Wheat is the major food in Iran and usually considers as strategic product affecting social, economical and political affairs. Particularly, its self-sufficiency has been always an important issue for Iranian government. The government intervention on wheat market has not been efficient, and causes to reduce welfare . Thus, study of production conditions is useful to achieve this purpose. The objective of this study was to estimate the technical efficiency of wheat farms in south west of Iran by estimating stochastic frontier production function. This study was consisted of two steps. In the first step, a translog production function was estimated then the technical efficiency of each farm was calculated. In the second step, technical efficiencies were regressed on set of managerial dummy variables to evaluate the influence of each variable on the level of technical efficiency. These variables were consisted of trickle irrigation system, extension activity (education and experience) and farm size. The results indicated that all these variables had positive effect on the technical efficiency level with statistically significance. The results were also indicated that technical efficiency improvement may consider as government intervention in wheat production in order to extend wheat supply and increase social welfare.
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