Economic Aspects of Energy Balance in Rainfed Wheat Production in Saqqez County

The efficient use of energy inputs in agricultural production processes enhances farm efficiency, improves factor productivity, and ultimately reduces costs and the negative environmental impacts of inputs on natural resources. Given the limited availability of resources, studying the economic aspects of energy balances in the agricultural sector is crucial. This research aims to analyze the economic aspects of energy balance in rainfed wheat production in Saqqez County. Data were collected from 270 farmers in the region, and input and output (wheat) values were converted into energy equivalents. A translog production function was estimated to determine the marginal product and elasticity of production factors. The results revealed that labor, pesticides, and machinery energy significantly impact wheat output energy. While the elasticity values confirm the economic use of fertilizer and labor, labor is considered non-economic. Energy efficiency and productivity indices were calculated at 3.02 and 0.11 kg/MJ, respectively. The findings suggest that farmers can enhance production and profitability through the economic use and allocation of resources, as optimizing input consumption improves farm efficiency and factor productivity.
Introduction
The agricultural sector's heavy reliance on fossil fuels and the limited availability of energy resources have prompted researchers to evaluate energy consumption efficiency in crop production across various regions. Optimal and efficient use of energy inputs can lead to increased productivity, reduced environmental impacts, and the establishment of sustainable food production systems. Efficient energy use in agricultural production processes improves farm efficiency and factor productivity while minimizing costs and the adverse effects of inputs on natural resources and the environment. The scarcity of resources underscores the importance of studying the economic aspects of energy balances in agriculture. In Saqqez County, despite the large area dedicated to rainfed wheat cultivation, the low production output highlights the potential for increased productivity. Therefore, investigating energy balance and its efficiency is essential. This study focuses on analyzing the economic aspects of energy balance in rainfed wheat production in Saqqez County.
Materials and Methods
Data were collected from 270 farmers in Saqqez County, and input and output (wheat) values were converted into energy equivalents. A translog production function was estimated to examine the relationship between input energy and output. Production elasticity was calculated to determine the economic or non-economic use of inputs. Production elasticity measures the change in output resulting from changes in input consumption. When the marginal product is less than the average product, production elasticity ranges between 0 and 1, indicating the economic use of a factor. Additionally, energy efficiency and productivity indices were calculated based on input and output energy equivalents.
Results and Discussion
The translog production function estimation revealed that labor, fertilizer, pesticides, and machinery energy significantly affect wheat output energy. The R² value of 0.76 indicates that 76% of the variation in output energy is explained by these input variables. The energy elasticity of machinery, fertilizer, and seeds was greater than one and positive, confirming their economic use. In contrast, labor input elasticity was negative, suggesting that its overuse places it in the third stage of production. Overall, the results confirm the economic use of fertilizer and seeds, while labor is considered non-economic by farmers. Energy efficiency and productivity indices were calculated at 3.02 and 0.11 kg/MJ, respectively.
Conclusion
Although seeds and fertilizer are generally used economically, some farmers apply these inputs at non-optimal levels, either in the first stage (non-economic) or the third stage (excessive use). Negative elasticity for labor indicates its overuse, driven by its abundance and low cost, which harms productivity and the environment. Farmers can reduce labor consumption and optimize the allocation of other inputs to lower costs and increase profits. By adopting economic principles in resource use, farmers can enhance production and profitability, as efficient input consumption improves farm efficiency and factor productivity. These findings highlight the importance of optimizing energy inputs to achieve sustainable agricultural practices