Research Article
Agricultural Economics
M. Rezvani; M. Pendar; S.S. Hosseini; H. Rafiee
Abstract
Introduction
The economy of countries are always exposed to shocks, including the Covid-19 pandemic, which causes many problems. The Covid-19 pandemic had various effects and consequences in different sectors, including the agricultural sector. The decline in income and production, coupled with the ...
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Introduction
The economy of countries are always exposed to shocks, including the Covid-19 pandemic, which causes many problems. The Covid-19 pandemic had various effects and consequences in different sectors, including the agricultural sector. The decline in income and production, coupled with the loss of customers due to health quarantines and border closures, severely impacted farmers businesses and created many problems for activists of various sectors of the agriculture. One of the most important effects of the Covid-19 pandemic is the decline in global economic growth. This has led to increased unemployment, decreased purchasing power among the population, and consequently, a decrease in demand. According to the impact of the covid-19 pandemic on food demand resulting from disruptions in the supply chain and income shocks, this research aims to investigate the existence of a structural break in the preferences of Iranian consumers for livestock products (red meat, chicken, eggs, and milk) using the Quadratic Almost Ideal Demand System (QAIDS) and the switching regression framework developed by Ohtani & Katayama (1986) during the period from Spring 2015 to Winter 2022.
Materials and Methods
Nonparametric and parametric approaches are utilized to investigate structural break in consumer preferences. This research employs parametric approaches and the Quadratic Almost Ideal Demand System to assess the structural break. The switching regression framework proposed by Ohtani and Katayama (1986) is utilized to model structural changes in preferences. In fact, a time transition function is incorporated into the demand system. Based on the characteristics of demand in the literature of structural changes, the Bewley likelihood-ratio test is applied to select an appropriate model. To evaluate the structural break and calculate the price and income elasticities, the price and per capita consumption data of livestock products are required, and in this research, seasonal time series data for the period of spring 2015 to winter 2022 have been used. The information related to the price of livestock products was obtained from the Joint Stock Company of the Support of Livestock Affairs. To obtain the per capita consumption, first, the information on the amount of production of red meat, chicken, milk, and egg are received from the joint stock company for livestock affairs. Then, by summing the amount of production and the amount of import of red meat, chicken, milk and eggs and deducting the amount of export from the said amount and dividing it by the population of the country, the amount of consumption per capita are calculated. The amount of export and import of red meat, chicken, milk and eggs is taken from the export and import report of the Ministry of Agriculture (Jihad), which is published monthly.
Results and Discussion
To estimate the system equations, one equation was removed, and the remaining equations were solved and estimated based on the removed equation. Accordingly, the equation related to milk was removed and the QAIDS with 33 parameters and three equations including those related to red meat, chicken and egg were estimated using the maximum likelihood estimator non-linearly. The results show the Based on the statistics of log-likelihood and DW the existence of a sudden structural break as a result of the Covid-19 pandemic. Comparing the Bewley likelihood-ratio test statistics calculated for an Non-Restricted QAIDS (with structural break) and a Restricted QAIDS (without structural break) with a critical χ^2 value with degrees of freedom of nine at the probability level of 5% indicates that the Non-Restricted QAIDS is selected as the appropriate functional form. Also, the results show that after the Covid-19 epidemic, the own price elasticity of red meat and chicken has increased significantly. Considering the high elasticity of the price of red meat, chicken and eggs after the Covid-19 epidemic, it is suggested that the government utilize price tools such as electronic coupon system to support consumers.
Conclusion
Due to the high cross-elasticity coefficients of demand for red meat, chicken and eggs after the Covid-19 pandemic, it can be expected that a change in the price of one of the red meat, chicken and egg products will significantly change the demand for the other product. Therefore, in case of a price increase in one of the products, it is suggested to consider special discounts for other products to support the consumers.
Research Article
Agricultural Economics
H. Mehmandoost; A. Sargazi; A. Keikha; S. Ziaee; A. Sani Heidary
Abstract
Introduction
This research investigates the capacities and factors influencing entrepreneurship development in the rural areas of Hamun County. Given the importance of entrepreneurship in creating employment, reducing poverty, and improving the quality of life in rural regions, identifying and analyzing ...
