Capital data for productivity measurement

The paper discuss the use of capital data from FADN (Farm Account Data Network) for agricultural total factor productivity measurement calculating multifactor productivity index. Despite methodological problems related to construction of the indexes, as well as problems associated with the appropriate measurement of particular inputs, especially capital input, growth accounting estimates generally provide a great deal of information regarding productivity. The appropriate measurement of capital in the explanation of productivity change is an important and debated topic. The purpose of this paper is to debate a method for deriving the appropriate measure of capital services and find a way to make the FADN supply data that allows measures for varying levels of capital utilization. The capital data that can be obtained from the FADN are, in general terms, of better quality than the macroeconomics data when analysing the agricultural private sector. They are also very useful if we want to increase the level of desegregation on the productivity analysis should it be important to discuss the procedures involved in constructing the capital input index