Decomposing Productivity and Efficiency among Western Australian Grain Producers
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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.