An Economic Study to Measure the Impact of Agricultural Policies on Some Food Crops

Document Type : Original Article

Author

Agricultural Economics and Agri-business department, Faculty of Agriculture, Menoufia University, Menoufia, Egypt

Abstract

The research aims to measure the impact of agricultural policy on the costs and returns of agricultural production. and thus assess the effect on profitability and resource-use efficiency. This is done by measuring indicators related to protection coefficients and comparative advantage for wheat. local fava beans. lentils. sugar beet. onions. and garlic crops. The results show that. for the period (2017/2018–2021/2022). wheat farmers bear indirect taxes amounting to 4.95% of the value of their output and receive support of 2.04%. Local fava bean farmers bear 5.72% of taxes and receive 1.73% support. For lentils. farmers bear 5.98% in taxes and receive 2.11% support. Sugar beet farmers bear 5.79% in taxes and receive 2.18% support. while onion farmers bear 5.84% in taxes and receive 2.06% support. Finally. garlic farmers bear 6.11% in taxes and receive 1.98% support. In all cases. the crops showed a comparative advantage in production. The results also indicate that implicit subsidies have decreased in recent years. which aligns with agricultural policies aimed at reducing market distortions. Moreover. the comparison between the nominal protection coefficients for outputs and inputs showed a trend towards reduction. Furthermore. the value-added for food crops has increased. and the gap between local and global prices has narrowed. indicating a reduction in price distortions in the domestic market.

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