Estimation of Economic Efficiency and the Production Function of Alfalfa Crop in Diyala Governorate.
Journal Title: IOSR Journal of Agriculture and Veterinary Science (IOSR-JAVS) - Year 2019, Vol 12, Issue 1
Abstract
The objective of this research was to study the economic efficiency and the production function of alfalfa crop in Diyala Governorate to determine the factors which affect the production of alfalfa, as well as the identification of the optimal quantities that achieve economic efficiency. And assessment of economic efficiency and its components Technical efficiency, efficiency of the allocation and knowledge of capacity efficiency and yield size using a questionnaire distributed to 30 alfalfa farmers in different areas DiyalaGovernorate randomly. The quantitative method was used to estimate the factors affecting the production of the alfalfa crop using evewis.9. while the economic efficiency and its technical and customized sections were estimated using the method of Data Envelopment Analysis using DEAP program. In the analysis of multiple regression in the Ordinary Least Squares (OLS) method, the productionlogarithmic function was estimated, which shows the relationship between the total production of the variable dependent (production quantity) and the independent variables of labor and capital.The economic analysis shows that the sign of all parameters is consistent with the economic, statistical and standard logic. The parameter value of the variable in the double logarithmic function represents the production flexibility of this variable. We observe from the results of the estimated function that the flexibility of the capital is 1.259 which was positive value, and higher than its equivalent, this mean, it is more influential than the other variables. This means that the increase of capital by 1% leads to increase of production by 1.259% with assuming the stability of other factors. The total production flexibility reflected an increase in returns to scale of 1.45% in the case of a 1% increase in production resources leading to an increase of 1.45% in alfalfa production. Meaning that they provide the possibility of increasing total production increasingly when resources are used at a fixed rate. By statistical analysis, the test F showed the significance of the function, indicating the realism of the function and the importance of the variables factors. The t-test showed a capital significance at 1% and the work was not significant. coefficient of determination R-2 was 0.83%. The technical efficiency measured with the change in the return of capacity was about 0.821%, while the return of the capacity with capacity return stability of the of was about 0.748%.The decrease of technical efficiency of these farms is due to the small cultivated areas and the poor management and organization of farms. The results showed that the efficiency of the allocation capacity ranged between 0.24 and one with mean reached 0.577. This ratio is relatively low and indicates the potential for this crop farmers to increase their production. This means that the redistribution of economic resources will provide 0.423 of the production cost and maintaining the current production level. The production factors are used within the second stage and increasing them leads to increase of production by a larger percentage. The study recommends the development of agricultural plans and price policies for this crop and the opening of many marketing routes to reduce the burden on farmers and protect them and reduce the reluctance of farmers to grow this important crop.
Authors and Affiliations
Mhana Abdullah Mahmood
Keywords
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- EP ID EP441079
- DOI 10.9790/2380-1201023441.
- Views 69
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