Measuring The Economic Efficiency Of Wheat Producers In Salah Al-Din Governorate For The Agricultural Season 2022-2023

Abstract

This study examines the determinants of wheat output and the technical efficiency of wheat farms in Salah al-Din Governorate during the 2023 agricultural season by applying stochastic frontier analysis. The required primary data were obtained through a purpose-designed questionnaire administered to a random sample of 150 farmers who used fixed or center-pivot sprinkler irrigation. The fixed-sprinkler group included 60 farmers across holding sizes of 10, 20 and 40 dunums, whereas the center-pivot group comprised 90 farmers with holdings of 60, 80 and 120 dunums. The estimated production coefficients were positive, statistically meaningful and compatible with economic expectations. The maximum-likelihood log function recorded a positive value of 0.147, indicating that technical changes affect the stochastic component, agricultural output and consequently technical efficiency. Water-use results indicated that the most rational use occurred in the 40-dunum fixed-sprinkler category and the 60-dunum center-pivot category. The corresponding scope for improving use efficiency was 19% and 18%. Younger farmers also achieved greater efficiency than older farmers because they were more able to adopt contemporary agricultural technologies. And the study also suggests wheat farmers can increase output through allocation to more economic resources. The study suggests extension and training activities and communication with research centers should be intensified, and farmers should be directed towards input combinations which will minimize resource loss, lower costs and increase returns.