The Indicator
This indicator presents ratios of certain major inputs identified and quantified
by the U.S. Department of Agriculture (USDA) to total agricultural
outputs, also as quantified by USDA. The intent is to report the
amount of inputs needed to produce a unit of output, because the
quantities of, and tradeoffs between, individual inputs (such as
pesticides and fertilizer) are important. For example, if decreasing
amounts of fertilizer are required to produce a unit of output,
this has implications for the cost of production (fertilizer is
a significant cost) and for off-farm environmental impacts (excess
fertilizer can contribute to water pollution).
The Data
Data Source: Data came from Agricultural Productivity in the United
States published by USDAs Economic Research Service (ERS).
Data Collection Methodology: The output data represent all agricultural
outputs, including animals and animal products (meat animals, dairy products,
poultry, and eggs) and crops (food grains, feed crops, oilseed crops, sugar
crops, cotton and cotton seed, vegetables and melons, and fruit and tree nuts).
Aggregation of multiple outputs or inputs into a single index often requires
assumptions about the comparability of unlike thingsadding tons
of corn to tons of strawberries would be nonsensical. USDA economists use an
approach that involves determining the adjusted price of a given output, which
is multiplied by the output quantity, so that all outputs can be added together
into the single value shown here. ERS developed a similar scheme for adding
inputs together; however, because the focus in this indicator is on changes
in different inputs as well as the overall amount of inputs, the individual
inputs are presented here. The yearly quantity of each input has been adjusted
to some extent by ERS to reflect the changes in quality. For example, similar
results can now be achieved with smaller quantities of pesticides. Thus, a larger
quantity of less effective pesticide might be treated as equal to a smaller
quantity of a more effective pesticide. The same is true for the other inputs,
such as labor, whose quantities have been quality- adjusted over time.
Data Manipulation: Each input has been divided by the total farm output
for that year. The data from ERS are all relative to a given year (1948) and
are not reported as actual quantities. Because the focus of this report is on
19502000, we chose the midpoint (1975) as a more appropriate index year.
Because of this, data (inputs and outputs) were simply divided by the 1975 value.
All input data were then divided by the value of total outputs for any given
year to produce the data shown in the figure.
Data Access: The data are available at http://www.ers.usda.gov/publications/aib740/;
a more detailed version of the data is available at http://www.ers.usda.gov/data/sdp/view.asp?f=inputs/98003/.
2003 Web Site Update: Data for 1997-1999
were obtained directly from ERS and can be
downloaded from
http://www.ers.usda.gov/data/agproductivity.
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