Document Type : Research Paper
Authors
1 Department of Agricultural Economics, College of Economic and management, university of sistan and baluchestan, Zahedan, Iran
2 Department of Agricultural Economics, Agricultural Research Institute, Research Institute of zabol, University of Zabol, Zabol, Iran.
Abstract
Keywords
Main Subjects
Extended Abstract
Introduction
The scarcity of factors of production forms the basis of economics. At different times under any condition, limited quantities of production inputs, both human and non-human, are always available. In developing and developed countries, due to the limited resources of food production and the growing food needs of human societies, it is possible to measure the efficiency of agricultural operators, the gap between the best producer and other producers in terms of identical technology determined. Therefore, determining the efficiency of farmers can be very useful in analyzing the set of policies used in the field of agriculture. On the other hand, agriculture in these countries is a risky activity and it is important to include risk in models for analyzing the behavior of farmers. There is ample evidence of risk in agriculture and agricultural operators are at risk for a variety of reasons, such as lack of control over climate change, pests and diseases, and the state of markets for the supply and demand of agricultural products and inputs. Risk has been mentioned as an important, continuous and effective factor on farmers' behavior in eliminating imbalances from traditional agriculture. Therefore, studies related to the production efficiency of agricultural products by considering the effective factors on production, including the risk factor, is one of the most important issues in the agricultural economy in the current condition of the country. Agricultural units in the field of wheat production are no exception to this issue, due to this issue, the need to improve efficiency and optimal allocation of resources, taking into account the existing constraints is felt.
Materials and Methods
In this study, the present study investigates various types of efficiency with risk of production. To achieve these goals, the methods in this study, the stochastic frontier production model (SFA) and the Just and Pop model are used to analyze the efficiency combined with the risk of input production. Data were collected by completing a questionnaire in 3 Zabol, Zahak and Hirmand cities of 250 wheat cultivators in 2020-2021. The general random frontier production model for agricultural fields is considered as follows.
Battis et al. added the SFP model structure to Just and Pope Model, and in this way, the SFP model with the flexible risk feature was obtained as the following relationship, which can simultaneously study efficiency and risk.
In order to estimate the efficiency under the stochastic frontier analysis model, first, to estimate the technical and economic efficiency, a suitable functional form for production and cost functions must be selected, for this purpose, 3 types of Cobb-Douglas, transcendental and translog (logarithmic transcendental) function, which are neoclassical features have well, were selected in this study. Then, using Frontier 4.1 software, selective production functions and technical inefficiency pattern were simultaneously estimated by maximum likelihood method.To estimate the economic efficiency, the stochastic frontier cost function model has been used, and to estimate the marginal cost function, the dual frontier production function has been used. The dual of the frontier production function is defined as follows
Conclusion
In this research, the types of efficiency combined with the risk of wheat farmers in Sistan region were obtained by the method of stochastic frontier analysis (SFA). In order to achieve better results, the study area was divided into 3 main cities and the relevant calculations and analysis were examined in each of them separately. According to the obtained results, wheat farmers in all 3 cities have produced in the third district using hired labor .The results of production elasticity showed that the return to scale in wheat fields in 3 cities of Zabul, Zahak and Hirmand is 1.20, 0.83 and 1.15 respectively. For all 3 cities, the input of cultivated area has been investigated as one of the most effective and positive factors on increasing the income and profit of wheat farmers. On average, the economic efficiency of wheat farmers in Zabol, Zahak and Hirmand cities is 0.39, 0.47 and 0.42 respectively. This shows that there is a great potential to increase the gross income of wheat farmers. Also, the allocation efficiency for the studied cities was 0.49, 0.54 and 0.58% respectively. Also, the results of production risk analysis showed that the input number of irrigation in all three cities had negative effects and labor input had a positive effect on production risk. Therefore, considering that water input is a reducing-risk input, the use of new irrigation technologies and farming methods is recommended according to the climatic conditions of the region. Government support for producers, monitoring prices and banking facilities, meeting production needs and providing opportunities to improve the wheat market can be key strategies for the success of producers and their appropriate income.
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