An Investigation about the Impact of Government Support Policy on Cropping Area and Wheat Production in Fars Province

Government supporting policies in the case of strategic crops have been inclined toward consumers. The polices influence farmers cultivation pattern. Nominal Protection Rate is as a measure to investigate the impact of government pricing polices on crop production. The impact of government pricing policy on wheat growers response over 1353-1385 (1974-2006) was studied using Cointegration analysis. Fluctuations of nominal protection rate during the selected period revealed that price polices have not been flexible in proportion to the changes in conditions. Nominal protection rate of less than unity over the study period indicates that not only wheat growers have not been supported but also have paid tax implicitly. The cointegration analysis showed a positive long run relationship between nominal protection rate and cropping area as well as wheat production.