Economic Estimation of the Long-Run Cost Function and Economies of Scale for the Date Crop in the Holy Governorate of Karbala-Al-Husseiniyah District for the Productive Season (2021)

This research was conducted through personal interviews with farmers in palm orchards in Al-Husseiniyah District - Holy Karbala Governorate for the productive season (2021). The research aimed to study the cost structure of date production in the study area. The results of the research showed that fixed and variable costs constituted (32.3%, 66.7%) of the total costs of the research sample, respectively, and that the optimal size of production that reduces costs reached (19.148) tons, while the optimal area that can be used to achieve the optimal size is (7.27) dunams, The elasticity of costs reached a value of (1) at the optimal production level. The minimum price at which farmers sell dates was calculated (173,693) thousand dinars/ton. The supply function was derived in the long run, and it was found that there is a positive relationship between the price and the quantity supplied of dates. When the price is greater than (173.693) dinars / ton. The results of the study also revealed the percentage of achieved economies of scale and cost flexibility, and that average costs decrease until they reach below the optimal production level, while the achieved percentage of economies of scale reaches its maximum value (100%) at the same level. The results of the field research showed that the average price of a ton of the date crop reached (550) thousand dinars for the sample studied.