An economic study to estimate the cost functions of barley crop production in the Al-Jabal Al-Akhdar region for one agricultural season (2002-2006).

doi:10.21608/fjard.2009.197048

An economic study to estimate the cost functions of barley crop production in the Al-Jabal Al-Akhdar region for one agricultural season (2002-2006).

Document Type : Research articles.

10.21608/fjard.2009.197048

Abstract

ALJABAL ALAKHDAR region is considered as one of the most important in
barley production. Therefore, this study is aiming to estimate the ideal and maximum
production (the production that minimize cost and maximize profit) and the deviation
of the actual production from each one. This could be achieved through primary
references, such as collected data (field study) during the season 2006-2007 and on
the secondary references (data) from the official government agencies of Libya .
The study has concluded that using quadratic form cost functions in the three
municipalities were best fit compared to function using cubic or linear forms. It was
obvious from equating average cost with the marginal cost, that those farmers who
are in charge of barley production in Marj, Green mountain and Derna- Qubah
municipalities did not reach the ideal production which reduces cost by approximately
0.725 ton per hectare , 0.669 ton per hectare and 0.497 ton per hectare respectively
.The production which minimize cost was approximately: 1.79 ton per hectare, 1.67
ton per hectare, and 1.49 ton per hectare and 1.76 ton per hectare where as the
average production of barley harvest in these two municipality were approximately
1.065 ton per hectare, 1001 ton per hectare, 0.993 ton per hectare in these three
municipalities, respectively.
The results of study also showed that the average revenue had reached nearly
(577, 555, 538) diner par hectare and total cost reached approximately (479, 479,
467) diner per hectare in Marj, Aljabal Alakhdar and Derna – Qubah municipalities
respectively.