Total Factor Productivity (TFP) is a measure of efficiency, but it is also a strong indicator of the capacity to manage risk.
In the case of livestock production, for example, healthy animals are more productive animals. They generate more output per animal and need less feed, water, and other resources. Animal care practices to support productivity growth include vaccinations, protective housing, monitoring animals for signs of illness, isolating sick animals for treatment, and eliminating breeding grounds for disease vectors, like ticks. These same practices are essential to preventing and managing pandemic-style outbreaks of diseases, such as an avian flu or African Swine Fever.
The OECD report on agricultural resilience calls appropriate investments in agricultural productivity growth a “no-regret” strategy to strengthening resilience. The report recommends investments in, “the provision of information, education, infrastructure, and research and development,” all of which are essential public goods advocated for in the GAP Report.29
These policy goals, explored in more detail in the online edition of the GAP Report, have benefits for producers, consumers, and the environment. These goals provide agricultural producers the innovations and knowledge they need to increase their output more efficiently, improve profitability, reduce waste and loss, and create opportunities for economic growth. These policies and investments protect productivity gains during times of crisis and ensure greater productivity in the future.