Analytical Economic Study To Direct The Farmers To Land Resources In Agricultural Production:

ANALYTICAL ECONOMIC STUDY OF FARMERSLAND RESOURCES ALLOCTION FOR AGRICULTURAL PRODUCTIONSUMMARY AND CONCLUSIONSThe Farmers’ decision making concerning theutilization of land resources is considered an important andcrucial decision, not only for the Farm but also for nationaleconomy. The determination of the area allocated to growing aspecial crop depends on various variable factors, whichinteract to affect the farmersTdecision.The effect of various economic and social factors on thefarmer’s decision were studied.If the Egyptian agricultural policy is to be effective andefficient to perform its role for the interest of the nationaleconomy, it is then necessary to be well informed of natures ofthe Farmers’ decisions making, and the factors that affect.~them in their decisions about crop areas. Studying thesefactors in the proper and complex way, as they are in reality,rather than studying each factor independently and its effecton land utilization decision making was not studied in Egyptbefore.The objectives of this study are:l.The investigation of the nature of the decision making of thefarmer concerning the allocation of his land resources andfactors affecting his decision.2. Determining the differences in decision making areaallocation to crops in II Giza II· and n Gharbia ••Governorates.3.Determining the relation between the area of land allocatedto particular crops and the independent economic and othervariables such as:a) Prof it making,variations type ofproduction pricesb) Costs of production, c) Environmentalland, water and drainages. d) Matching thewith the facilities, e) Evaluation of thefarmer for the following needed for his production Area,feasibility of loans and facilities of production). f)Personal and social variations, e.g. education, family size,total ownership volume, cattle ownership, sandard of living anysocial activities.4. Investigating the regression relation between allocated landarea for each crop under study and all affecting variables, inorder to figur”e out the most important factors affecting hisdecision, and the most important differences between the natureof decisions in the two governorates Giza and Gharbia.Research Zone:Two Governorates were chosen Giza Governroate for itsvegetable production and for being near large markets andGharbia Governorate for its variety of production includingstrategic crops under Government control as cotton and rice andhaving traditional from life.Society and sample of research:-The data were collected from a random sample of landholder, who were classified into three land holding sizeclasses. The sample size was determined to be 3% of the totalnumber of land holders in the villages under research, therewere 131 farmer of which 66 from Giza governorate and 65 fromGharbia Governorates.The data was collected through a questionnaire,directed to the land holders.3•.The results were as follows:First there were a differences between the twoGovernorates concerning according to the factorsaffecting farmer’s decisions in land allocation tovarious crops.In Giza Governorate the most important factors weresatisfying financial needs family food needs, theselling price of the crop before planting it.In Gharbia the most important factors were: animalned for feed, Government policy and orders, satisfyingfamily needs, large portion of crops are turned to thegovernment, for marketing.Therefore we conclude that crop land allocationfond in villages near the city is different from that intraditional ones.According to the production goals affecting thefarmer1s decision, it was found thatAthere were adifferences in the importance and rating of the factorsthat govern the farmer’s decision in both zones.First the traditional griculture in which the humanbeings and animals work together in the cultivationprocess was found in t. Gharbia 11, while on the otherhand, Giza II governorate was the area where the farmersprefer to have the financial needs needed for productingcrops with fast money cycle due to the easy process ofmarketing and being located near selling markets.Second concerning some of the economical factors,affecting the decisions about land allocation three mainfactors were studied·~Net Agricultural return per Faddan.-Return per pound of Capital invested.- Return per pound ivesteded per month.Results showed a high value of these factors withrespect to vegetables and clover.Third: After revewingthe rsults concerning the relationship between areaallocation in production of every crops as a dependentparameter and various independent parameters, one ofthese most important parameter that had a negativeeffect on area planted was the increase in costs ofproduction.Fourth: according to the resul~s of the statisticalgrouph Regression Analysis of the farmers decision todetermine the cultivated area and all other independentparameters for every crop at the two governorate usingthe” Step-wise Regression Analysisll•In Giza the farmer decision is a personal oneindependent of any law or government involvement. Themost iportant factors in decision making are totalreturnes, crop price, total costs having off farm workavailability of seeds, fertilizer, not return perFaddan, planting period, breeding animals, availabilityof agricultural extension services and finally theability of adoption of new ideas.For Gharbia~most important factors in farmer’sdecision was government policy. Concerning rice andcotton, which affect indirectly in his decision aboutother crops~ also due to the crop rotation. We find thatany decision out horized from government), aboutcotton will affect other crops proceeding or followingthe cotton will affect other crops preceding orfollowinng the cotton crop. Such a system turns thefarmer to an excutive unit rather than a decision makingunit. It’s worthwhile to say that farmer characteristicsand personal changes related to than disappear totallyas parameters affecting their decision making, it wsalso seen the importance of other parameters like,changing costs, renting animals,being convinced of thecrop rotation and land holding size and satisfaction offamilIytc’osnsuimmpptoirotna.nt to indicate the social andbehavioural parameters had less effects on decisionmaking than economic factors.