Determination of Technical, Allocative and Economical Efficiency of Cotton Growing Farmers in Tehran Province (case study: Varamin)

Document Type : Research Paper

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Abstract

The main objective of this study was to determine technical, allocative and economical efficiency of cotton producers to analyze degree of farmer's success in optimum allocation of production resources and also study of possibility of increasing production, with specific production resources. Data were obtained by systematic random sampling in 2008 through 110 cotton producers of Varamin. Stochastic frontier production and cost frontier functions were used to analyze technical, allocative and economical efficiencies. Based on the results, some variables such as land area, machineries, labor, seeds and water have significant and positive impacts on cotton production in Varamin. Also, age and promotion terms affects technical inefficiency negatively. But relationship between technical inefficiency and number of patches is significant and positive. Estimation of efficiencies show that on average, technical, allocative and economical efficiency are 93%, 80% and 74% respectively. The ranges of technical efficiency, allocative efficiency and economical efficiency were calculated to be about 40%, 43% and 31% respectively. Based on the findings, educating farmers about farm management and economic use of inputs as well as expanding their knowledge to enhance production and efficiency is so essential.

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