Estimating production factors returns for field and vegetable crops using oiler distribution theory

The study aims at estimating production factor returns for the field and vegetable crops using Oiler Distribution Theory. Second, the study also aims at the efficient use of economic resources. The model estimates were as follows. First, with regards to estimating production factors' returns for field crops to identify capital efficiency the findings revealed that the ratio between break even point value and alternative costs is greater than one. It had reached about 1.12, 1.13 and 1.17 for winter, summer, and the average respectively during the study period. That means that the production value at the break even point for capital resources is greater than its alternative costs. In other words, the use of that factor is at a level less than the level that would achieve economic efficiency. With regards to cultivated areas, its production value at the break even point is greater than its rent value. In other words, the use of that factor is at a level less than the level that would achieve economic efficiency. With regards to irrigation water, the society is bearing through the public budget LE O. 13/per cubic meter of irrigation water. However, the study findings also revealed the labor factor didn't have a significant impact in the agriculture production. This is due mainly to the unemployment and veiled unemployment that the agriculture sector has suffering from for a long time. Second, with regards to estimating production factors' returns for vegetable crops to identify capital efficiency the findings revealed that capital use is greater than the level that achieves economic efficiency. With regards to land use, the findings revealed that its use is less the level that achieves economic efficiency. With regard to the economic evaluation of agricultural production resources, the study findings revealed a number of observations. First, capital receives returns that are far less than its contribution in the p r oduction process in the field crops whole in the vegetable crops it receives more than its contribution. With regards to land it use is achieved at a level that is less than the level that would achieve economic efficiency for field and vegetable crops. Third, irrigation water the use of water should be more conservative. Fourth, surplus labor in the agricultural sector should be directed to agricultural processing projects, and there should be an expansion in the investment in agricultural project to absorb such surplus. Fifth, the structure of the current crop pattern doesn't achieve economic efficiency therefore, it should be reconsidered and developed.