Economic Analysis of Modifying Cropping Patterns in Selected Regions in Iran

Abstract

This dissertation examined the implications of modifying cropping patterns in four major regions in Iran (East and West Azarbaijan, Kurdistan and Khuzestan).

The objectives of this study were to: (1) to investigate the overall economic situation, industry and agriculture in Iran, (2) to review regional differentiation in agriculture in these regions to show the factor combination that will improve productivity, (3) to compare the present cropping system with the proposed cropping pattern within the framework of the partial budgeting program, and (4) to evaluate the results of the analysis and suggest alternatives that may shift the operation to a more productive system in these major regions of Iran.

The study shows that expansion of cultivated land on typical farms in regions under investigation lead to different results under each investigation. Typical small farm operators could expect significant increases in net income under alternatives B, C, C. and C in Azarbaijan (East and West), Kurdistan and Khuzestan respectively. In other words, it is possible to encourage the farmers to change some of their current cropping pattern in cultivation and land utilization in order to increase productivity in the area.

A sensitivity analysis was performed in this study in order to investigate the effect on the optimal solution provided by the budgeting program. The effect of variation in the parameters on the equilibrium was also observed.