Production and Cost Functions for Wheat Crop in Dakahlia Governorate

The wheat crop is one of important strategic which used by the producing countries as a mean of political and economic pressure on developing countries. Where self-sufficiency rate is estimated at about 56% during the year 2012/2013, and the problem in this research is concerned about unjustified increase in the cost of producing wheat crop as a result of rising input prices, while production did not increase the selling price of the crop at the rate commensurate with the high prices of production inputs. The research aims to identify some of mechanisms that causes increase in production volume in Dakahlia Governorate, and reduce the size of the food gap of this crop by studying the functions of production and cost functions to identify the reasons for the high production costs. The study revealed that functions of production of wheat crop study sample for each category possessory from three categories of possessory, that farmers Category possessory first (less than feddan) sample study produce in stage non-economic terms that  flexibility productivity for the class of possessory first was 1.18 which is the first phase of the law of diminishing returns that explained production flexibility and presence of extravagance in the use of production elements and therefore must work on the use of the optimal combination of the elements of production until they get higher production and greater net profit. While farmers possessory of second category (from one to three feddan) and farmers possessory of third category (greater than three feddan) producing in the economic phase that flexibility productivity was about 0.86, which consider second phase of the law of diminishing returns. When estimating the cost functions of the three classes of possessory its obvious that farmers for possessory second category (from one to three feddan) are more farmers in order to achieve economic efficiency in terms of the optimal use of agriculture economic resources. In light of this the research conducted that:    
1- Need to work on reducing the prices of production inputs, especially for the wheat crop as a strategic crop important.
2- Activate the role of agricultural extension in order to work to provide guidelines for agricultural farms, which in turn leads to optimal use of agricultural resources and thus reduce production costs.
3- Raise the selling price of the crop to suit the high prices of production inputs.