An Economic Analysis of the Costs of Producing Tomato under Greenhouse in Anbar Governorate for the Agricultural Season 2019-2020

Abstract

The research aims to analyze the costs of producing tomato under greenhouses in Anbar Governorate for the agricultural season (2019-2020), based on field data of 16 samples selected randomly. The results of the analysis shows that fixed costs constitute about (44.20%), while variable costs constitute about (55.80%) of the total costs. The average production costs in the research sample are about (109808) dinars/ton. The long-term cubic function was the best among the functions that express the relationship between production costs as a dependent variable and production and the number of greenhouses on the farm as independent variables. This is due to its analogy with the logic of economic theory. The modified coefficient of determination in it R-2 reached (0.98). It is found that the optimal size of the farm includes (3) greenhouses. It achieves the optimum production volume of (21.17) tons/farm. The average cost is about (64193) dinars/ton. (62.5%) of the farmers in the study sample achieve capacity savings, while (31.25%) do not achieve any savings. As for the percentage of farmers who achieve low rates of economic efficiency, they reach about (6.25%). The supply function shows that the elasticity of supply decreases with the increase in production. This means that the farmer faces great difficulty in controlling production in the event of price changes. The study recommended the needed to raise the marketing efficiency of the products of the agricultural sector and to protect the local product to help the Iraqi farmer attain the ability to compete.