Agricultural Economics and Development

Agricultural Economics and Development

Determining the Economic Optimal Use of Water and Environment-Polluting Inputs for Irrigated Wheat Production (Case Study: Seidan-Farough Plain, Marvdasht Township)

Authors
A. Fallahi
S. Khalilian
M. Ahmadian
10.30490/aead.2014.58938
Abstract
Optimal use of resources, maintaining the environment quality, and improving the ecosystem health has been some fundamental components of sustainable development. Yet, according to the previous studies, many agricultural systems are being expanded with unacceptably high environmental costs in the process of transition from traditional to modern agriculture. This research aims to determine the economic optimal use of water and environment-polluting inputs for irrigated wheat production in Seidan-Farough Plain, Marvdasht Township. Required data is related to the crop year 2010-2011 collected through interviews and 106 questionnaires using two-stage cluster sampling method. The most important results show that farmers have used water and the polluting input of urea fertilizer as much as 2643 m3 and 67 kg per ha more than economic optimal amount, respectively. It is therefore recommended to use modern irrigation systems with higher performance than mere relying on price instruments of water management which have largely been inefficient based on experience in this area. In the case of urea fertilizer, pursuing targeted subsidies plan of inputs considering a reasonable profit margin for farmers beside extension efforts may have useful effects in order to optimize input consumption. Moreover, the findings of the research show the optimal use of poison by the farmers in the region.

JEL Classification: D24, Q10, Q25, Q53

Keywords:
Economic Optimal Use, Environment, Translog Production Function, Agriculture, Wheat