ESTIMATING OF THE OPTIMAL SIZE AND OPTIMUM AREA FOR WHEAT PRODUCTION IN BAGHDAD PROVINCE OF THE AGRICULTURAL SEASON 2017/2018

Abstract

The costs of production are one of the most important economic indicators that can be used to identify the extent of the technical and economic efficiency of the farms. Therefore, the research aims to estimate the cost function of wheat production in Baghdad province and its use in estimating the optimum size of production and cultivated areas, as well as calculate the technical, economic, price and profitability efficiency. To collect the research data, questionnaire forms were designed in the light of a random sample of wheat farmers of 101 farmers from Mahmudiya district during the agricultural season 2017/2018. The results showed that there is a big difference between the actual production volume and the optimum production volume by a difference of 143 tons, as well as between the actual areas and the optimal areas by about 33 dunums. The results of the technical and economic efficiency criteria showed that there is an inefficient use of the economic resources available of the study sample, which led to the actual production being less than the optimum production. The results of the profitability criterion proved that the dinar invested by the wheat farmers for obtain the actual production achieves about 1.4 dinars as a net profit, while the investment of one dinar for optimal production achieves around 2.5 dinars as net profit of the research sample. Therefore, it was recommended that sample farmers should be encouraged to achieve the optimum production volumes and utilize the optimum areas of research that would achieve technical and economic efficiency in the optimal use of resources available of the research sample.