MEASURING OF EFFICINCY AND DETERMINING THE ECONOMIC SIZE OF FARMS USING DATA ENVELOPMENT ANALYSIS | ||
| AL-dananeer | ||
| Article 1, Volume 1, Issue 8, August 2018, Pages 475-504 | ||
| Author | ||
| Eskander H. Ali Jassim M. H | ||
| Abstract | ||
| Recently attention Increased in natural resources in all parts of the world where the agricultural sector has some of them, So as to protect them from abuse and to take advantage of these resources economically, and as beneficial to the members of the community, And it doesn’t tack place only when resources are investedby using scientific method works to reduce costs and take advantage of local resources to reduce the economic cost. Therefore research aimed to measure the economic efficiency and the separation of its components to the technical efficiency and allocative by using data envelope technique. To achieve this, data were obtained from 132 farmers in Diyala province, collected randomly, when using Data Envelopment Analysis DEA and under variable returns to scale, the results indicated that the average capacity efficiency reached 0.77, This means that these Farms could increase there’s production by 33%, And 17 farms accounted for 12% of the sample farms can be considered as a reference for the rest of the inefficient farms, which works at their optimum size.The technical competence, which was based in the calculation of the capacity efficiency by an average of 0.41 therefore thesefarms, can increase production by 59%. And efficient farms that have achieved fixed size returns, in light of variable returns to scale exceeded its counterpart under the constant returns to scale, while half of the farms matched their technical proficiency achieved efficiency equal to one means technically efficient.The category possessory 15.5 - 30 acres has achieved the highest average efficiency capacity amounted to 0.81 while Category 1-15 acres has achieved the highest average efficiency of the technique under variable returns to scale reached 0.57. While the highest efficiency technology under constant returns to scale was 30.5 - 45 acres amounting to 0.47. Allocative efficiency reaching an average of 0.47 means that the re-distribution of resources will provide 53% of the cost of production while maintaining the current level of production. As for the economic efficiency came with an average low of 0.24 means that the farmer is able to produce much of the current output using only 24% of the input. The study concluded that the high production costs led to high line costsabove equal output curve, making some of the farms are technically efficient but inefficient allocatively, And have made a range of recommendations, including follow scientific methods in the management of the farms of various size and re-distribution of economic resources so as to ensure the same level of production or more with lower costs. | ||
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