Survey the Relative Advantages and Economic Evaluation of Pure and Mixed Cultivation of Legume and Grains (Case Study: Shirvan County)

In this study, economic evaluation and relative advantage of pure and mixed cultivation of millet and bean in Shirvan were surveyed. For this purpose benefit to cost, internal rate of return, net present value and policy analysis matrix indexes were calculated. The results show that mixed cultivation is better than sole cultivation economically. Also, Sole cultivation of these crops haven't relative advantage, while mixed cultivation has relative advantage. Nominal protection coefficient index of sole cultivation of bean and mixed cultivation showed that indirect tax has been imposed on producers. The nominal protection coefficient of the input in all types of cultivation revealed that there is an indirect subsidy for tradable inputs. Effective protect coefficient index of sole cultivation of bean and mixed cultivation was less than the unit, therefore it isn't supported the input and product markets in these cultivations. Finally, the social net profit index of bean and millet sole cultivation was negative; but it was positive for mixed cultivation of them indicating that mixed cultivation has a social net profitability. Overall results show that sole cultivation of millet and bean hasn't relative advantage in current situation of Shirvan, but mixed cultivation can increase the economic benefits and relative advantage.

JEL Classification: F1

Keywords:
Policy Analysis Matrix(PAM), Support Policy, Mixed cultivation, Shirvan