The Formation of Fuel Production Unites Based Economy in Rural Areas of Seemacan (Fars province)

At present, agriculture is being considered as a major economic activity in Iranian rural settlments. It provides essential needs of the settlers, creates job opportunities, increases revenue as well as plays a prominent role regarding the peasant household’s economy. However, agriculture by itself is not capabale in reponsding to household livelihood. That is, there exists a need for complementary source of income such as fuel wood production units. The major objective of this study is to investigate the process of forming these producton units and to investigate their existance in Seemacan Fars. The research method is based on analytical – descriptivemethod. This is followed by filling questionnaire by village councils pertaining to 40 villages as well as 249 rural households. This study suggests that emergence of this type of complementary economic unites dated back to 1370. It speeds up in 1380. The majority of these production unites are located in pole be payee and Koshksar, moheet Ab and Ab shoykh. Economically speaking the income of each rural household is 2.5 times of regular, non dependent householdes to this source. Furthermore, there exists a significant relationships between unemployment (r=0.274) and per-capita agriculture land (r=-0.224). It is further suggested that there is a significant correlation between household’s economic status and p revalenceof these production units. The packaging factory and corresponding Union and Insurance are highly recommended.