Estimating the Technical and Scale Efficiency of Wheat Farms in Menoufia Governorate Using Data Envelopment Analysis

Abstract

Wheat production constitutes a strategic agricultural commodity critical to Egypt's food security and economic sustainability. This study evaluated the technical and scale efficiency of wheat production in Menoufia Governorate during the 2024/2025 agricultural season using Data Envelopment Analysis (DEA). A multi-stage stratified random sample of 382 farmers, classified into three landholding categories, was surveyed. Results demonstrated significant disparities in yield per feddan, total production costs, and net returns across landholding categories, with larger holdings achieving substantially higher profitability. Land utilization exhibited high efficiency with minimal waste (0.55%), whereas considerable resource wastage was identified in tractor mechanization (23.59%), pest control operations (20.18%), and pesticide application (16.54%). Average technical efficiency under variable returns to scale was 96.3% at the sample level, indicating potential resource reduction of 3.7% without compromising production. Scale efficiency analysis revealed that 30.89% of farms operate under increasing returns to scale, suggesting expansion opportunities. Allocative efficiency reached only 70.90% at the sample level, indicating 30.1% potential cost reduction through improved resource allocation. At the governorate level, potential savings from enhanced efficiency were estimated at approximately 74.29 million Egyptian pounds, representing significant opportunities for vertical expansion and sustainable resource utilization. The study concludes that integrated management strategies targeting rational input utilization, particularly in mechanized operations and pesticide application, coupled with strategic resource reallocation, could substantially enhance economic efficiency and optimize agricultural resource use in Menoufia Governorate.