Labor productivity and agribusiness

Labor productivity growth in the agribusiness sector represents a mixture of strong and weak performance. While labor productivity growth on United States farms has been considerably above average for several decades, the record of performances of labor productivity in food retailing, transportation, food service, and selected food processing industries has been poor. Opportunities for both systems wide and firm level improvements in productivity are outlined. Improved productivity growth in the agribusiness sector of the United States economy can contribute to a lower inflation rate, improved competitiveness of American food and fiber producers, and an increase in the standard of living, among other benefits.