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Introduction
This research investigates the capacities and factors influencing entrepreneurship development in the rural areas of Hamun County. Given the importance of entrepreneurship in creating employment, reducing poverty, and improving the quality of life in rural regions, identifying and analyzing key factors in this context is essential. The significance of rural entrepreneurship lies not only in its potential to stimulate local economies but also in its ability to foster social cohesion and community development. As highlighted by Petrin (1992), entrepreneurship serves as a central force for economic growth in rural areas, and without it, other developmental efforts may prove ineffective. Thus, understanding the dynamics of rural entrepreneurship is crucial for policymakers and stakeholders aiming to enhance the livelihoods of rural communities. In light of the challenges and opportunities present in rural entrepreneurship, this article aims to identify effective factors influencing entrepreneurial development while reviewing existing literature. By categorizing these factors into human and individual, infrastructural, cultural, economic, and social dimensions, the study seeks to provide a comprehensive analysis that can inform future initiatives aimed at strengthening entrepreneurship in these areas. The findings are expected to offer practical recommendations for enhancing the entrepreneurial ecosystem in Hamun County.
Materials and Methods
The present study utilized a stratified random sampling method, involving 278 entrepreneurs and individuals active in rural business sectors. The research categorized influential factors into six primary groups: human and individual factors, infrastructural factors, cultural factors, economic factors, and social factors. Data analysis was conducted using Stata and Excel software to model relationships among these variables effectively. This structured approach allows for a nuanced understanding of how different factors contribute to or hinder entrepreneurial development in rural contexts.
Results and Discussion
The results indicate that "government support and subsidies for production," "income," and "diversification of rural products" play significant roles in explaining and influencing entrepreneurial behavior from an economic development perspective. In terms of cultural and social aspects, "experience," "consultation and support services," "awareness levels," and "interest in village improvement" were found to have substantial impacts on entrepreneurial behavior. From an infrastructural standpoint, "access to services and facilities" along with "access to a dynamic rural environment" emerged as critical determinants explaining the variance among extracted factors. Furthermore, regarding individual aspects of entrepreneurial development, findings revealed that "motivation," "education," "psychological resilience," and "management creativity" significantly contribute to explaining variations in behavior among entrepreneurs. The results indicated that among various influencing factors on entrepreneurship development, economic factors, cultural and social factors, institutional and educational factors, as well as infrastructural factors had positive and significant effects on the likelihood of individuals achieving high levels of entrepreneurial motivation.
Conclusion
Among the identified indicators, government support and subsidies for production had a more substantial impact on income levels while diversification of rural products significantly influenced entrepreneurial behavior from an economic development perspective. In terms of cultural and social dimensions, experience, consultation services, awareness levels, and interest in village improvement were crucial for explaining variations in entrepreneurial behavior. From an infrastructural perspective, access to services and facilities alongside access to a dynamic rural environment played a decisive role in explaining the variance among extracted factors. Finally, individual development aspects revealed that motivation, education, psychological resilience, and management creativity significantly contributed to variations in behavior among entrepreneurs. The findings suggest that within the studied villages—specifically Mohammadabad, Ali Akbar Town, Dek Dehmardeh Town, Sanjoli Town, Mir Town, Bandei Town, and Kermani—there are ideal conditions for entrepreneurship compared to other assessed villages. Furthermore, using an ordered logit model revealed that economic indicators along with cultural-social factors significantly influence individuals' motivations for entrepreneurship. This expanded introduction provides a comprehensive overview of your research topic while highlighting its significance within the broader context of rural entrepreneurship development.
Research Article
Agricultural Economics
M. Bahadori; B. Rahimi Badr; A. Nikouei; R. Eshraghi Samani
Abstract
Introduction The seed industry is a growing industry in the world, and the role of processed seeds in increasing the production performance is undeniable. Due to the population growth, the importance of achieving food security is increasing. Healthy seed is one of the important factors in the development ...
