Agricultural Economics
H. Naruei; M. Ahmadpour Borazjani; M. Salarpour; A. Keikha; R. Esfanjari Kenari
Abstract
The negative and destructive impact of climate change on the efficiency and productivity of agricultural inputs has been demonstrated in many regions of the world, particularly in arid and semi-arid areas. In this context, the adoption of innovative strategies to increase farmers' flexibility and adaptability ...
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The negative and destructive impact of climate change on the efficiency and productivity of agricultural inputs has been demonstrated in many regions of the world, particularly in arid and semi-arid areas. In this context, the adoption of innovative strategies to increase farmers' flexibility and adaptability to climate change has increased. Hence, understanding the impact of climate adaptation strategies on agricultural efficiency and yields is crucial. This study examined the effects of climate change adaptation strategies, input utilization, and external factors beyond farmers' control on technical efficiency using the Endogenous Modified Stochastic Frontier (EMSF) model. Data were collected from 265 questionnaires distributed among wheat farmers during the 2022-2023 cultivation period, using a stratified random sampling approach. The climate adaptation strategy index was formulated using the Principal Component Analysis (PCA) technique. The PCA revealed that changes in farm size (0.812), adaptation of conservation tillage (0.797), and adjustments in planting dates (0.619) were the most influential factors. Conversely, rainwater harvesting (0.219) and biofertilizer application (0.327) emerged as the adaptation strategies with the lowest factor loadings among farmers. In this study, the average technical efficiency of wheat farmers was calculated to be 82%. The model estimation results showed that labor input, chemical pesticides, chemical fertilizers, water, and machinery significantly and positively contribute to wheat production efficiency. Additionally, the implementation of climate adaptation strategies by farmers reduces technical inefficiency. Variables such as education level, farming experience, access to climate information, and access to credit also effectively reduce technical inefficiency.
M. Shabanzadeh-Khoshrody; A. Mahmoodi; R. Esfanjari Kenari
Abstract
Introduction: Agriculture as one of old sectors of economy has been important role in the supply food for peoples and raw materials. Globalization causes rapid growth of world trade and reduces information and communications costs. Globalization and rapid growth of trade increases the potential benefits ...
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Introduction: Agriculture as one of old sectors of economy has been important role in the supply food for peoples and raw materials. Globalization causes rapid growth of world trade and reduces information and communications costs. Globalization and rapid growth of trade increases the potential benefits of trade for agriculture from various aspects. The potential benefits of trade for agriculture increases from three aspects. Direct increase in the domain of agricultural sector activities for competition in the global market results in the benefits of access to global markets. This is especially true in cases where there is comparative advantage and the indirect effects of increased global trade on non-agricultural sectors that cause the domestic demand for food change from qualitative and quantitative aspects, are the benefits of this event. However, during the process of globalization, how to influence prices in different markets, including the impact of world prices on domestic prices is an important issue in trade policy analysis. During this process domestic prices are directly related to world prices. With this approach, the main objective of this study is to examine the effect of world price transfers to domestic markets for sensitive and certain agricultural products in Iran during 1360-91.
Materials and Methods: To achieve this goal in this study, the Armington and the foreign currency elasticity of ten selected agricultural products in Iran including wheat, barley, rice, corn, soybean meal, vegetable oil (soybean and sunflower), sugar, eggs, poultry and beef, have been estimated and examined using Autoregressive Distribution lag Model (ARDL). In order to investigate speed of adjustment or in other words the speed of movement towards equilibrium, typically the error correction model (ECM) is used. Existence of cointegration or in other words, long term relationship between a set of economic variables provide the basis for the use of error correction model. In fact, error correction model links the short term fluctuations of the variables to their long term equilibrium values and shows adjustment speed and long term movement towards equilibrium.
Results and Discussion: The results of the present study show transfer of the world price fluctuations to the domestic market in the long run is more than in the short run. Moreover, if the products face a gap in domestic demand, and the local production is so limited that it cannot limit the import of that product, the products would be more affected by fluctuations in world prices. The results of ECM model reveal that the speed of adjustment towards long run equilibrium for most products is low such that if the shock enters the market of each product a long time is required for correcting the short-run and long-run imbalance equilibrium and bring it back to the first equilibrium.
Conclusion: The results showed that most of the crops under review (e.g. corn) face with the low gap of demand and the ability of domestic production in limiting the imports is low. Therefore, a significant portion of these products are imported from abroad. Given that the country is faced with a crisis of drought and water shortage problems, the price policies cannot eliminate this problem and help stabilize the market by encouraging increased production Thus, they lead to increased demand for imports. Under such circumstances, the only way to increase production in the country is enhancement of productivity in the agricultural sector. Of course, this is only possible in the long run. For products such as rice and meat the elasticity of substitution of domestic production with imports is small. In other words, if a policy is adopted that results in an increase in the price of these products, the share of these products of the total imports does not increase that much in comparison with other products. To support these products, policies can be used such as import tariffs in the short run. Since in the ECM model for the majority of products, the adjustment speed or the speed to move to the long-run equilibrium is slow, it is necessary to consider the harmful effects and consequences of shocks in the economy. Because if a shock is entered into the model, to correct the imbalance between short-run and long-run equilibrium and come back to long-run equilibrium needs a long time.
Keywords: Armington Elasticity, Autoregressive Distribution lags Model (ARDL), Currency Elasticity, Price Transfer
R. Esfanjari Kenari; M. Zibaei
Abstract
Climate change phenomenon is an important environmental challenge of the world. Increasing extension of greenhouse gases and remote relationship phenomena accelerate the speed f climate change. Changes in precipitation level, drought occurrence and changes in the level of surface and groundwater resources ...
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Climate change phenomenon is an important environmental challenge of the world. Increasing extension of greenhouse gases and remote relationship phenomena accelerate the speed f climate change. Changes in precipitation level, drought occurrence and changes in the level of surface and groundwater resources are the recognized consequences of climate change. In order to study consequences of climate change on agricultural production in Shiraz County, three well rings in Shiraz plain were selected. Mean statistics of water level in wells were regressed on the year during 1978-2008. Using annual statistic of precipitation during 1958-2008 and standard precipitation index (SPI), the probability of dry year incidence was determined. Effects of 5 pumping scenarios with consideration to the probability of dry year incidence were assessed, using two-stage stochastic programming. Results showed that water levels at the desired level of agricultural wells has significant decrease 0.4 percent (p=0.034). The long-run loss of income and farm income under the mild climate change and dry years were 4.5 and 6.4 percent. The short-term loss of income and agricultural income in the same scenarios were estimated from 54 and 30 percent to 74 and 85 percent, respectively. Agricultural water use in the short and long term was estimated less than the status quo. Reduction in water use leads to reduction in yield and farm income in the study area, however, prevents the long-term damages to crop production levels and underground water resources. Ultimately, implementing policies to improve farmer's incentives to sustainable use of water resources are recommended.
