Lack of an appropriate utilization regarding factor of production namely land and water resources is among the most important agricultural

challenges .It is argued that land fragmentation consider as a major obstacle in this regard . In fact, land consolidation is said to be a reasonable and applicable solution. The major objective of this paper is to investigate the impact of land consolidation upon the improvement of efficiency regarding the application of factor of production in Khararood, Khodabandeh. The research method is based on descriptive-analytical method as well as documentation and interview with both observation and questionnaires nature. As such, out of 50 plans conducted during past two decades by co operation of 285 agricultural utilizers, 104 were extracted. Data analysis is based on k square, Pearson correlation, non parametric Vilkakson’s statistics, Friedman test and analysis of variance. This study suggests that the number of the consolidated unites are being changed due to implementation of the plan comparing to the prior period .This in turn left drastic changes upon the improvement of efficiency associated with the application of factor of production. However, from the typical agricultural utilizers’ view points, variables, income and costs pertaining to agricultural activities ,with the value of 0.498 and 0.024 have the most and the least impacts upon efficiency respectively.