Impact of Agricultural Price Policy on Major Crops in Egypt

Abstract

Agricultural production, like other economic activities, is affected by the success of agricultural economic policies pursued by government from leaving the farmer free to cultivate his land with the desired crops and to take his production and marketing decisions in light of the mechanisms of supply and demand and the movement of prices in the markets without any intervention by the government. Therefore, the government's intervention influences the farmers' desire to grow any of the crops through its agricultural policies by imposing taxes or subsidizing inputs. To achieve the research objectives, we applied the Policy analysis matrix, where is one of the essential modern methods used in policy analysis. Besides, it helps to examine the impacts of government intervention policies across different stages of the flow of goods. In addition, it helps to assess and measure such policies' efficiency in achieving the hoped-for objectives and examine their impacts on producers, consumers, and the macro-level economic conditions. The Policy Analysis Matrix (PAM) can be calculated by calculating nominal and effective protection coefficients and then identifying the policy adopted by the government, whether it is a protectionist policy or a policy of direct or indirect taxes on the producers of those crops. Also, the calculation of the cost of domestic resources to determine the relative advantage. Where wheat, maize, rice, and potatoes are among the most crucial strategic food and industrial crops in Egypt.