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Abstract

The main objective in this study was to evaluate goverment guaranteed purchasing policy as a protection measure in the production of cotton, dates, potatoes, onions and raisins during 1978-2002 in Fars province. In this regard, nominal and effective protection rates were assessed as criteria for evaluating the degree of government intervention. Based on calculated nominal protection rates, none of the studied products, especially cotton, have benefitted from protection by the government. Moreover, calculated effective protection rate evaluations that implementation of revealed subsidy policy through subsidizing production inputs has failed to reduce intermediate costs to the extent that can offset negative effects of nominal protection. Thus, the policy should be rearranged in Fars province to step by step abolish government intervention. This may result in not only decreasing government expenses but aslo strngthening of the agriculture sector. Also, findings on relation between government protection and cropping areas in cotton, date and potato revealed the fact that there are no certain effects of government policies on expansion of cropping areas in these products. This is while technology is the most important factor in expanding area under cultivation of these crops.

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