Efficiency Of Agricultural Bank's Credits Usage (Case Study of Sarab)

Capital is one of essential elements in agricultural production process and the bank system is the most important resource for meeting this need, but with respect to investment limitation that our country and producers are facing, efficient usage of capital resources that are given to farmers is tremendously important Because it will result in meaningful increasing in production and setting a developed and proper production system. According to what is mentioned, studying farmers` efficiency in using production element, specially capital can be of use. The goal of this project is searching into efficiency of capital using by farmers of Sarab. According to that we applied Cobb-Timer approach which used a Cobb-Doglass frontier production function and extracted capital efficiency. As it turned out, capital efficiency of under-studying area was 71.62 % and farmers applied 164937.47 Rials extra capital resource. It means that any improvement in efficiency and management in production process, can increase productivity and yield.