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An Economic Study of the Efficiency Analysis for Rice Farms in using the Economic Resources at Behaira Governorate
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Abstract: ـــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــ
• Egyptian Journal of Agricultural Economics. Egyptian Association of Agricultural Economics. Vol.(26), No.(1), Cairo, Egypt, March 2016.
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Rice is one of the major staple food commodities in Egypt due to its importance in the Egyptian diet. In spite of the scarcity of some limited resources used in producing rice (e.g. water resources), but the efficiency of using such resources is still low since the average productivity per one cubic meter of irrigation water used in producing rice does not exceed 0.799 kg/m3. In this sense, the current study attempts to determine the size of the efficient rice farm, determine the optimal amounts of resources that meet the technical and economic efficiencies in rice production, determine the amount of resources that should be reduced or increased to achieve economic efficiency in rice production, and examine the impact of economic efficiency on some economic variables associated with this strategic crop. In order to achieve these objectives, the Data Envelopment Analysis (DEA) was used for primary data collected in the summer season of 2015 for rice farms in Behaira Governorate. These rice farms were classified based on their area into three categories. The results of the study revealed that Dakahlia and Kafr El-Sheikh Governorates ranked first in terms of the area cultivated by rice whereas, Dakahlia and Behaira Governorates ranked first in terms of rice productivity during the period (2014-2005). Moreover, the technical efficiency (TE) under the constant returns to scale (CRS) ranged between about 90.5% for the second category of rice farms and 94.3% for the third category of rice farms (of the biggest size) indicating the importance of the economics of scale. Besides, the third category of rice farms achieved the highest economic efficiency reaching about 86.5% whereas, the first category of rice farms (of the smallest size) achieved the lowest economic efficiency reaching about 78.2%. these results indicated that the bigger size of rice farm, the higher technical efficiency can rice farm achieve. The study results suggest that, in order to achieve the economic efficiency, the economic resources used to produce rice (whether for the three rice farm categories or for the total study sample) should be reduced.
Furthermore, the total value of saved resources reached about L.E. 1.033, 3.095 and 4.302 thousand for the first, second and third categories of rice farms, respectively. These savings increased the net revenue by about 16%, 12.3% and 12.5% for the first, second and third categories of rice farms, respectively. On the light of these results, the study recommends encouraging consolidation for the first category of rice farms (less than 3 feddans) to overcome the problem of small farm size and to reach the desired economic efficiency, as well.
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| URL |
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| Publication year |
2016
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| Pages |
47 - 58
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| Availability location |
مكتبة معهد بحوث الاقتصاد الزراعي-7 ش نادى الصيد - مبنى الهيئات والشركات - الدقي- الجيزة (الدور الرابع)
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| Availability number |
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| Organization Name |
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| City |
القاهرة
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| serial title |
المجلة المصرية للاقتصاد الزراعي
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| Web Page |
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| Author(s) from ARC |
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| Agris Categories |
Production economics
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AGROVOC
TERMS |
Economic resources.
Efficiency.
Rice.
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| Proposed Agrovoc |
Data Envelopment Analysis (DEA);Scale Efficiency (كفاءة السعة);Technical Efficiency (الكفاءة الفنية);Economic Efficiency (الكفاءة الإقتصادية);
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| Publication Type |
Journal
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