Evaluation of the Economic Effectiveness of the Timely Management Plan for Pistachio Orchards

Introduction
In many parts of the world, agricultural extension services traditionally provide general recommendations to farmers across large geographical areas such as regions or provinces. Such approaches often overlook the heterogeneous biophysical and socioeconomic conditions that characterize smallholder farming systems. In contrast, site‑specific extension provides recommendations tailored to individual farms or local conditions and can therefore improve productivity more effectively than conventional extension methods. Given the increasing complexity of agricultural challenges, stronger interaction among researchers, extension agents, and farmers—along with active farmer participation in decision‑making—has become essential for achieving farmer‑centered extension and empowerment. In response to the need for both site‑specific extension and participatory approaches, comprehensive production–extension model sites have been established in Iran as an important mechanism for disseminating research findings and promoting the adoption of new agricultural technologies. These model sites are implemented in selected farming, horticultural, livestock, and natural resource units where the Ministry of Agricultural Jihad evaluates, demonstrates, and disseminates technical recommendations and research outputs. Previous evaluations of these sites have largely relied on Kirkpatrick’s four‑level evaluation framework—reaction, learning, behavior, and results. However, most studies have focused primarily on the first three levels, while the final level, particularly economic outcomes, has received comparatively little attention. Nevertheless, the ultimate success of extension programs depends largely on their performance outcomes. From an economic perspective, such initiatives are justifiable only if they lead to improved farm profitability. Therefore, this study evaluates the economic effectiveness of pistachio production–extension model sites by comparing member and non‑member farmers in terms of orchard performance and gross profit.
 

Methodology

Data were collected from all farmers participating in the main production–extension model sites; therefore, a census approach was initially intended. However, only 21 main‑site members agreed to participate in the survey. Additionally, two farmers were randomly selected from the functional sites associated with each main site, resulting in 41 respondents. To balance the number of participants in the main sites, 19 non‑member farmers were also randomly selected. In total, the sample consisted of 81 pistachio farmers. Data for the economic analysis were gathered using a researcher‑designed questionnaire. To ensure content validity, a preliminary version of the questionnaire was reviewed by several faculty members from the Agricultural Research, Education and Extension Organization, and subsequently revised based on their feedback. Reliability and internal consistency were assessed through a pilot test using Cronbach’s alpha, which yielded a coefficient of 0.75, indicating acceptable reliability. First, gross profit per hectare from pistachio production was compared among three groups—main‑site members, functional‑site members, and non‑members—using analysis of variance (ANOVA). Next, the effect of site membership on gross profit was estimated using a production function model. Finally, the partial budgeting method was applied to assess the economic impacts of the comprehensive production–extension model sites in improving the timely management of pistachio orchards. All statistical analyses were conducted using SPSS version 26.
 

Findings

The results indicate that farmers affiliated with the main model sites achieved higher yields per hectare compared with the other groups. This occurred despite the fact that production costs were relatively similar across the three groups, with no statistically significant differences observed. In other words, while farmers incur comparable production costs, those participating in the model sites demonstrate better overall production performance. The findings further reveal that pistachios produced by farmers in the main model sites are generally of higher quality and can therefore be sold at higher market prices. Significant differences were also observed among the three groups regarding annual gross profit per hectare. Farmers in the main model sites recorded the highest gross profit per hectare. In contrast, farmers in the functional sites exhibited the lowest gross profit per hectare, while non‑member farmers ranked between the two groups. Although profitability declined in functional‑site orchards, membership in the main model sites significantly increased profitability. This result suggests that the relatively lower profitability observed in functional pistachio orchards warrants further investigation, whereas properly implemented production–extension model sites have the potential to substantially improve farm profitability. In addition, the results of the partial budgeting analysis indicate that these model sites generate positive economic returns and provide net social benefits.
 

Discussion and Conclusion

This study employed multivariate regression analysis to control for heterogeneity among farmers and to compare pistachio production profitability across three groups: members of main model sites, functional‑site members, and non‑members. The results demonstrate that production–extension model sites can enhance economic profitability and are therefore economically justifiable. Further analysis shows that farmers participating in the main model sites earn higher profits per hectare than non‑members, whereas farmers in functional sites exhibit lower profitability than non‑members. Two main explanations may account for this outcome. First, structural and contextual differences among farmers can reduce the effectiveness of generalized extension recommendations. The regression results highlight substantial heterogeneity among pistachio farmers in three key areas: the use of traditional inputs (such as animal manure and labor), exposure to climate‑related conditions (including geographic location and the quantity and quality of irrigation water), and differences in pistachio varieties. Ignoring these variations may limit the effectiveness of extension programs. Farmers in functional sites may face structural constraints—such as water scarcity and salinity—that must be addressed before implementing recommendations developed for the relatively problem‑free conditions of the main sites. Second, farm profitability depends on the extent and consistency with which farmers adopt extension recommendations. The findings suggest that modern agricultural practices must be implemented comprehensively in order to improve economic performance. Semi‑traditional and semi‑modern farming systems may reduce production efficiency and profitability. In other words, farmers either need to continue using traditional methods or fully adopt modern practices correctly, since partial adoption may lead to suboptimal outcomes and reduced profitability.