Iran’s agricultural sector comparing with the other economic sector suffers from subsistence method. Small farm size, scatter distribution of holdings, lack of an appropriate irrigation and drainage systems, and non-existence of roads between farms have led to increase in production costs and reluctance regarding agriculture activities and relevant investment. This in turn demands the implementation of equipped – renovated rice paddies plan. The study area is Soome-e Sara. Research method is based on analytical – descriptive method. This is followed by application of field work via observation, interview and filling the questionnaire in order to determine the economic impacts as well as the mechanization and its subsequent labor forces release as a result of implementation of the mentioned plan in the study area. Based on Morgan’s table, 376 questionnaires were distributed among the rural settler’s. This is followed by coding and SPSS analysis. This study suggests that the implementation of the mentioned plan has led to reduction in rice production costs, increase in efficiency and peasant incomes. It is further argued that needed labor force in new rice field is lower than the non-applied plan fields. Moreover, peasants possess job variation in new rice paddies as opposed to non-applied plan paddies. Furthermore, number of peasants deal with second round crop in new farms is more than the traditional one. However, the area under cultivation for second round crop in these villages which adopt the plan is more than the traditional one.
