Determining the Optimal Size and Economic Efficiency of PaddyFarms inKB Province, Iran

ABSTRACT: In this paper the optimal size of rice farms using cost functions, technical, allocative and economic efficiency of paddy farms of Kohgiluye-va-Boyerahmad(KB) province were calculated using data envelopment analysis (DEA). The datawas collectedin sectional from by a questionnaire and using stratified random sampling. A total of 132 farmers were interviewed in the province. The mean technical, allocativeand economic efficiency of paddy farmers in KB province was estimated 62.1, 74.3 and 44.6percents respectively. The difference between the economic efficiency of the best farmer and the sample mean was calculated 55 percent. Thus, there is a huge gap in the ability of the farmers in gaining the maximum profit regarding the consumption amount and input prices and the product that can be optimizedby improving the efficiency of the farmers. The optimum size of paddy field in the province is about 1.7ha. Therefore, land utilization policies in the future shall be so that the integrity of the land and land parts approach the border of1.7ha.