Journal of Agricultural Economics and Development
Year:2005 | Volume:13 | Issue:2 (50)|Papers Count:12

Are the agricultural policy reforms embodied in the Uruguay Round consistent with meeting domestic policy objectives such as providing adequate food security, environmental protection and viability of rural areas? This article examines the claim that agriculture deserves more price support and import protection than other sectors because of the non-marketed externalities and public goods it produces jointly with marketable food and fib er (agriculture's so-called "multi-functionality". Do these unrewarded positive externalities exceed the negative externalities from farming by more than the net positive externalities produced by other sectors? To what extent are those farmer-produced spillovers under-supplied, and what are the most efficient ways to boost their production to the socially optimal levels? The article concludes that there is little trade-off required to meet domestic policy objectives on the one hand and agricultural protection reform objectives as embodied in WTO rules on the other.

Golestan province is one of the main cotton production regions in Iran. The cotton yield in this province is higher than the world's mean yielding. Considering that cotton production and cultivation area have been affected by trading and pricing policies in compare with other products by design makers in this area during "- the recent decades and also because of climate stability of this state on the production of main agricultural products, allocating resource to various crops is very important. Therefore surveying comparative advantage in cotton product has been specified in this area. Therefore, in this study comparative advantage of this product is calculated, by the use of cross section data (2001-2002) and domestic resource cost indicator. The results show that cotton has a high comparative advantage in this area and finally based on these results, some suggestion are recommended.

The main purpose of this study is to explore the merits and comparative advantages of production and export of garden and farming crops of Qazvin province for appropriate planning of that state based upon its resources and potentialities, in order to enable it to expand its share in national division of labor and perpetuate its proper stand in non oil exports. Accordingly, in this study, the methodology or assessment of comparative advantages is based upon comparability of production cost and analysis of government protection impact in which we applied policy analysis matrix as a technique. The estimated DRC and NSP criteria by fitting 2000-2001 data indicate that plenty of crops are bearing the comparative advantages which show the high potentiality of the province in cultivation and gardening. Among the crops under survey, melon has the first priority and the best index, after that sugar beet, cucumber, watermelon, irrigated corn, nce, tomato, potato, sunflower, onion, bean and castor are in the next orders respectively. In garden sector, comparative advantage indices show that crops such as nectarine, peach, olive, pear, cherry, pistachio and grape, with a DRC less than one, have the best comparative advantage indices, respectively.Concerning the achievements of the study, NPIC index for all the farming crops reviewed in the study (totally, 18 farming products) was less than unity and indicates effectiveness of the government protection policies regarding the farming input market. The farmers, in contrast, in garden sector benefited the protection policies only for grape, olive, pomegranate and black cherry. In this respect, the government does not have any protection and non-protection policy regarding tradable inputs of the garden sector. Average protection criterion (NPC) for all of the farming and garden crops is bigger than one, which means that sales market for all the crops is under protection of the state. Based on the calculation, the average protection in input and output market (EPC) for the all of farming crops is bigger than one, but for garden products this coefficient (EPC) is merely bigger than one for crops such as cherry, apple and walnut. In other part of the study, the sensivity analysis of comparative advantage indices indicated that among all factors, they are more sensitive to cost of production. Therefore reduction of production ccst and increase in factor productivity are more effective in improvement of DRC.

One of the achievements of Iran’s agricultural sector in recent years has been self–sufficiency in wheat production–an strategic product which has long been on Iran’s importing list. We begin with the question of whether the price has had a more important role here or adequate rainfall, as price policies making has been a major focus lately.This study probes into the interplay of the factors operating on wheat yield function by taking into consideration the wheat production of the 28 provinces in Iran during 1998-2002. A  panel data approach was adopted in an attempt not to overlook province heterogeneities that have been caused by diverse rainfall, land quality, etc.The results show that the area under cultivation of wheat is the most important factor to enhance the wheat production of the country. Price and rainfall come next, respectively. This accords very well with those who believe in policy making through prices. The results also indicate that “distributed fertilizers” have a significant and negative effect on wheat production in the years of study. This is suggestive of this fact that way we use fertilizers is not based on scientific findings and methods. The conclusion implies that previous policies in this case ought to be changed.

Production of rice accounts for the pivot of agricultural economy in Gilan Province, and any fluctuation in its yield would accordingly affect the farmers’ livelihood. Chemical fertilizers and pesticides have an effective contribution in rice production and they receive indirect subsidies, among the existing supports in framing  operations. In past years, and upon the World Bank’s recommendations to under-developed and developing countries, the government adopted certain policies on liberalization of input price and reduction of production subsidies to enhance agricultural productivity rate and to decrease environmental pollutions. This survey is to assess the impacts of lower application of the foregoing inputs on quality and quantity of rice yield and its production cost in Gilan Province. Moreover, this effort goes on estimating certain production functions followed by adoption of their best and computation of its potentials for input production. Besides, estimation of translog cost function was also made through ISUR method followed by calculation of self- pricing and transversal potentials, Alen Transversal potentials, demand functions for inputs, and analysis of the impacts of liberalization policies.In view of 1200 questionnaires filled through fully-random dual sampling, the collected figures were also analyzed and processed via researching method. The results approved that the production potential calculated for chemical fertilizers stresses their application in the second production area with higher economic performance. And in viewing its potentiality of demand function, there would be an increase of its price and decrease of its application if the price is practically liberalized. Therefore, upon comparison of direct and indirect losses and profits, it is concluded that liberalization policy for chemical fertilizer’s price which would affect the rice production in Gilan province as the total losses, will overflow the total profits. Regarding the applied pesticides, it was identified that they can be utilized in the third production area based on calculated production potentiality. In addition, pesticide demand potentiality is highly intensive and hence its price increase would force its application in the second area i.e. economic area. However, the direct profits of liberalization policy on pesticide price is slightly higher than its direct losses, and the policy –makers may come to this conclusion that the above-mentioned scenario would impose a negative impact on rice production trend in Gilan province.

