Economic evaluation and Applications of the Policy Analysis Matrix of sole and intercropping of leguminous and cereals Case study: Shirvan city-Iran

Abstract

In this study, data collected from North Khorasan Jihad Agriculture and Almanac foreign trade statistics for 2008 to 2009 were used to assess economic and relative advantages of sole and intercropping of millet and bean in Shirvan city by using benefit indicators. By using benefit to costs index, internal rate of return, net present value and policy analysis matrix were calculated. The results show that intercropping was affordable than sole cropping. Sole cropping of these crops had no relative advantage, while mixed cropping had a relative advantage than sole cropping. Nominal protection coefficient index about sole cropping of bean and intercropping showed that indirect tax has been imposed on producers. The nominal protection coefficient of the input in all types of indirect subsidies for cultivation proved to be opened by the trade. Coefficient of effective support net about sole cropping of beans and intercropping was less than the unit and total input and product markets in these cropping systems were not supported. Finally, the social net profit in beans and millet sole cropping was negative; while intercropping was positive, indicating that intercropping has a social net profitability. Overall results show that sole cropping of millet and bean in current situations of Shirvan city has no relative advantage, but intercropping system can increase the economic benefits and relative advantage.

Key words: Policy analysis matrix (PAM), relative advantage, economic assessment, intercropping.