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Introduction The seed industry is a growing industry in the world, and the role of processed seeds in increasing the production performance is undeniable. Due to the population growth, the importance of achieving food security is increasing. Healthy seed is one of the important factors in the development of agricultural production. Although agricultural production systems have increased their production, it does not seem to be enough, though. The basic problems of the seed market and insufficient supply of seeds required by farmers have made it necessary to identify samples of seed quality development. The current research was the first research at the national level dealing with the design of a conceptual model for the development of control and certification of wheat seeds using the grounded theory method and prioritization of effective factors. Materials and MethodsThis research had a fundamental-applicative goal and was applied in at two stages. In At the first stage, after designing the interview questions, the grounded theory was carried out in three stages of open, central, and selective coding using a systematic approach in order to design a conceptual model. After designing the paradigm model and identifying the factors affecting the development of seed control and certification, the prioritization of the components was done including technical, social, economic and structural criteria using analytic network process. Results and DiscussionAfter analyzing the interviews, 140 initial codes were identified and the initial codes were reduced to 94 and then to 47 concepts. In the following parts, 11 core categories including processed seed production standards, laws and regulations, environmental factors, regulatory factors, equipment and technology, stability in the seed market, government support policies, human factors, wheat seed quality, attitude and awareness, and economic infrastructure were identified. The results of prioritization among the four effective criteria on the development of seed certification indicated that the technical criterion was more important than the other three criteria. In terms of the prioritization of the components, the quality of the seed kernel having a weight of 0.49, the performance of the responsible expert having a weight of 0.44, the cost of producing processed seeds having a weight of 0.39 were the first priority of technical, social, and economic criteria. Applying the ranking of production units with a weight of 0.57 and making the seed market competitive with a weight of 0.26 were more important than other components of structural criteria. ConclusionAccording to the results of this study, and the first priority of the technical criterion, it is suggested to monitor the quality of seed kernels and select appropriate farm inspectors. Moreover, in order to strengthen the human resources system, it is recommended to hold continuous courses in the field of seed quality. To implement the solutions of the paradigm model, it is recommended to prevent buying and selling unhealthy seeds and balance the costs of producing and selling processed seeds.
Research Article
Agricultural Economics
T. Usefi Farahabadi; S. Shirzadi Laskookalayeh; F. Kashiri Kolaei; Kh. Abdi Rokni
Abstract
Introduction
The agricultural sector in Iran holds significant importance due to its substantial capabilities and capacities. This sector is full of risk and uncertainty. Risks and crises significantly influence producers’ behavior, shaping both the income derived from their products and their ...
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Introduction
The agricultural sector in Iran holds significant importance due to its substantial capabilities and capacities. This sector is full of risk and uncertainty. Risks and crises significantly influence producers’ behavior, shaping both the income derived from their products and their decisions regarding input use and product supply. Since individuals’ attitudes toward risk vary, effective risk management in the agricultural sector is a critical concern for farmers and stakeholders alike. Risk management encompasses the application of diverse methods, tools, and policies designed to mitigate the adverse impacts of different types of hazards. Risk and crises influence the behavior of producers, and the outcomes of these are reflected in their effect on the income generated from products and farmers' decisions regarding the use of inputs and product supply. People's attitudes toward these risks differ. Therefore, risk management in the agricultural sector is a critical issue for farmers and stakeholders in this field. Risk management refers to the use of various methods, tools, and policies to reduce the negative impacts of various types of hazards. Strategies such as crop diversification, contract farming, producing crops in exchange for guaranteed prices, and intercropping complementary crops can help mitigate their negative effects by spreading or distributing risks among individuals, organizations, products, and different options. Given the importance of this issue, the present study investigates the impact of risk aversion on crop diversification in the northern Rudpay region of Sari County.
Materials and Methods
In this study, the degree of risk aversion is calculated using the Multi-Attribute Utility Function (MAUF) method. This technique is based on calculating the weight of risk and, as a result, the risk aversion coefficient. This method is based on weighted goal programming. In this research, the two-stage cluster analysis method is used to classify the risk aversion coefficient. Finally, to examine the impact of risk aversion on crop diversification, the Tobit model will be used. The degree of crop diversification will be analyzed using the developed Herfindahl index. The data required for the research, such as water, land, fertilizer, and capital, were partly provided by centers affiliated with the Ministry of Jihad Agriculture in Mazandaran Province. The rest, such as the cropping patterns of each farmer, were collected through the completion of questionnaires and using simple random sampling in the northern Rudpay region.
Results and Discussion
Based on the classification, only one farmer is considered risk-neutral. This indicates that this individual among the farmers of the northern Rudpay region is indifferent to risk and chooses activities without considering their level of risk. In other words, the presence or absence of risk in performing activities is not a concern for them. The next category, which includes 24 individuals, indicates that 10% of the farmers have low risk aversion. The final category shows that 225 individuals (90%) of the sample fall into the high-risk aversion category. Therefore, as observed, the dominant tendency among the studied individuals is high risk aversion. This result suggests that farmers in the region are only willing to adopt new phenomena, such as modern programs and technologies, if they expect or anticipate a higher return compared to the current situation.
The results of the Herfindahl index analysis show that the average crop diversification index is 0.57, which, according to various studies, is a reasonable and acceptable value. Nearly 70% of the farmers, with an index below the average Herfindahl value, have crop diversification and include different products in their cropping patterns. Furthermore, the results indicate that there is no significant relationship between crop diversification and the farmer's age, while variables such as the risk aversion coefficient, the farmer's education, farm size, and the share of agricultural income have a significant effect on crop diversification.
