Agricultural Economics and Development

Agricultural Economics and Development

Study the Impact of Guaranteed Price and Guaranteed Purchase policies on Cultivation Area and Production of Wheat

Document Type : Original Article

Authors
Baharak Roustaei 1
mahdi kazemnejad 2
Mina Rabiei 3
S.Z. Hosseini 4
1 MSc Student in Agricultural Economics, Payame Noor University, Karaj, Iran
2 Assistant Professor of Agricultural Economics and Faculty Member of Agricultural Planning, Economics and Rural Development Research Institute (APERDRI), Tehran, Iran
3 Associate Professor of Natural Resources Engineering, Payame Noor University, Karaj, Iran
4 Assistant Professor of Natural Resources Engineering, Payame Noor University, Karaj, Iran
10.30490/aead.2020.338263.1179
Abstract
Agriculture is one of the economic sectors and plays an important role in ensuring food security, economic growth, employment and, eventually, GDP. Increasing production of major crops like wheat may lead to improve food security. In this study, we investigated the impacts of purchase support policies and guaranteed prices on the cultivation area and production of Wheat during 1369-96. In order to modeling the relationships between variables, The Nerlove partial adjustment model was used and for clearing the relationships between variables and test the hypotheses,the ARDL model was used. The results indicated that the guaranteed purchase and the guaranteed price had a positive and significant impact on the wheat cultivation area and production. This Study indicated that increase in guaranteed price for wheat was less than the inflation rate in same years. Therefore, it is suggested that inflation ratemust be considered in determining a guaranteed price, as mentioned in the law.
Keywords
Agriculture
Support Policies
Cultivation Area
Production
Nerlove Model
Auto Regressive Distributed Lags (ARDL)
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