@article{Islam:100565,
      recid = {100565},
      author = {Islam, Nazrul and Xayavong, Vilaphonh and Kingwell, Ross  S.},
      title = {BROADACRE FARM PRODUCTIVITY AND PROFITABILITY IN SOUTH  WESTERN AUSTRALIA},
      address = {2011},
      number = {422-2016-26866},
      pages = {16},
      year = {2011},
      abstract = {This paper examines broadacre farm performance in  south-western Australia. This
region has experienced  pronounced climate variability and volatile  commodity
prices over the last decade or so. Relationships  between productivity and
profitability are explored using  panel data from 50 farms in the study region. The
data are  analysed using non-parametric methods. Components of  farm
productivity and profitability are measured over the  period 1998 to 2008.
Economies of scale and scope are shown  often to be positive contributors to
productivity and  profitability. However, the main finding is that technical  change,
much more so than technical efficiency, has  supplied over 68 percent of the
improvement in total factor  productivity for farms in the different climatic zones
of  the region from 1998 to 2008. In addition, growth in total  factor productivity is
the main contributor to farm  profitability. By implication, technical change,  often
accompanied by scale and mix efficiencies, is the  main driver of farm
profitability. These findings indicate  a vital role for innovation and R,D&E to
deliver  technologies and practices that bolster farm profitability,  as well as a
continuing role for scale and scope economies.  The products and knowledge that
come from innovation and  R,D&E are the springboard for technical change.
Through  technical change and scale and scope efficiencies farmers  in this study
have achieved higher profits.},
      url = {http://ageconsearch.umn.edu/record/100565},
      doi = {https://doi.org/10.22004/ag.econ.100565},
}