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<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />t'~~#'Itt""3 <br />j;J J 'i;~ ;J ,) <br /> <br />Table II-I: Indices of Factors Rel ated to Farm Inputs and Outputs. <br /> crop <br /> Prices Prices Price Farm Produc- Farm Production <br />Year Paid Received Ratio Inputs tiv ity Output per acre <br /> (Percentage of 1967 ) <br />1950 75 103 137 104 71 74 69 <br />1971 120 112 93 100 110 110 112 <br />1976 187 186 99 102 115 117 111 <br />1977 196 183 93 104 114 119 116 <br />1978 212 210 99 103 118 122 121 <br />1979 240 241 100 103 125 129 130 <br /> <br />1971 to 99 in 1976 anG 100 in 1979. These favorable terms of trade are <br />beginning to have this impact on long-run price expectations of producers, <br />and for the first time in roughly three decades, are providing the farm <br />sector with incentives to increase output by increasing total inputs. If <br />these favorable long-run price expectations continue, we can expect input <br />use in agriculture, which increased from an index of 100 in 1971 to 104 in <br />1977, to accel erate. Coupl ed with continuing technological development, <br />this increasing output will cause unprecedented increases in crop yields. <br />further reduc ing agricultural dependence on 1 and as the 1 imited factor of <br />produc ti on. <br /> <br />I I -15 <br />