Evaluating the Productivity Performance of Agricultural Enterprises in Ireland using a Multiple Output Distance Function Approach

This paper uses a distance function approach to measure and decompose productivity growth of Irish agriculture between 1984 and 2000 for four principal farming systems. The technology used by each system is found to be sufficiently different as to warrant a system‐by‐system approach. The overall rate of productivity growth in Irish agriculture is found to be just over 1% for this period, but there are significant differences between systems. Sheep systems had the highest rate of productivity growth followed by dairy and tillage. Productivity in cattle farms fell during this period although there is evidence that this trend has been reversed in more recent years.