E ECONOMIC ANALYSIS OF PRODUCTION AND COST FUNCTIONS OF OLIVE CROP AT MATROUH GOVERNORATE
                                                                            

 
The problem of research was the limitations of water resources with the growing water needs in agriculture. The research aimed at studying the estimation of the production and costs functions of the olive crop.Production functions show the extent to which agricultural production units achieve economic efficiency in their use of production resources involved in the production process and the extent to which these units maximize the profits of the agricultural product. The important indicators both at the level of the production unit and at the national level the relationship between costs and production, which can be used in the formulation and analysis of price policies and help agricultural producers in making their own productive decisions, which would encourage producers to continue or to expand the production process or stop production, as well as to determine the volume of production that maximizes profits and thus achieve economic efficiency of the use of productive elements.
The Results showed that to determine the parameters of the yield function of the olive yield from the data of the research sample according to the estimated model in the form of cup-Douglas, by introducing all the productive elements affecting the total output of the olive yield, (EP) for the function by about 0.51 for the total sample and 0.99, 1.06 and 1.02 for the three categories respectively. This shows that the production is in the first stage and the optimum production volume which reduces the costs of olive production in the total sample of the study was about 4.3 tons and the other three categories Reached 1.98 tons, 2.3 tons, 3.4 tons, respectively , And that the total actual farm size of the total sample was about 2.5 tons, which is less than the optimal production volume and 2.2 tons, 2.3 tons, 3 tons, which is greater than the optimal production volume in the third category. As for the size of economic production, which maximizes profit, 4.9 tons in the total sample and in the other three categories reached 2 tons, 2.38 tons, 4.9 tons, respectively.
The research recommends to develop rain harvesting methods, introduction of modern supplementary irrigation techniques to increase the increase production and the level of economic efficiency of olives on farms.efficiency of supplementary irrigation, awareness of the importance of tillage operations to increase soil permeability so that it can absorb the largest amount of rainwater and store it in layers under the surface of the soil to benefit trees during the growing season, and caring for the human element to