Conclusion
Considering that agricultural products are generally produced in a risky and uncertain environment, this study aimed to calculate the degree of risk aversion of farmers in the northern Rudpay region of Sari County using the Multi-Attribute Utility Function. The results from determining the risk aversion level of farmers in the northern Rudpay region in the first part of the study show that the majority of farmers in the region have a strong degree of risk aversion. The results of examining the impact of socio-economic variables on crop diversification show that there is no significant relationship between crop diversification and the farmer's age. However, variables such as the risk aversion coefficient, the farmer's education, farm size, and the share of agricultural income have a significant effect on crop diversification. The share of agricultural income had the most significant impact on the choice of management tools for crop diversification. Specifically, as the share of income from agriculture increases, the likelihood of using management tools increases by 0.06%. Given the positive impact of education and income on the use of risk management tools, it is recommended to enhance farmers' awareness through agricultural extension programs and increase farmers' income by improving their cropping patterns.
Research Article
Agricultural Economics
N. Asiabani; A. Kazempour Kahriz; M. Hassani Moghaddam; A. Dourandish; A. Ghasemi
Abstract
Introduction
Rice is one of the oldest and most important cultivated crops and consumed food items in the world, and half of the world's population depends on rice as a staple food. This product is of great importance in the food basket of Iranian households, and as a basic and strategic commodity, ...
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Introduction
Rice is one of the oldest and most important cultivated crops and consumed food items in the world, and half of the world's population depends on rice as a staple food. This product is of great importance in the food basket of Iranian households, and as a basic and strategic commodity, its supply through domestic production and imports plays an important role in ensuring the country's food security. Over the past two decades, the Iranian rice market has undergone notable transformations. The increase in rice imports, coupled with a decline in domestic production, has gradually diminished the share of Iranian rice in household consumption baskets. Imported rice, particularly from neighboring countries like India and Pakistan, has gained popularity due to its competitive pricing, adequate quality, and effective marketing strategies, replacing domestic rice in many cases. These trends have raised significant concerns about whether such changes signal a fundamental shift in consumer preferences or merely reflect temporary market dynamics influenced by external factors. The objective of this study is to critically analyze the stability of consumer preferences for rice in Iran using advanced non-parametric methodologies, specifically the Weak Axiom of Revealed Preferences (WARP) and the Generalized Axiom of Revealed Preferences (GARP). By doing so, the study seeks to distinguish between structural changes in consumer loyalty and transient factors shaping consumption patterns.
Materials and Methods
This research investigates consumption preferences for domestic and imported rice over a twenty-year period, from 2003 to 2022. The analytical framework includes constructing normalized WARP matrices to evaluate the adherence to revealed preference principles, coupled with statistical tests like the Kruskal-Wallis test to assess the stability and coherence of consumer choices over time. Price and per capita consumption data for domestic and imported rice were meticulously sourced from national databases, normalized using grain-specific consumer price indices to account for inflationary effects, and analyzed computationally using MATLAB software. This methodology allows for a comprehensive exploration of preference dynamics while ensuring the robustness of statistical evaluations. In addition to quantitative analyses, the study considers qualitative aspects of consumer preferences, including cultural and economic factors that may influence purchasing decisions.
Results and Discussion
The results indicate a strong resilience in consumer loyalty towards domestic rice, despite temporary increases in the market share of imported alternatives. Four instances of violations in consumer preferences were observed during the study period; however, these violations were determined to be transient and attributable to non-systematic shocks, such as seasonal consumption trends, temporary price fluctuations, or short-term economic pressures. The Kruskal-Wallis test confirmed the stability of consumer preferences by indicating no statistically significant structural breaks. Similarly, GARP analysis validated the rationality and consistency of consumer behavior, as all violations remained within the acceptable margins of measurement error, suggesting no deviation from stable preference patterns. These findings align with previous studies examining consumer preferences, reinforcing the notion that Iranian consumers exhibit steadfast loyalty to locally produced rice. Moreover, the study highlights the temporary nature of market pressures favoring imported rice, emphasizing the opportunity to reestablish the competitive edge of domestic rice through targeted interventions.
