Simulate the impacts of climatic factors on the efficiency of the production cost A study of wheat Cultivation in Iran

The aim of this study is to investigate how to influence temperature and rainfall on cost efficiency of wheat production. For simulate the effect of temperature and rainfall on cost efficiency of production, Information on pricing, yield per hectare, the production cost per hectare, the average temperature and rainfall during planting crops, for wheat and for 28 provinces were collected over a period of 10 years. by investigation, Different methods of stochastic frontier cost function with panel data, Stochastic Frontier "panel data" Method was selected. After estimating model, Delta method used to simulate the effect of rainfall and temperature variables on frontier cost. And the impact of these two variables was estimated on cost frontier and finally, on the cost efficiency. The results showed that, Khuzestan has highest cost efficiency and Yazd has lowest cost efficiency in wheat production. And increased temperature and rainfall in the range of climatic conditions up to about 4% is effective on the cost efficiency.