The Application of Breakeven Analysis in the Agricultural Management of Marvdasht Irrigated Wheat Farms

Breakeven analysis is one of the most important existent tools for decision-making in agriculture. This technique used for analysis of different budget components about irrigated wheat crop in Marvdasht township. The required data and information were collected via 154 questionnaires and using the stratified random sampling method during 2004-2005. Results show that farmer's profit (Rls. 479.8 per Kg. of crop) is about thirty percent of the cost price of crop (Rls. 1570.2). The breakeven analysis for factor prices, show the levels of factor prices in existent conditions were much lower than breakeven prices (especially in the case of the factors of insecticides, phosphate fertilizer and urea fertilizer) in such a way that the ratio of mentioned factor prices in existent conditions to their breakeven prices was 0.02, 0.07 and 0.09 respectively. This has caused non-optimal and very much usage of factors in many cases.