An economic assessment of the effect of agricultural extension activities on increasing production and farmers’ revenue: The case of irrigated wheat Production-Extension Model Sites in Iran

Abstract

Abstract Agricultural extension is a key instrument to accomplish sustainable agricultural development by improving knowledge penetration in the agricultural sector. (EMSs) are a new extension approach in agriculture to create proper models for empowering farmers. This research analyzes the effect of EMSs on increasing irrigated wheat production versus the previous cultivation period. The statistical population was composed of the main farmers of irrigated wheat EMSs (N = 355) throughout Iran. The sample size was determined to be 180 by Cochran’s formula. The sample was taken by the stratified random sampling technique with proportional allocation. The results of the estimation of production cost function and extension activities cost showed that the variable of extension activities significantly affected irrigated wheat yield with a coefficient of 0.32 at the P < 0.01 level. The extension investment return in the EMSs was 0.66 t/ha. Based on the results, out of the final production value of the extension services provided to the main farmers, 13.3 percent had been spent as the cost of extension activities and 86.7 percent had been net profit gained by farmers. The results of the correlated t-test for farmers’ behavior before and after receiving the extension services showed significant differences in the amount of seed consumption, tillage cost per ha, labor cost per ha, irrigation frequency, the rate of biofertilizer and urea application, crop waste during harvest, the production cost of irrigated wheat per kg, crop yield, and income and net production profit per ha.