Economic Analysis of Agricultural Sustainability in a Grape Production Farm

Abstract

This study is conducted for an existing grape production farm relies on traditional methods of production and irrigation, and a grape farm that relies on sustainable energy, and a drip irrigation system is proposed. Some economic analysis tools were used to determine the feasibility of adopting solar energy in a sustainable grape farm. The study aimed to compare the two farms through some economic indicators, by adopting the method of quantitative tabular analysis with some investment indicators in addition to descriptive analysis. The results of study are that the use of solar energy in grape production farms achieves economic revenue under normal production conditions and under risk conditions. It was found that adopting solar energy systems in sustainable grape production farms achieved estimated revenue of 7538.8 dollars/hectare, and under risk conditions it reached 5026.2 dollars/hectare, and the return on the invested dollar reached 2 dollars under efficiency conditions, and under risk conditions 1.3 dollars. While the estimated revenue of the studied grape farm in the current reality reached 6881 dollars/hectare, this is compared to the high costs of the sustainable grape farm due to the use of solar energy technologies. The study also concluded that the technical efficiency of the sustainable grape farm reached 83%, while the economic efficiency reached 84%. The study concludes the necessity of adopting sustainable energy in grape production farms because it reduces environmental pollution and the use of fossil fuels in irrigation operations, and the necessity of investing in grape farms because they are economically feasible.