An examination into the significance of a farm input comparative evaluation service for New Zealand : thesis presented in partial fulfilment of the requirements for the Degree of Master of Agricultural Science at Massey University

The problem of choosing the most productive input per $ to combine with other farm inputs is becoming increasingly magnified with the greater dependence of primary industry on secondary industry for its inputs. Tweeten suggests that in the United States, while the aggregate farm input level has remained nearly constant since the late 1920's, use of purchased inputs has increased approximately 7o% since 1929. Breimyer quotes Loomis and Barton, who estimate that as recently as 1940 about 66% of the total inputs into agriculture were land and farm-resident labour; however in 1961 only 37% of the inputs belonged to these classes, showing that non-farm inputs have doubled their proportionate share. It is suggested that the farmer does not have adequate information at the present time to help him in his decision making as to the most productive inputs to purchase, particularly when the goods produced by the non-farm sector of the economy consist of a few goods which are slightly differentiated in design. The presence of a large number of slightly differentiated goods is associated with specialization and scale in secondary industry. [FROM INTRODUCTION