Economic and Financial Evaluation of Rural Land Consolidation of Haraz Plain in Iran

Traditional land consolidation has a particular importance in economic development, since it leads to increase in production and income, and saving in labor and machinery time. This study examines the financial and economic impacts of land consolidation in 105 hectares of rural lands of Haraz plain. The results indicate that with the implementation of the project the rate of net profit in rice farming will raise to 30.4 percent per hectare in comparison to pre-project time. There are savings in family labor force, hired labor force and machinery after the implementation of the project which are equal to 18.36, 83.58, 33.33 percent respectively. The corresponding time for cultivation of lettuce after project implementation amounts to 428, 300, and 25 hours per hectare. Also it is estimated that the internal rate of return for 30-year project is equal to 39.98 percent; thus, in comparison to the present rates, the project is justifiable.