The Effects of Price Variability in Wheat Seed on Farm Organization

Abstract

The main objective of this study was to determine the effect of changes that may occur in seed prices in wheat seed production inTR83 region of Turkey on farm organization. Data were collected from 72 farms growing wheat seed by using questionnaire. Conventional economic analysis approaches were used for the economic analysis of the sample farms. To determine the effect of changes in seed prices on optimum plan, variable price programming method was performed. The results of the study revealed that economic performances of large-scale farms are better than that of small-scale farms. Supply of wheat seed was inelastic in both groups. In the research area, supply elasticities of small and large-scale farms were 0.78 and 0.02, respectively. The study suggests that policy makers should pay attention the supply elasticity of wheat seed and their variation associated with farm size and ensure the security of wheat supply by adjusting the prices based on elasticity. © 2016, Universidade Federal Rural de Pernambuco. All rights reserved.