Agricultural productivity measures the difference between output growth and input growth rates.
If productivity growth is positive, then the same output can be produced with fewer inputs and lower costs. Over 1948-94, output in U.S. agriculture grew at an annual average rate of 1.9 percent, compared with 1.1 percent for the nonfarm sector. Greater agricultural productivity growth, higher yields, and lower farm prices have benefited consumers by supplying food at a reasonable cost. By 1996, the share of disposable personal income spent on food had fallen to 11 percent, compared with 22 percent in 1948. Soil erosion has declined by an estimated 40 percent since 1938, while cropland use has remained remarkably stable at about 400 million acres.