What is yield gap in agriculture


The yield gap is a term that is used in investments and agriculture. It is a method of comparing the performances of shares and bonds – it is the average ** yield on shares minus the average yield on bonds. The yield gap, in agriculture, is the difference between yield potential and average farmers’ yield over a specified area and period.

The yield gap, defined as the difference between actual farm yield and the yield potential with good management that minimizes yield losses from biotic and abiotic stresses, is a key biophysical indicator of the available room for crop production increase with current land and water resources6.Sep 30, 2021


Why is the yield gap important?

First, yield gap analysis provides the foundation for identifying the most important crop, and soil and management factors limiting current farm yields and improved practices to close the gap. Second, to enable effective prioritization of research, development, and interventions.

How is yield gap calculated?

Yield gap is calculated by subtracting achieved average yield from the yield potential (Lobell, Cassman, and Field, 2009). Understanding yield gap is very crucial for it can assist in crop yield predictions since yield potential shows the probable future productivity to be achieved.

What is yield gap analysis?

Yield gap analysis is an increasingly popular concept. It is a powerful method to reveal and understand the biophysical opportunities to meet the projected increase in demand for agricultural products towards 2050, and to support decision making on research, policies, development and investment that is needed.

What is close the yield gap?

For closing yield gaps, we need to implement various location specific agricultural input and management strategies. Adequate application of nutrients alone can increase crop calorie production by almost 20% whereas improvement of soil quality alone with adequate fertilizer application can generate an additional 30%.

How is yield calculated agriculture?

To estimate crop yield, producers usually count the amount of a given crop harvested in a sample area. Then the harvested crop is weighed, and the crop yield of the entire field is extrapolated from the sample.

What is yield potential of crop?

Yield potential is defined as the yield of a cultivar when grown in environments to which it is adapted, with nutrients and water non-limiting and with pests, diseases, weeds, lodging, and other stresses effectively controlled.

How we can extract yeilding from the agricultural field?

Here, we present various yield estimation methods followed by comparative analysis of those methods at various scales i.e. from field to landscape level.1 Crop cuts. … 2 Farmers’ survey. … 3 Estimating crop yield by using grain weight (test weight) … 4 Whole plot harvest. … 5 Sampling for harvest unit. … 6 Expert assessment.More items…

What is the difference between actual yield and attainable yield?

The difference between the attainable yield and the theoretical yield is an unpreventable loss, whereas the difference between the actual yield and the attainable yield is a preventable loss. One can usually determine attainable yield experimentally. We must grow the crop free of constraints (e.g., pests).

Which of the following options does not help in increasing the yield of crops?

The Supplying fertilizers and pesticides do not help in modernising agriculture.

What is earnings yield gap?

The yield gap or yield ratio is the ratio of the dividend yield of an equity and the yield of a long-term government bond. Typically equities have a higher yield (as a percentage of the market price of the equity) thus reflecting the higher risk of holding an equity.

What is actual yield in crop production?

The actual yield is determined by dividing total production (which includes harvested and appraised production) by planted acres for annual crops or by insurable acres for perennial crops.”

What is the difference between actual yield and the attainable yield?

The difference between the attainable yield and the theoretical yield is an unpreventable loss, whereas the difference between the actual yield and the attainable yield is a preventable loss. One can usually determine attainable yield experimentally. We must grow the crop free of constraints (e.g., pests).

What is the green revolution in agriculture?

green revolution, great increase in production of food grains (especially wheat and rice) that resulted in large part from the introduction into developing countries of new, high-yielding varieties, beginning in the mid-20th century.

Why are average farm yields smaller than yield potential?

Average farm yields in a region or country are inevitably smaller than yield potential, sometimes significantly so, because achieving yield potential requires near perfect management of crop and soil factors that influence plant growth and development throughout the crop growth cycle.

What are the characteristics of a crop?

In contrast, crop plants often have characteristics that tend to limit their ability to capture resources. These include shallow roots and, in annual crops, brief duration of a closed canopy.

Why are farmers’ costs so high?

In short, farmers seek to maximize profits, not yields.

What is agricultural intensification?

Agricultural intensification is a predominant form of global land-use change, both during the past century and currently (19, 30, 31, 137), … … and livestock breeds, with a corresponding reduction of biological diversity in agriculture (30, …

Why is there scope for cropland expansion?

There is considerable scope for cropland expansion because many natural ecosystems possess conditions suitable for crops, and indeed, many projections of global food supply indicate a sizable amount of land conversion in Latin America and Africa ( 1, 2 ).

Is there any progress in yield potential?

Yet, the lack of progress in yield potential, coupled with absence of recent yield growth for some of the major cereal crops in several countries, is certainly cause for concern and raises the critical issue of how much average yields can continue to increase in the face of potentially stagnant yield potential.

Vulnerability of Food Resources to Climate

Practices adopted for increasing agricultural yield have turned out to be neither economically nor environmentally sustainable.

