Land Quality as an Input to Production: The Case of Land Degradation and Agricultural Output**The authors gratefully acknowledge the financial assistance of the Land and Water Resources Research and Development Corporation, the co-operation of the Department of Land and Water Conservation in providing the land degradation data, the helpful assistance of Owen Graham who undertook the Department’s land degradation survey, the timely help of Jeremy Black in assembling the land degradation data, and the analytical skills of George Battese and Tim Coelli. Andrew Blake, Richard Chewings, Glen Christiansen, Bob Crouch, Noel Flavel, Stephen Kelly, Des Schroder, and Bob Wynne all provided useful information and helpful comments. We would like to thank two anonymous referees for their valuable comments.