-

The importance of risk in efficiency analysis is acknowledged. Then ,considering the risky nature of agiculture, a procedure to determine the levels, of economic efficiency and its allocative and technical components, in the mathematical risk programming framework, is presented. Various type of risk programming methods were. evaluated . Direct expected mathematical model was then adopted for the current study. The programming models were then solved by using the General Algebraic Modeling System (GAMS/MINOS) non-linear maximization option. The results indicated that it would be feasible tosubstantially increase farm product and farmer’s total net revenue by increasing their economic efficiency.,
The ELCE interview technique with imaginaty payoffs and the triangular distribution method were used to elicit the utility functions and subjective probability distribution of crop yields and of prices from sample farmers, respectively.. The analysis of the results classifiled all the sample farmers as risk averse. Thus understanding of this aversion is an important factor in proposing policies by the planning agencies.