ABSTRACT

This chapter begins by reviewing the main economic forces that influence sustainable US agricultural production. It highlights how research efforts and changing technology have been critical factors in determining US agricultural productivity patterns. US agricultural output, when measured as an aggregated index value, is an estimate of total US agricultural production in a particular time period. The chapter explores inter-relationships among productivity, sustainability, and climate change that are expected to shape the US agri-food system's capacity to respond to changing economic and environmental conditions. It determines an agricultural productivity indicator by utilizing a weighted-average aggregate index value for each observation over time in relation to a base-period index value. Long-term government effects on productivity include macroeconomic policies that encourage technological investments. Government programs that boost agricultural research and innovations affect long-term Total Factor Productivity (TFP). TFP growth can be a powerful economic force.