Studying the Effect of Guaranteed Price on Iran\'s Cereals Supply Response

  As the agriculture sector has key role in food security of a country, its protection is obscure for no one. Paying attention to this importance, in our country some policies have been carried out which their reviewing can contribute the policy makers in planning and operating. In this research, in order to studying the usefulness of performed protective policies, impact of guaranteed price as the most common protective instrument, have been studied on supply response of some important cereals using Auto-Regressive Distributed Lag (ARDL) approach during 1980-2006.   Results showed that, in long run, wheat, barley and corn guaranteed prices have no significant impact on their supply response. But wheat guaranteed price has significant impact on barley supply response. The results also showed that increscent in yield risk causes to reduction in wheat, barley and corn supply response. JEL Classification : C22, D4, Q18