Iraqi Economists Network

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Wheat Production Improvement Program in Iraq: Cost-benefit and Adoption Analysis with Case Study from Babylon Region. By Aymen M. Daham *


This research work was supported by the German Agency for International Cooperation GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH) and implemented in cooperation with the Iraqi Economists Network. The activity is part of the GIZ project Private Sector Development (PSD) which is being implanted in Iraq since 2018. The objective of this particular activity is to upgrade research and publication capabilities of junior Iraqi economists and scholar and to enabling them participating on the scientific economic discourse in their home country. Ultimately, the activity aims at building new capacity for the preparation of the policy decision making process leading to improved formulation of economic policy measures, which contribute to reduce unemployment and to enhance the role of the Iraqi private sector in achieving sustainable development. The author of this paper was coached and supervised by Dr Fadhel Rida.**




The National Program for the Development of Wheat Crop Production aims to adopt and use modern technologies, including laser leveling, certified and high-quality seed, recommended fertilizers, pest and disease control and management as well as the introduction of new high yielding, diseases resistance and salinity tolerant varieties. The ultimate objective is to increase the productivity per unit area and ensure food security and self-sufficiency and to reduce the large yield gap in the of main grain crops, and to cease the reliance on import of major cereal crops. The duration of the implementation of the National Program for Development of Wheat in Iraq is ten years, subject to renewal, to reach a total area of five million donum (donum =0.25 ha) to adopt the technology package.


This study aims to present economic analysis of wheat improvement program on the farm level using cost-benefit analysis CBA of adopter and non- adopters of the technology package. The research examines the main determinants that affect and influence the famer decision to adopt the technology package using logistic regression model. The results of the cost-benefit analysis (CBA) shows that the net returns of the adoption of the technologies amounted to ( 393,932) dinars / dunum, which is 64% higher than the net returns of non-adoption of which estimated at  (239,760) dinar / dunum, and thus indicates the adoption of the technology package is  profitable and the estimated internal rate (IRR) of return was 16.5% in comparison with capital in banks and the benefit-cost ratio of 2.25 indicates that one dinar investment in the technology returns 2.25 dinar. The logistic regression model shows that farm type (luminous and traditional farms) and productivity influence the farmer decision to adopt the technology package. The logistic regression of several household attributes were not statistically significant and indicated that they don’t influence the adoption decision.

Further research is required to expand the survey sample to attain more representative sample data and to include adopters and non-adopters from several governorates and should include policy variables.

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Aymen paper-Wheat Production Improvement Program in Iraq-final 3

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