New evidence of the driving forces behind Brazil's agricultural TFP growth—A stochastic frontier analysis with climatic variables and land suitability index

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Brazil's agricultural total factor productivity growth has a lower rate of 1.96% per annum, indicating significant climate impacts.
Evidence suggests that climatic variables like rainfall and temperature affect technical and environmental efficiency.
Using stochastic frontier methods, this analysis assessed agricultural productivity across 510 Brazilian micro-regions over three decades, 1995 to 2017 with a focus on land suitability index effects. Excessive climate change could compromise future agricultural productivity, urging refined agricultural policies for sustainability.

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Stochastic analysis reveals climatic impacts on total factor productivity in Brazilian agriculture, suggesting policy implications.

Spolador et al. (2024) studied this question.

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