Evaluating Agricultural Price Policy through Positive Information in Iran

Supplying food to a growing population has always been a concern for authorities in Iran. In this regard, agricultural sector plays an important role in food supply and food’s security by increasing agricultural production. But the most important concern in Iranian agricultural sector are the scarcity and resource constraints. Therefore, it seems that only way to increase food supply along with food security purpose is to increase productivity. One of the policy used to increase productivity is the output price policy, in particular for those strategic products that provided Iran's political security. The aim of this paper is to assess the effect of output price policy for Iranian agriculture. This latter is represented by a regional agricultural model, based on PMP, that groups the agriculture supply of 30 Iranian regions. The assessment of IAP presented in this paper confirms the biggest effects regions. It means that the effect of new IAP scenario is different in each region and each region has special cropping pattern. In this regard, policy makers should implement different sustaining policies at regional level. Also, if Iran wants to join WTO, it should be reduced or removed the amount of payments for inefficient crops.