-

Abstract

Regarding the role of agricultural sector in the process of economic development, its important place in reaching economic independency is expectd.Regarding the objective of price adjustment system which is being adopted in the economy of the country, it is predicted that the relative price of agricultural products would be faced with a significant changes.Therefore the aim of the authors is to identify the effects of price polices on the cultivated areas of basic products in the past and provide a clear future of price adjustment for the policy makers.A number of descriptive and econometric methods are used to analyze the data. In doing this , a function for cultivated area is estimated for period(1359 -1372) . The results indcate that the relative price has positive and significant effect on cultivated area for four products (i.e. wheat , barely, rice and cotton). But the level of increased in cultivated area was not enough that can help to reach the target of self - sufficiency in producing basic agricultural products ; while most of developed countries have successful experience from pricing measures which is used tp direct the production factors towards producing basic agricultural products.

Keywords