DMUs encounter significant variances in their production capabilities as well as the features of the manufacturing environments in which they operate. As a result, DMUs are likely to see significant disparities in production and efficiency (Kamilaris Aet al., 2018). The conventional literature, on the other hand, suggests that DMUs have identical technological capabilities and only differ in terms of inefficiency. This paper creates an analytical framework with random factors to account for variation in production possibilities and production environment characteristics. We use this framework to investigate differences in irrigation output elasticity across DMUs and how these differences influence: irrigation water use efficiency (IWUE), a non-radial input-oriented approach that isolates and measures the efficient use of the irrigation input; technical efficiency, which radially measures the efficient utilisation of all inputs; and irrigation withdrawal shadow prices. We discovered that IWUE and technical efficiency averaged 72.6% and 83.6%, respectively, and shadow costs averaged $77.5 per million gallons of irrigation water, with considerable regional differences (Mamdouh N et al., 2021).