Economics of Potato Production for Autumn Season 2015-2016 (Baghdad Governorate as A Practical Case)

Abstract

The research aimed at estimating the production function and the total cost function, as well as measuring the efficiency of resource use, technical, economic, price and cost efficiency. The study was based primarily on a simple random sample of (155) farmers in Baghdad governorate for the autumn season (2015-2016), The double logarithmic formula was the most suitable for the production function. The results of the resource efficiency criteria indicated that potato farmers were efficient in using resources (seed, phosphate fertilizer, human labor) and were inefficient in using irrigation and pesticides. While the cubic formula was more suitable for the total cost function according to the statistical, econometrical and economical tests, and from it we showed that the optimum size of production and size that maximize profit are (119.069, 143.398) ton consequently. Technical, economic and price efficiencies were estimated at (34.25933, 34.25937, 73.521)% consequently, while cost efficiency was estimated at (0.454), and the net farm income that achieved over all the sample less about (10380.741) thousand dinars than that achieved at optimal size. The research concluded that the quantity of seeds had the greatest impact on potato production and that there was waste in using the available resources, which led to actual production being less than optimum production. The research recommends that the related institutions should work to provide a good quality potato seeds to cover the needs of local farmers, from good sources in a timely manner and at the right price to increase the production and productivity of this important crop and reduce production costs. As well as the protection of the local producer by adopting price policies that grant best income of farmers.