Economics of alternative systems for producing wheat and lentils in Jordan

Abstract

Abstract The government of Jordan has a goal of increasing the production of wheat and lentils in the rain-fed region of the country. Several policies have been suggested to provide incentives for farmers to adopt and implement alternative production systems. This study was conducted to determine if production systems using commercial fertilizer and increased levels of mechanization are economically viable alternatives to the traditional systems. Personal interviews of farmers in the region who used traditional as well as alternative production practices were conducted. Maximum likelihood methods were used to estimate response functions and enterprise budgeting methods were used to conduct economic analysis. Economically optimal levels of fertilization were determined. Wheat grain, wheat straw, lentil seeds and lentil hay are all economically important products in the region. Alternative production systems that do not preserve the value of the wheat straw and lentil hay are not likely to be economically competitive.