Economic modeling and sensitivity analysis of the costs of inputs for alfalfa production In Iran: A case study from Hamedan province

The purposes of this study were to explain the costs of inputs utilized in alfalfa production, and to make an economic model in Hamedan, Iran. Data were collected from 80 alfalfa farms in Hamedan province using a face-to-face questionnaire performed in August and September 2009. Farms were selected based on random sampling method. Economic analysis was carried out by taking various cost components into consideration, including production costs and the total production value for alfalfa 7 year production life. Total production cost was about 14174 $ ha -1 , and gross production value was 17936 $ ha -1 . Irrigation Water costs were highest followed by machinery and human labour. The Cobb-Douglas production function was used to estimate the impact of inputs used on the alfalfa yield. The results indicated that machinery costs were the most significant input which affects the output level. The major MPP was drown for farmyard manure cost. The productivity of 6.81 kg $ -1 was obtained by dividing alfalfa yield by total production costs.