Analysis of types of efficiency with risk of wheat production in Sistan region

Document Type : Research Paper

Authors

1 Department of Agricultural Economics, Faculty of Management and Economics, university of Sistan and Baluchestan, Zahedan, Iran

2 Assistant Professor Department of Agricultural Economics, Agriculture Research Institute, Research of zabol, Zabol, Iran.

10.22059/ijaedr.2022.341903.669143

Abstract

Wheat is one of the most important crops in Sistan region, which in addition to high cultivation area plays a significant role in the economy of this region. Examining the efficiency of this product can play an important role in increasing its production. Therefore, the present study investigates various types of efficiency with risk of production. To achieve these goals, the methods Random Frontier Analysis (SFA) were used. Data and data were collected by completing a questionnaire in 3 Zabol, Zahak and Hirmand cities of 250 wheat cultivators in 2020-2021. The results showed that in Stochastic Frontier analysis with three types of efficiency, Zahak city with 87% and 47% of the highest technical and economic efficiency and Hirmand city with 58% had the most efficient allocation. Also, the results of risk analysis showed that the irrigation inputs in all three cities had negative effects on production risk. The results of economic and allocative efficiency show that farmers' familiarity with the principles and techniques of scientific production and how to properly manage resources and factors of production is not acceptable. Therefore, it is recommended to hold appropriate training and extension courses to familiarize farmers with how to make optimal use of production factors and ultimately improve the technical, allocative and economic efficiency of wheat farmers. 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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Iranian Journal of Agricultural Economics and Development Research

Articles in Press, Accepted Manuscript
Available Online from 10 December 2022

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