Analyzing the Impact of Farm Size on Rice Production in Kunduz Province

Abstract

Kunduz Province is one of Afghanistan's most significant rice production hubs. Therefore, an empirical investigation into the benefits derived from farm size for enhancing the production efficiency of rice holds particular importance. This study was conducted with this aim in the rice fields of Kunduz, recognized as one of the primary centers of rice production in Afghanistan. Data on rice production and consumption were collected through questionnaires completed by 180 rice farmers in Kunduz during the years 2022-2023. Using dual theory, three forms of consumption functions—Translog, Generalized Domenech, and Generalized Leontief—were estimated, and the best functional form was selected using econometric criteria. The findings indicate that the Translog function is the most appropriate for rice production. The estimation of the structural parameter reveals the presence of economies of scale in the rice fields of Kunduz. However, due to the negative slope of the average consumption function, determining the optimal size of the farms under review is not feasible. Therefore, increasing farm size has the potential to reduce production costs and the final price of rice. Consequently, land consolidation and scaling up production are recommended as effective strategies to lower production costs.