International Journal of Food and Agricultural Economics (Jul 2019)
CLIMATE AND GOVERNMENT'S GUARANTEED PRICE POLICY EFFECTS ON THE MAJOR OILSEEDS CULTIVATION AREA AND LAND RENTAL IN IRAN
Abstract
One of the important targets of government policy in agriculture sector is to increase the cultivation area and production level of strategic goods such as oilseeds due to the wide dependence on imports in the supply chain of vegetable oil. This study aimed to assess the impacts of climatic factors and government policies (both uncontrollable and controllable factors) on soybean and canola cultivation area and land rental in some provinces of Iran using data collected over 2001-2016. For this purpose, Ricardian model and panel data approach were applied. The results revealed the great influence of rainfall and temperature changes on soybean and canola cultivation area in Iran. Guaranteed prices for soybean and canola had a positive significant effect on the crops cultivation area. On the other, adoption of the self-sufficiency policy for wheat production through increasing the guaranteed price impeded development of oilseed cultivation area. Unlike for canola, increased wheat cultivation area had, however, no statistically significant influence on soybean cultivation area. Overall, decreased precipitation and air temperature warming are anticipated to negatively impact oilseeds cultivation area and land rent.
