Role of Efficiency in Transferring Climate and Price Shocks on Farmers (Case Study: Razan Township)

Document Type : Research Paper

Authors

• H. Haji Mirza ¹
• Reza Shakeri ²

¹ Master of Agricultural Economics, University of Tehran.

² Ph.D. Student in Agricultural Economics, University of Tehran

Abstract

The purpose of this study was to investigate the role of efficiency in the transmission of climate and price shocks on farmers' behavior. The hypothesis of this study is that efficient farmers in the agricultural sector are more resilient and less vulnerable to climate and price shocks. In order to test this hypothesis, data envelopment analysis approach and positive math planning model were used. Data needed for this purpose were collected from the Agricultural Jihad questionnaires in Razan township, north of Hamedan province. The findings indicate that, due to the effects of climate change, farmers' groups are less effective than inefficient farmers and have more resistance. Also, farmers are less effective than price changes, which reflect the stable situation of this group of farmers in relation to these shocks. Therefore, it can be inferred that moving towards a productive boundary can be a means to reduce the impact of climatic hazards, markets and fluctuations in agricultural production in the studied area.

Keywords

• Efficiency
• Data Envelopment Analysis
• Positive Mathematical Programming

20.1001.1.20086407.1399.12.47.1.5

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