Efficiency analysis of wheat production in Baghlan Province: a data envelopment analysis (DEA) based approach

Wheat is a crucial agricultural commodity in Afghanistan, which is pivotal in ensuring food security and driving economic development. Given its strategic significance, maximizing resource utilization and planning to boost production efficiency have become imperative. This study aims to analyze the economic efficiency of wheat production in Baghlan province, employing the data envelopment analysis (DEA) method. Data for the analysis were gathered through simple random sampling and the completion of 300 questionnaires during the agricultural year 2023. The findings of the study reveal that on average, technical, pure (managerial), scale, allocative, economic, revenue, and profit efficiencies stand at 78.5%, 82.7%, 94.7%, 73.8%, 60.6%, 75.6%, and 59.2%, respectively. Moreover, 59.7% of the surveyed farms operate at increasing returns to scale (IRTS), 17.7% at decreasing returns (DRTS), and 22.7% at constant return to scale (CRTS), suggesting that scaling up production could enhance efficiency. The results indicate that farmers in Baghlan province can reduce production costs by 43.2%, and wheat production can increase by 21.5% without additional inputs. These findings highlight the need for policy interventions, including strengthening extension services, providing financial support, promoting modern agricultural technologies, and facilitating knowledge-sharing among farmers. Encouraging cooperatives and contract farming can help small-scale producers achieve economies of scale and improve market access. Implementing these measures can enhance wheat productivity, increase farms’ incomes, and reduce Afghanistan’s reliance on imports, contributing to long-term agricultural sustainability.