Climate Impact on Egyptian Agriculture: An Efficiency …
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increasing rate return to scale meaning that maize and rice producers could become
more profitable with larger operations. The empirical findings in the inefficiency
equation indicate that average maximum temperature and humidity have a significant positive effect on technical inefficiency. Results of the efficiency scores show,
on average, that Behera, Gharbia, Kafr El-Shiek and Sharkia are more efficient in
producing wheat and maize compared to rice, while Dakahlia is more technically
efficient in Maize compared with rice and wheat.
8 Recommendations
Based on the results, this information could help policymakers understand how to
apply any new policies. For example, making new investment plans for introducing
climate-smart technologies and adopting new production practices that may help
increase farms’ technical efficiencies that in turn will help increasing agricultural
output and reduce the variability of yields. Additionally, improving local markets
infrastructure and logistics, which will help to smooth the supply of food and facing
international markets volatilities. Considering that family farming which represents
the majority of all farms in Egypt, improving their technical efficiency allows reducing production costs and improving competitiveness that can help them face fluctuating market conditions and economic hardships. As climate impact on agriculture
is intensifying, Egyptian agricultural policies needs to be developed that technically
support farmers through training to improve their skills to face these effects, minimizing carbon emission from agriculture the recycling of agricultural waste instead of
burning it. Use new varieties of cereal crops that are more resistant to climate impact.
Develop markets for carbon credits to regulate the right to pollute. Promote sustainable use of natural resources like the current government initiatives of reducing rice
and sugar cane crops cultivated areas to reduce water consumption and adoption of
advanced irrigation systems that efficiently use water.
Introducing significant changes in current Egyptian agricultural policies focused
through giving main attention to achieving the higher growth rates in agricultural
production. The current growth rate does not exceed 3% annually for the past decade;
this rate should be doubled to at least 5% through increasing agricultural investments
from 8 billion Egyptian pounds at the present time to 16 billion annually at constant
prices over the next decade. Increase agricultural research budget, especially research
related to the production and development of adaptable varieties to climate change,
like salt-resistant varieties, heat-resistant varieties, short-lived varieties, and watersaving varieties and spending on improving animal breeds. It should be noted that
the current share of agricultural research does not exceed 25 million pounds per
year. This is incompatible with the challenges facing Egypt related to food security.
In the future, this budget needs to increase to at least 500 million pounds annually,
which does not exceed 0.5% of the total agricultural output. Follow appropriate
strategies to resist rising sea levels to prevent erosion of the northern shores of the
Delta. Future research will not only focus technical efficiency, which is the first
621
increasing rate return to scale meaning that maize and rice producers could become
more profitable with larger operations. The empirical findings in the inefficiency
equation indicate that average maximum temperature and humidity have a significant positive effect on technical inefficiency. Results of the efficiency scores show,
on average, that Behera, Gharbia, Kafr El-Shiek and Sharkia are more efficient in
producing wheat and maize compared to rice, while Dakahlia is more technically
efficient in Maize compared with rice and wheat.
8 Recommendations
Based on the results, this information could help policymakers understand how to
apply any new policies. For example, making new investment plans for introducing
climate-smart technologies and adopting new production practices that may help
increase farms’ technical efficiencies that in turn will help increasing agricultural
output and reduce the variability of yields. Additionally, improving local markets
infrastructure and logistics, which will help to smooth the supply of food and facing
international markets volatilities. Considering that family farming which represents
the majority of all farms in Egypt, improving their technical efficiency allows reducing production costs and improving competitiveness that can help them face fluctuating market conditions and economic hardships. As climate impact on agriculture
is intensifying, Egyptian agricultural policies needs to be developed that technically
support farmers through training to improve their skills to face these effects, minimizing carbon emission from agriculture the recycling of agricultural waste instead of
burning it. Use new varieties of cereal crops that are more resistant to climate impact.
Develop markets for carbon credits to regulate the right to pollute. Promote sustainable use of natural resources like the current government initiatives of reducing rice
and sugar cane crops cultivated areas to reduce water consumption and adoption of
advanced irrigation systems that efficiently use water.
Introducing significant changes in current Egyptian agricultural policies focused
through giving main attention to achieving the higher growth rates in agricultural
production. The current growth rate does not exceed 3% annually for the past decade;
this rate should be doubled to at least 5% through increasing agricultural investments
from 8 billion Egyptian pounds at the present time to 16 billion annually at constant
prices over the next decade. Increase agricultural research budget, especially research
related to the production and development of adaptable varieties to climate change,
like salt-resistant varieties, heat-resistant varieties, short-lived varieties, and watersaving varieties and spending on improving animal breeds. It should be noted that
the current share of agricultural research does not exceed 25 million pounds per
year. This is incompatible with the challenges facing Egypt related to food security.
In the future, this budget needs to increase to at least 500 million pounds annually,
which does not exceed 0.5% of the total agricultural output. Follow appropriate
strategies to resist rising sea levels to prevent erosion of the northern shores of the
Delta. Future research will not only focus technical efficiency, which is the first