Economic and Environmental Impacts of Government Support Policies in Ramjerd Plain, Fars Province

Subject Areas : Agricultural Economics Research

Samane Rahmani ¹ , Fatemeh Fathi ^{2 *} , Zahra Koohi Kradeh ³ , Zahra Moradnezhad ⁴

1 - 1. Ph.D. Student, Agricultural Economics, Shiraz University, Shiraz, Iran
2 - 2. Associate Professor of Agricultural Economics, Shiraz University, Shiraz, Iran
3 - 1. Student, Agricultural Economics, Shiraz University, Shiraz, Iran
4 - 1. Student, Agricultural Economics, Shiraz University, Shiraz, Iran

Received: 2024-11-10 Accepted : 2025-07-25 Published : 2025-07-25

Keywords: Government support policy, exchange rate, optimal cropping pattern, PMP, water consumption,

Abstract :

 

Governments often implement policies to support agricultural production, primarily to ensure food security and strengthen farmers' livelihoods. This study analyzes the effects of aligning guaranteed crop purchase prices with global levels under two scenarios: free market and preferential exchange rates. It also evaluates the impact of removing chemical fertilizer subsidies on crop patterns, farmers' income, and input use in the Ramjerd plain of Fars province. Materials and Methods: In this study, a Positive Mathematical Programming (PMP) model was used to analyze three scenarios. Data were collected through questionnaires and statistical reports from the Agricultural Jihad Organization of Fars Province for the agricultural year 1400-1401. Findings: The results indicated that in the first scenario, the area under cultivation for water-saving crops, particularly wheat, increased, while the area for water-intensive crops like rice and tomatoes decreased. In the second scenario, the area for water-saving crops like rapeseed and barley declined. The third scenario saw a reduction in wheat cultivation with the highest water consumption reduction of 1.2%. Farmers' income increased in the first two scenarios but dropped significantly in the third. Chemical fertilizer use rose in the first two scenarios, with no decrease in nitrate fertilizer use in the third. Conclusion: Raising crop prices can alter cropping patterns, impacting water use and farmers' income. Removing chemical fertilizer subsidies may reduce water use but negatively affect farmers' income. This study helps policymakers understand the economic and environmental impacts of agricultural policies.

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