The effects of having agricultural machinery in the agricultural farms of erzurum city on the farm income and product cost

This research was conducted upon determine profitability rate of having or renting agricultural machinery equipments by calculating production costs in farms of Erzurum in 2006. A total of 200 survey data determined from the farmers of 30 scattered villages of Erzurum city, central province, Ilıca, Aşkale, Pasinler, Köprüköy and Horasan provinces was used as study material. Literatures related to topic, information from web pages and public organizations was also used as study data. Collected data were divided into two groups as machinery owner and not machinery owner then analyzed accordingly. According to the results of analysis, it was determined that having machinery was more advantageous than not having machinery. Cost calculations were made from ten products, it was determined that the farms with their own equipments have met all of the product costs and gained profits. It was determined that variable costs were met from the farms which had no equipments, but not in the production of barley, rye and common vetch. Share equtions were determined in both groups by using translog cost functions, Price, diagonal and Morishima elasticitiy of substitution curves were determined for the labor, land, fertilizer and fuel in the first group, and labor, land, fertilizer and machinery rent in the second group. Model solving was realized by using seemingly unrelated regression method (SUR). Consequently, it was determined that having machinery was profitable and income value was higher after having governmental support. It was suggested that farmers should be convinced to have their own machinery equipments and they also should be enlightened about the machinery buying supports of government.