Determination of economic value and water productivity in major products of Iranshahr

The purpose of this study was to determine the economic and agricultural productivity of farmers using wheat and watermelon cultivation fields in Iranshahr area in the 2017-2018 crop year. To determine the economic value of water, flexible and inflexible functions used. After the calculated these functions, in order to select the best production function were used of classical assumptions and econometric tests.Based on the results, Cobb-Douglas function was selected as a higher function of demand. Based on agricultural productivity utilization indices , the productivity of these two products was calculated. The absolute magnitude of the self-priced stretch of water demand for wheat and watermelon was 1.13 and 1.27, which was larger than the other. This greatly reduces the magnitude of costs, low cost policies can be valuable for controlling non-existing costs. The final production yields for wheat and watermelon were calculated to be 0.87 and 2 respectively. The economic value of water for wheat was 12441 and 14,000 rials per cubic meter. Results of productivity indices showed that watermelon had higher productivity index than wheat.