Conclusion
The findings of this study highlight the persistent preference of Iranian consumers for domestic rice over the past two decades, despite competitive pressures from imported rice in terms of price and quality. To promote the sustainable growth and competitiveness of the domestic rice industry, this study proposes several strategic recommendations:
Research Article
Agricultural Economics
F. Shafiee; O. Jamshidi
Abstract
IntroductionMedicinal plants, as a group of plants originating from natural resources and possessing therapeutic properties, play a remarkable role in health, employment, and economic development of the human being. The cultivation of medicinal plants has garnered significant attention in recent years ...
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IntroductionMedicinal plants, as a group of plants originating from natural resources and possessing therapeutic properties, play a remarkable role in health, employment, and economic development of the human being. The cultivation of medicinal plants has garnered significant attention in recent years in the Mazandaran Province, particularly in rain-fed farmlands. These cultivations could generate considerable added value within the sustainable agriculture framework, increase farmers' income, and, as a result, mitigate rural-to-urban migration. Nevertheless, despite efforts to develop these cultivations, various challenges still exist in their sustainable development pathway. Materials and MethodsThis study aimed to identify the development pattern of medicinal plant' cultivation in the rain-fed farmlands of Mazandaran Province. To do so, the grounded theory was employed for data analysis. The study population comprised 16 experts, specialists, and pioneering farmers who were actively working in the medicinal plants' field of Mazandaran province and were selected through a purposive sampling method. Data were collected through in-depth semi-structured interviews and analyzed using MAXQDAV24.4.1 software. A three-stage conventional content analysis process, including open, axial, and selective coding, was utilized to recognize the relationships between components and factors that influenced the development of these cultivations. According to the findings, five main components influencing the development of medicinal plant cultivation were detected in the rain-fed farmlands of Mazandaran Province. Results and DiscussionThe first and most important detected component was "the causal conditions' component", which included the following subcategories: the role of medicinal plants’ cultivation in employment, added value, the improvement of agricultural economics in the rain-fed farmlands, production management and expansion of processing companies active in the medicinal plants’ value chain, and finally focusing on cultivation of sustainable, industrial, and high-demand medicinal species. Farmers require accurate information and technical support for the successful cultivation of medicinal plants, which should be provided by governmental and private institutions. The second obtained component was named the contextual conditions' component", which was primarily attributed to the following subcategories: market challenges, ecological and environmental capacities of the rain-fed farmlands used for medicinal plants' cultivation, climatic capacities, suitable lands of the province, and weaknesses in processing and supplementary industries. Mazandaran Province has extraordinary potential for cultivating various medicinal plants because of its climatic diversity and suitable soils. Furthermore, noticeable market opportunities for medicinal plants, especially in the pharmaceutical and food industries, would motivate farmers to grow larger amounts of them on their farms. The third component was called "intervening conditions, which was predominantly attributed to the following subcategories: selecting compatible plant species with the region's ecosystem, the necessity of farmers' financial and institutional support, difficulties in trading medicinal plants, and eventually structural and planning challenges. The lack of advanced processing industries and weaknesses in the marketing of medicinal plants are among the distinguished bottlenecks preventing farmers from exploiting these plants. The fourth component was determined as the strategies' component", which included the following subcategories: empowering farmers, education and extension of sustainable cultivation, utilizing mechanization in agriculture, providing financial facilities, supporting farmers through guaranteed purchases, and modelling and showcasing medicinal plant cultivation in the model sites and pilot projects. The use of modern agricultural techniques and continuous training of farmers can reinforce the cultivation of medicinal plants. Furthermore, financial support and improved access to financial resources, particularly for small- and medium-sized farmers, are indispensable. The fifth component was identified as "the consequences' component", which referred to the following subcategories: improving sustainable employment, utilizing specialized human resources, and developing the economic situation of rural communities. Developing medicinal plant cultivation could lead to employment generation in various sectors, including the production, processing, and marketing of medicinal plants, and could improve farmers' livelihoods and reduce their migration rates. ConclusionBased on these findings, a comprehensive and multifaceted approach is necessary for the sustainable development of medicinal plant cultivation in the rain-fed farmlands of Mazandaran Province. In addition, strengthening infrastructure and processing industries, financial support, and required facilities should be considered by both the government and private sectors. Developing stable markets through guaranteed purchases and establishing strong supply chains can effectively reduce production risks. Education and extension of sustainable agriculture, and adoption of modern technologies are also crucial factors that are compulsory for the success of these cultivations. Ultimately, considering the favorable ecological conditions and existing potential of Mazandaran Province, the development of medicinal plant cultivation can be regarded as a suitable solution for the economic and social development of this province.
