Policy Alternatives in Crop Production Considering the Effects of the Agricultural Support Policies

Abstract

Considering the objectives of agricultural support policies, it is important evaluating the policy results and measuring the effectiveness of the supports in order to review, redirect and change the policies under implementation when necessary. The purpose of this study is to have a trial on this evaluation and measuring the effectiveness of supports. In the study, by estimating the costs of the six basic products, the relationships between the change in annual producer income, domestic and world prices of the products, unit support and production level are examined at a glance. Some of the important findings are: The effects of agricultural support on production may be limited, cotton may be more responsive to the provided support, but the effects of increases in producer income due to the interaction of domestic and international prices and the increases in these prices have higher impacts on production; accordingly, there is a need for a dynamic system based on income in supporting agricultural production, and the support amount can be increased or decreased by taking into account the multi-year income obtained in production on a basin based approach considering crop rotation; a new incentive and land use system cooperating with the private sector can be used to bring idle agricultural lands into production; income insurance is another alternative policy tool in agriculture; in addition, suggestions are also offered to examine solutions to ensure that the poorest segment of agricultural producers and young people who make or will make agricultural production may benefit more from the social security system.