Comparison of Support Policy Indices of Selected Crops In Iran and Developed Countries: Application of Policy Analysis Matrix

Iranian government relies on price-based measures (including guaranteed purchased price and subsidies on inputs and outputs) more than on budgetary payments to achieve agricultural policy objectives. Assessing the effects of these price-based measures is important to evaluating the degree of agricultural support. The policy Matrix Analysis was used to evaluate government support for selected farm products. The results were compared with OECD countries. NPCI values indicate that the government policies are reducing input costs for all crop producers. The effective protection coefficients (EPC) showed that there was a big difference in the degree of policy transfer across commodities. Meanwhile, the nominal protection coefficients (NPC) for developed countries in comparison with Iran were greater. In Iran the most important agricultural support policy was guaranteed purchase price and it was used as a single protection policy which did not work efficiently. Finally, some necessary changes in support policies are recommended.