Estimating Profit Efficiency of Saffron Cultivation in the Torbat-E Heydarieh County

In this study, profit efficiency and its influence factors were analyzed using stochastic frontier production approach and simultaneously estimating the behavioral profit model of saffron farms. For this purpose, information from 81 farmers that were interviewed randomly in 2014 was used. The results showed that the average profit efficiency of saffron farms was 61.4 percent and 51.3 percent of saffron farms have lower profit efficiency than 50 percent. Based on the results of the frontier profit function, pesticide costs have a negative effect on the profit of saffron farms and the cost of water, machine, labor cost, years of experience, farm size and participation in promoting class are positive and have a significant effect on profit efficiency. Based on the results of this study providing the necessary conditions along with easier and cheaper access to modern equipment and also encouraging farmers to use optimal allocation and reduce costs is an effective step to improve the profitability of saffron farms.