Abstract
The purpose of the current study was to assess the allocative, technical, and economic efficiency of wheat crop produced in Punjab. Primary data were collected through a well-structured questionnaire. The economic efficiencies were estimated by the DEA technique using the farm level data gathered from 240 wheat growers of the Rajanpur district of Punjab, Pakistan. According to the results of the study the estimated efficiencies results show that the mean technical efficiency of the wheat crop is about 70%, the mean allocative efficiency is 74%, and the mean cost efficiency is 52%. The findings revealed that Pakistani wheat farms could minimize production costs by up to 30% to ensure the same level of production, using resources in optimal proportions and increasing technical efficiency. The findings also reveal that the current level of wheat production can be amplified by up to 30% by mollifying the technical efficiency of wheat crop.
Highlights
The development of the agricultural sector depends on the efficient and effective use of resources to achieve higher levels of agricultural production
The finding of the study shows that the mean effort-oriented measure of technical efficiency is 0.70, which showed that on mean 30% of the effort to be minimized by enhancing the technical efficiency of the fields to achieve the monitored level of output of wheat
The mean result of effort-oriented allocative efficiency is 0.74, which indicates that medium-sized wheat farms can minimize production costs by 26% by using resources in a proper way, even without increasing technical efficiency, given their respective values
Summary
The development of the agricultural sector depends on the efficient and effective use of resources to achieve higher levels of agricultural production. Cereals, including wheat, rice, and corn are the staple foods for most of Pakistan's population. Wheat cultivation is one of the main crops in Pakistan. The fertile lands of Punjab are best suited for cultivation and development. In the context of constant population growth, there is an urgent need to improve wheat production, so many factors affecting wheat yields, such as farm size, seeds, M. Nawaz et al / Journal of Economic Impact, 2(1), 37-42, 2020 verandas, farm size, land preparation, agricultural machinery and social environmental factors, namely infrastructure, markets, politics, state, and international trade. Structural factors consist of income of the household, number of family members, debt access, landholding, sex structure of the labor force, farm and off-farm income, and variables of climate. Skilled farmers have many sources of earning and they are not entirely dependent on agriculture for livelihoods (Rahman, 2002)
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