Capital efficiency may be considered from various economic and socio-economic perspectives. It was only during the past decade that the agricultural sector managed to use capital more efficiently than before 1960. This is in contrast with other sectors in the economy which experienced declining c~pital productivity over the past three decades. However, substitutiing capital with labour is since 1985 no longer to the advantage of the industry. Several shortcomings in the measurement of capital efficiency arc shown, the most important of which is inconsistent data collection by the relevant authorities. Given certain economic prospects, doubt is expressed about the flexib ility of the agricultural sector to maintain the increasing tendency in capital efficiency.