Increasing population and deficit of production resources, draw attentions to increase productivity and optimal use of resources.Therefore, due to its specific impact, agricultural research will be important. Then, evaluating of optimal agricultural research investment is necessary. In this study, tornqvist-teil productivity index was calculated. Then, the impact of agricultural research and extension was considered on productivity by polynomial degree lag model and in next step the marginal internal rate of return calculated for agricultural research. The results showed that the productivity have had a climbing trend in agricultural sector during 1978-2002. Also, agricultural research investment affects productivity after 5 years and this effect will be left for 3 years. Long-term coefficiency of agricultural research is 0.28 and marginal internal rate of return was calculated up to 33.52 % in productivity model.

The goal of the present study is to estimate the optimum size of the Iranian kiwi fruit orchards and to examine the optimum number of trees per unit of production.The information and the data needed for the research are derived from questionnaires completed from the kiwi farms in 2001- 2002.Econometric methods are used to study the cross section estimates of the total productivity function. The findings indicate that the land used for kiwi fruit cultivation is underutilized for all the orchards.The estimated optimum size of a kiwi fruit producing orchard is approximately 11.2 ha. This indicates that most of the kiwi fruit orchards are smaller than the optimum size.According to the findings of this study, the frequency of kiwi trees per hectare is approximately 402, which is much more than the optimum number.Therefore, it is suggested that the agricultural development officers should advise the kiwi farmers to try to establish orchards using the optimum size (between 10-12 ha.),and reduce the number of trees per hectare, in order to reach this size.

For the last decades, Iran has been among the honey exporters though it has never been able to achieve a special and proper position. An analysis on the figures for the recent years indicates the significant fluctuations in Iran’s honey export and its share in the world market.This study aims to analyze the comparative advantages of Iran and other countries in honey trade to determine if Iran should stay in the market or should leave it. As the second goal, it intends to help the Iranian honey exporters achieve a more proper position in the world markets through providing them with a list of potential target markets. The results show that a number of countries such as Brazil, Peru, Pakistan, Nepal and Portugal enjoyed the comparative advantage in 2003. Also their RCA index trends were upward and saw the most changes in 1984-2003. Iran was among the countries which lacked the comparative advantage in honey export in 2003 though its RCA index trend saw the most positive change during the years 1984-2003.The main importers of Iran’s honey during 1997-2003 were Turkey, UAE, Azerbaijan, Kuwait, Saudi Arabia and Qatar, respectively. However, its potential target markets include Germany, Saudi Arabia, USA, Japan and Liberia.

During recent two decades, establishment of rural credit funds have been into consideration as a way to provide credit for rural producers and farmers by most of the governments of the countries, and especially by third world countries. In order to establish and develop these credit banks in every society it is necessary to know the social, economic and cultural contexts and in addition to villagers, interests. For this reason, the goal of this research is a survey on establishment of rural credit funds to facilitate the process of giving credit services to rural producers. Research population includes all villagers of eastern part of Tehran province. 125 villagers of countries including Firoozkooh, Damavand, Ray, Pakdasht and Eslamshahr were selected by using randomized sampling, according to Morgan’s table for determination of sample size, and data were collected through interview and questionnaire instruments.Findings indicate that, mean of staying distance of respondent to the nearest city is 19km. And respondent’s average of age was 40 years and most of them were involved in husbandry and farming activities. Monthly average income of respondents was about 177000 tomans. and yearly average income of them was about 2388000 T. According to the results, the most of the respondents, income was not  satisfying. It was claimed that they are not even able to save some money monthly, and when inneed, they turn to banks, charity funds, relatives and accountancies to get money.Accordingly, almost all of the farmers don’t have any saving in the month and in the year, but the farmers that have a saving, use it in agriculture and productivity activities and also for everyday expenses.Results also revealed that, respondents were well satisfied with the amount of the membership fee, the amount of loans, the system of loaning, the number of loans for members, and the way of monitoring and managing credit and financial institutes.Respondent told that these funds should be able to give 500000 T. loans, and interest rate of loans should not exceed 16 present. They also wanted membership fee, to be to that extent which they could afford it. Government’s grants, efficient management and members, confidence in funds officials, were factors suggested by respondents to establish successful funds.