Agricultural Economics

Agricultural Economics

Managing the use of production inputs to improve the efficiency of agricultural production in Iran: Application of dynamic network data envelopment analysis

Document Type : Research Paper

Authors
1 Associate professor of agricultural economics, Department of Agricultural Economics, Faculty of Agricultural Engineering and Rural Development, Agricultural Sciences and Natural Resources University of Khuzestan, Mollasani, Iran.
2 Master's Degree Graduate, Department of Agricultural Economics, Faculty of Agricultural Engineering and Rural Development, Agricultural Sciences and Natural Resources University of Khuzestan, Mollasani, Iran.
3 Associate professor of agricultural economics Department of Agricultural Economics, Faculty of Agricultural Engineering and Rural Development, Agricultural Sciences and Natural Resources University of Khuzestan, Mollasani, Iran.
Abstract
In recent decades, the agricultural sector has faced numerous challenges, including population growth, increased demand for food, and resource constraints. These issues have led to reduced productivity and pressure on natural resources, raising concerns about the sustainability of food production. This study aims to analyze the efficiency of agricultural production in Iran by evaluating the use of production inputs and their environmental impacts. For this purpose, a dynamic data envelopment analysis (DEA) method based on shortages and surpluses was used, considering different inputs such as labor, chemical fertilizers, and cultivated area for different provinces over a six-year period (2014 to 2019). Ammonia emissions were defined as an undesirable output, and added value of agricultural products was defined as a desirable output. The results showed a significant positive correlation between the efficiency of agricultural inputs, such as labor, chemical fertilizers, and cultivated area, and the production of undesirable outputs, such as ammonia emissions. On average, the overall efficiency of the provinces from 2014 to 2019 was around 0.71, with 48% of the provinces having below-average efficiency. Provinces such as Alborz, Bushehr, and Tehran were identified as fully efficient with an efficiency score of 1.00, while Kohgiluyeh and Boyer-Ahmad had the lowest efficiency at 0.155. Exploiting the full potential of inefficient provinces, especially those with below-average production efficiency, for better management of production inputs will significantly increase their efficiency. In this regard, the use of various extension techniques to educate farmers in inefficient provinces to approach the reference (fully efficient) provinces is recommended.
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