An economic and econometric analysis of the wheat production function in Samarra District during the 2023 production season
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Abstract
This research aims to estimate the wheat production function in Samarra district using field data for a sample of wheat farmers in Samarra district amounting to (65) farms with sprinkler irrigation (40 sprinklers) representing (8%) of the sample population in order to analyse the impact of different production factors on production quantity, and determine the optimal combination of resources to maximise profits. The research assumed the existence of a positive, statistically significant relationship between wheat production quantity and several production variables, including: quantity of seeds, quantity of fertiliser, number of hours of human work, number of hours of automated work, quantity of irrigation water, and cost of pesticides. The traditional production function was used in its logarithmic form and analysed standardly using the ordinary least squares (OLS) method. The estimated model demonstrated statistical and standard significance, with an adjusted coefficient of determination of 0.812, indicating that the production variables can explain 81% of the changes in production entered into the model. The optimal combination of production elements was also reached, which achieves a production of (1046.7 kg/dunum) and a net profit of (401,590.4 dinars/dunum), which is much higher than the actual profit achieved. The research concluded that wheat farms in the research area operate at the first stage of the production function (decreasing returns), suggesting the possibility of improving efficiency through resource redistribution. There is also a clear gap between the actual and optimal use of production elements. The research recommended directing farmers to use optimal combinations of production inputs to achieve the highest production and profitability.
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