Simultaneous Assessment of Production Risk and Inefficiency Simultaneously in Ardebil Potato Farms

Agriculture is mostly a risky activity in less developed countries, and usually there is inefficiency associate with it. So, Simultaneous study of risk and inefficiency could lead into a more favorable outcome. This study was done to identify factors influencing risk and inefficiency of potato farms in Ardabil. The required data collected by questionnaire from 156 Ardebil potato farmers in 1391. To achieve the purpose, Kumbhakar (2002) and Jaenicke (2003) models that are based on Aigner et al (1977) and the Meeusen and Van Den Broeck (1977) frontier model, were estimated. According to the results, water does not affect production risk in the farms. labor and machinery, reduce production risk and seed increase it. Seed and labor increase the efficiency average and machines and water decrease it. Producers Gender does not affect the efficiency average and efficiency variance. Therefore, increased using of labor for risk reducing and efficiency increasing in these units is recommended.