Journal of Research on Crop Ecophysiology
Volume:4 Issue: 2, 2009

The comparative advantages and competitiveness and effective protection coefficient of Lorestan's major agricultural crops was assessed were assessed using a policy analysis matrix (PAM) and 1383-1384 production cost data released by ministry of Jihad-e-Agriculture. The following commodities: were considered irrigated and rain-fed Wheat, irrigated and rain-fed barley, irrigated corn, paddy (rice), irrigated and rain-fed chickpeas, irrigated and rain-fed lentil, sugar beet, tomato, cucumber, potato, irrigated beans, irrigated and rain-fed rapeseed. The economic profitability is estimated by domestic cost resources ratio (DRC), the finding demonstrate that Lorestan province has a comparative advantage in major agricultural crops, and a disadvantage in paddy (rice) and rain-fed wheat. Vegetables (potato, cucumber, and tomato), oilseed crops, corn and pulses are more profitable than other crops, within the grain sector. Within the selected commodities, cucumber, potato, tomato has a more comparative advantage than the others. The nominal protection coefficient (NPC) measures the level of protection for the tradable output by looking at the ratio of the revenue at private price above the revenue at social (shadow) price for all crops smaller than one (except paddy), meaning that the price in the international market is higher than the local market by the same former ratios. On the other hand, the implication that all crops production system is the tax imposed by the government. NPCI measures the level of protection for the tradable input by looking at the ratio of the tradable input cost at private price above the tradable Input cost at shadow price for all crops smaller than one indicating that the policies are reducing input costs for all commodities. The values of the effective protection coefficient (EPC) compares the added value at private price to added value at shadow price, for wheat, barley, sugar beet, rapeseed and paddy is above one indicates that the system benefit from protection. For other crops EPC is below one which means that the system is the tax imposed. The value of social cost benefit (SCB) ratios led to only a slight change in commodity ranking compared to the estimated DRCs