Journal of Agricultural and Resource Economics
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We provide empirical evidence to decompose productivity growth of a group of producers into technical change and efficiency measures at the farm level. Using four years of farm-level data from forty-five grain producers in the low- to medium-rainfall zone of Western Australia, we decompose productivity numbers to analyze total factor productivity. The results show that producers are generally technical, mix, and scale efficient, but the results for input and output mix efficiencies vary. The outcomes for input mix efficiency suggest that producers face some rigidity in their production decisions. In contrast, output mix efficiency suggests that most producers adjust their output mixes to account for different seasonal conditions and enterprise mixes.
Deregulation of the Australian dairy industry could affect the utilization of resources by milk producers and the profitability of dairy production. In this study we examine the feed mix that dairy producers use, both pastures and supplements, under partial and total deregulation. We are particularly interested in the interaction of pasture utilization and farm profitability. The results of this research demonstrate that profitable low-input dairy is constrained by the most limiting resource, feed supplied by pasture, and that the interactions between economic and biological processes are critical to farm profitability.
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