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The policy making in agriculture requires economic tools as well as real information about behavior of important economic variables in production
processes. Elasticitic:-- are economic tools which indicate behavior of economIc variahles. One of the most important elasticities that indicates the "lIhstitution
re1ations of different production J_1(;tors. is substitution elasticity. In order to estimates this elasticity, production functions such as CES production have often
been used. There are some limitations and problems in application of usual production function, such as procudtion function specification and constant elasticity
assumption. The CRESH production function which estimate this elasticity indirectly, is one of the few efficient functions in this respect. Assuming cost
minimizing behavior for wheat growers. the application of input demand functions
would enable us to get the price and substitution elasticities of inputs. In this article, price and substitution elasticities have been estimated using cross sectional data.
Results, show that machine price elasticity. 0.095, is the lowest and the same for seed is 0.237. The greatest. furthermore, substitution elasticities between seed and
labor, seed and machine, and machine and labor, are 0.55 I , 0.173, and 0.2007 ,
respectively.