Economic analysis of the costs of production of wheat crop in the area of Rashidiya agricultural season 2007-2008

Abstract

The aim of this research is to study costs structure of wheat production in AL- Rashdia region for the agricultural season 2007-2008. The order to achieve its objectives, the research depends on econometric & statistical analysis was conducted on the primary data which have been collected by interviews for farmers of the study region. The main results of the study are as the following: (1) The optimum output minimizing costs and its companion maximum profit have increased above the actual average farms output by 4.9 and 15.52 tons respectively, and according to the prevalent farms price in AL-Rashdia region, the net actual farms income has decreased by 2554.5 thousand dinars comparing with estimated optimum output & maximum profit which are 4131.65 & 6003.85 thousand dinars respectively. (2) The supply elasticity of price for wheat is remained to be weak proportionally due to the fact that wheat cannot be cope with its production .The research has also explored that the government price is an encouraging price and all the sample farmers have obtained an economic profits, therefore the research recommended that it is not necessarily to increase purchases price of wheat crop by government which could have negative side effects on the subsidy policy of producers price more than it could be.