Rising agricultural wages lead to increased production costs and lower profits.
The study looked at how higher wages and input costs affect the production of important crops in Sharkia Governorate. They found that agricultural labor and inputs make up a big part of crop production costs. Rising wages and input costs have a significant impact on wheat and sugar beet production, but not on rice and corn. The cost of living increase has led to higher wages for farmers, but not necessarily higher productivity. Lack of healthcare and insurance for farmers, along with low skills in using modern technology, are major challenges. Overall, agricultural wages now make up about 48% of total costs, and production requirements contribute around 34.1% to overall costs.