The Economic Efficiency of Wheat Farms in Baghdad Province (Abu-Ghraib), (In Iraq - 2015)

Abstract

Wheat is considered as a strategic crop and it occupies economic position in most of the world countries due to its nutrition importance ,it is a food resource of more than 35% of world population and it is considered the most importance cereal crop that covered the largest area grown by wheat on the earth surface .in spite of its importance, wheat production suffers a clear turbulence because farmers don’t go on planting wheat due to the gated net return reduction resulted by not using the new technical and scientific tools in farming besides bad management which is considered in general as the important limitation factor in agriculture in Iraq and in wheat cultivation in specific case. ,Abu-Graib region was chosen as an applicable model in this study. The data was collected by using questionnaires that were given to 72 farmers in AbuGhraib region in agricultural season 2014-2015 , and it formed 3.42% of wheat farms in the studied society and 2103 farmers . The research subjected analysis of revenues and costs items to study the economic efficiency by application of economic efficiency criterias and determine the technical efficiency on concept of the randomized border analysis after determination of the production logarithmic function by using Frontier program. , The result showed that all the farms achieved valuable economic income when the economic efficiency criterias were applied .Results showed values ,(profit , income net, farming return to Labor returns to farming management incomes and Benefit Cost ratio were ( 492246.88 , 470825.88 , 462078.8 , 29568.3 and 4.6 ) thousand dinars respectively.The best period to recover the capital was in the area farm group 31 donums and more, It reached to 0.20 .at break – even point was 16.12 tons and there was positive relation between rising income level and land area .The technical efficiency was determined according to stochastic frontier analysis model after determinations of transcendence logarithmic function by using Frontier program which pointed that the work and the capital had positive effect on yield production quantity when their increase in 1% ratio resulted to increase production to 0.36% and 0.64% respectively. The technical efficiency was 99%and this means that the farmers can increase the production to 1% without increase in the used economic resources.