Estimating wheat production cost function in Iraq for the agricultural season 2018-2019 (Waist Governorate an applied model).

Abstract

The wheat crop is considered an important strategic food crop and ranks first among field crops in terms of cultivated area and production. Despite the expansion of its cultivation throughout Iraq in general and Wasit Governorate in particular, production is still below the required level and does not meet the need for demand in the local market in addition to the high Production costs compared to production costs in developed countries. The total cost function was estimated in the long run LTC=405825.6Q-706.048Q2+0.07Q3+3234.234AQ-4474.61A2 Based on a random sample of (168) crop farmers in Wasit Governorate for the agricultural season (2018-2019), the results showed that the optimal size of production was about (871.86) tons, while the optimal area for production was about (315) hectares. It was noted that the average The actual cultivated area for the study sample amounted to about (29.5) hectares. This means that farmers must expand the cultivated area if they wish to use their resources in an optimal manner. Cost elasticity for the long term was also estimated at (0.972), and this indicates that farmers are working in the first stage of production. In any stage of increasing yields.

Keywords

• cost flexibility
• wheat
• optimal size