Determination of the efficiency of resource utilization of agricultural enterprises in urban sprawl; in case of Konya Province

Abstract

The economic profitability explains operational capital usage efficiency of the agricultural enterprises in the urban sprawl according to the opportunity cost. Agricultural enterprises show different structure according to the characteristics of the environment, and it is observed that the enterprises in the urban sprawl are different from those in rural areas. Because of the loss of rural character under the pressure of urbanization, there are significant differences in the capital structure of agricultural enterprises in urban sprawl in terms of building and land capital. In this study, economic profitability is determined as low as 1.16%. In study area, 91 sample enterprises are identified according to stratified random sampling method. Data Envelopment Analysis is used to determine the technical effectiveness of agricultural lands in the urban sprawl. In examined enterprises, the average technical efficiency score per enterprise is calculated as 0.59 (0.589) as a result of the analysis. This value explains that 41% of the variables in the model are inactive. The reason of this ineffectiveness is determined as the interest and depreciation of land and housing capital. Pure technical efficiency ratio which describes the suitability of the combination of the production factors is determined as 0.70 and the scale efficiency which describes the proportional cohesion between production amount and used resources is determined as 0.83. In order to eliminate this inefficiency due to the high level of housing and land capitals, the entrepreneurs should be directed to ensure that they use the resources effectively.