Productivity of the agricultural industry
Productivity of the UK agricultural industry.
Total factor productivity is an indicator of the long-term performance of the agricultural industry in the United Kingdom. It is the growth of output from which the impact of all inputs is removed and reflects anything that cause output to grow faster than the combined growth of all inputs, such as improvement in technology. In the long-term, productivity growth in agriculture allows farm commodities to be grown and harvested more cheaply. As well as benefiting farmers, this benefits food manufacturers and consumers as most of these cost reductions are passed on to the non-farm economy as lower commodity prices.