Overview
- An IDB flagship report released Monday finds regional total factor productivity grew 0.9% a year in 2010–2020, versus a 1.7% long‑run average since 1960.
- Despite nearly sixfold growth in output since 1960, recent gains stemmed largely from expanding land, labor, fertilizer, machinery and water rather than efficiency.
- The report debuts a Sustainable Productivity Index (1995–2021) indicating performance looks weaker once environmental costs are factored into growth.
- Country evidence highlights Argentina, where farm TFP averaged 1.78% annually from 1961 to 2022 but slowed recently, and average technical efficiency was about 50% in 2018.
- The IDB urges closing technology‑adoption gaps, strengthening extension and data systems, and investing in infrastructure, research and climate adaptation, noting agriculture is about 6% of regional GDP, 15% of jobs and 24% of exports.