Intensified Agroecosystems and Their Effects on Soil Biodiversity and Soil Functions

Mathew E. Dornbush, Adam C. von Haden, in Soil Health and Intensification of Agroecosytems, 2017


The prototype of microbial fertilizer (MF) was the use of soil microorganisms to enhance agricultural yield due to the benefits of bacteria in the soil.

Ecosystem Services

Christian Mulder, … Guy Woodward, in Advances in Ecological Research, 2015

Understanding and combating the antibiotic resistance crisis

Tanim Arpit Singh, … Pradeep Shukla, in Microorganisms for Sustainable Environment and Health, 2020

Production Economics

Global climate change should have first-order effects on agriculture ( Schenkler and Roberts, 2009 ). Finding the response of agricultural yields to weather is the first step in finding the effects of predicted climate change on agriculture.

Good Uses for Symbiosis

With more than 7.3 billion inhabitants in 2015, the population of Earth is six times higher today than it was in 1900. Fortunately, agricultural yields have increased in proportion, enabling us more or less to feed the world. We owe this to major evolutions in production methods since the first plants were domesticated around 10,000 years ago.

What is yield gap?

Yield gap is a term that is commonly used in the financial world and agriculture as well. For this article, we will primarily be focusing on its financial meaning and relevance. Yield gap (also yield ratio) allows an investor and analyst to compare the performance of shares and bonds.

When to use yield gap?

One should normally use the yield gap when evaluating bonds and shares in the same market. The measure is helpful in stock valuation, and also suggests if the equity market is over or undervalued in relation to bonds.

How to calculate dividend yield?

Dividend yield, one can calculate by dividing Dividend per Share (DPS) by the market value of the share. One can calculate the DPS by dividing the total dividend by total outstanding shares.

What is reverse yield ratio?

Reverse yield ratio mainly comes in use when an average yield on bonds is higher than the dividend yield on stocks.

What does it mean when the gap is small?

Simply say, if the gap is small, or the equity yield is small than the bond yield, it implies that equity is overpriced. On the other hand, if the gap is large, or the equity yield is bigger than the bond yield, it means that equity is cheap.

What is gap in agriculture?

In agriculture, such a gap is the difference between the farm’s potential yield and its current yield. Potential yield means the output if the farm runs well and makes use of the available technology. The measure also helps to compare the country-wise difference between the crop yields. Share Knowledge if you liked.

What is a positive gap in the stock market?

On the other hand, when the consumer prices are more stable , a positive gap is less indicative of the opportunity. During times of stable inflation, investors are okay with a lower bond yield.

What is yield gap?

The yield gap is calculated to determine whether equity is underpriced or overpriced compared to government bonds. The smaller the yield gap, the lower the equity yield is compared to government bonds, indicating that equity is overpriced. Conversely, the higher the yield gap, the greater the yield on equity is compared to government bonds, …

What is the gap between yields?

The Yield Gap is the difference between the yields of government-issued securities. Bond Issuers There are different types of bond issuers. These bond issuers create bonds to borrow funds from bondholders, to be repaid at maturity. and the average dividend yield on stock shares.

What is yield on equity?

Yield on Equity. The Yield on Equity is the earnings or return on an investment’s equity portion. It is the amount of earnings compared to the amount invested in equity.

What happens to the yield on a bond as the price of a bond increases?

As the price of a bond increases, the yield on a bond falls; as the price of a bond falls, the yield on a bond increases.

When does the reverse yield gap apply?

The reverse yield gap only applies during those time periods when the average yield from investing in bonds is higher than the average dividend yield on stocks.

Why is a positive gap not a good indicator of inflation?

However, when consumer prices are stable, a positive gap is not as strong an indicator because during periods of very low inflation, investors are more inclined to accept lower yields. A widening gap between bond and equity yields indicates a new growth cycle.

What is dividend yield?

The dividend yield is a financial ratio that indicates the amount a company pays out in the form of dividends each year relative to the value of its shares or Market Price Per Share. In other words, the dividend yield is Dividend per Share (DPS) divided by Market Price per Share (MPS).

Why is yield gap important?

The yield gap concept is useful to government planners, implementers, crop breeders, agronomists and the private sector in particular because it informs estimates of future crop yields for any given region and type of crop. It thus supports targeting top-down interventions and the technologies and inputs they require.

What is the yield gap narrative?

The yield gap narrative maintains the focus on a select number of grain and commodity crops, and excludes attention to fruits, vegetables or livestock as important pieces in the food security puzzle. Indeed this narrative diverts attention away from bigger questions about the entire food system, which as mentioned earlier in reference to post-harvest loss, includes the distribution and use of food after it is produced.

What is the competition between food and energy?

The competition between food and energy is an enormous risk that is currently facing the agricultural sector. Between 2000 and 2008, the use of crops for the production of biofuels (maize in the US, sugarcane in Brazil and vegetable oil seeds and cereals in Europe) increased by three times the 2000 value –110 million tonnes, about 10% of global production – driven by policies and incentives that promote growth of this sector (FAO, 2009 ). The FAO study estimates that under a major increase in biofuel production, by 2050, there would be 3 million and 1.7 million more malnourished children in sub-Saharan Africa and South Asia, respectively (FAO, 2009 ).


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