Effects of Exchange Rate Policy on Iran's Agricultural Subsections Support Estimates

Formation of a strong agricultural sector requires the implementation of appropriate support policies that without a picture of the support structure is not available. In this study، producer، consumer، total and general services support estimate indices (PSE، CSE، TSE، GSSE) have been calculated for agricultural products using real and equilibrium exchange rates and effects of exchange rate misalignment has evaluated for 1981-2010 and forecasted from 2011 through 2015. Results revealed that the estimated level of agricultural support estimates were sensitive to exchange rate، pricing and budget policy of state. Return to continuous change in agricultural policy، these indices have many fluctuations. So that، during the 1981-88 because of over valuation of rial، PSE was 4/14 percent. While in 2005-2010، undervaluation of riyals induce producers to pay 3/10% from their income as a hidden tax that CSE sign was inverse of it. TSE of Agriculture and livestock sub-sections was possitive for most years، as horticulture subsector TSE index was negative. It is recomended، combining sectoral and exchange rate policies through increasing global competitiveness، support agriculture producers and consumers.