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October 24, 2024

The Damaging Policies of the Government in Agricultural and Horticultural Management/Mohammad Momenzadeh

The market for agricultural and horticultural products, as the most important source of food supply for the people, has a significant share in the country’s economy. However, this sector of the economy in our country is facing serious challenges.

Agriculture and horticulture are considered among the most risky and vulnerable jobs in our country. However, given these risks, it is expected that farmers will be supported by relevant government institutions. In this regard, there are important issues to consider: location is very important in farming, whether we want to produce for domestic consumption or for export? The province we choose, the type of product that the country prefers, and being unaware of the details can all have an impact. Production should be suitable for the market. Education is also very important. Agriculture is a science. The discussion of production and harvesting must be included in education. Many factors are not taken into consideration in harvesting, both for domestic and export markets. The transportation system is also diverse. The destination for distribution is also important in production. Whether we sell the product in the county or in big cities? Is it for domestic consumption or for export? The forces that are active and monitoring in this process are also important.

Agricultural product markets (for the supply of various fruits, vegetables, meat, dairy products, etc.) with similar features to Iran’s fruit and vegetable markets are common in other countries, both developed and developing, and are considered important infrastructures for ensuring food security for citizens, supporting small-scale farmers on the outskirts of cities, and regulating the market. Learning from the experiences of other countries, the development of similar markets to Iran’s fruit and vegetable markets, both quantitatively and qualitatively, has always been on the agenda of developed and developing countries due to their important role in ensuring food security for citizens and strengthening the agricultural sector. This confirms the necessity of developing fruit and vegetable markets in different parts of the country.

On the other hand, the reduction of intermediaries and the expansion of direct supply of products by farmers, including the main approaches to improve and activate markets for these products in the world. The experience of improving markets for fruits and vegetables in major cities in China is a successful example, so it is necessary to pay sufficient attention to it in the development of fruit and vegetable fields in Iran and to reduce or limit the activities of intermediaries in these fields.

The agricultural sector is one of the sectors that, due to its impact on the economy, is a priority for policymakers in all countries; however, despite supportive policies, this sector has not been able to have the desired impact on the country’s economy.

According to the report of the Research Center of the Parliament, the share of agriculture in Iran’s economy has decreased from 26% in 1339 to less than 10% in 1397. With these conditions, it can be said that the agriculture sector has used its surplus labor and capital in its own growth and development, making it available to other economic sectors. Considering the importance of the agriculture sector in production, employment, and food security, different countries, whether developed or developing, support this sector through various methods such as supply and distribution of inputs, guaranteed purchase, market regulation, subsidies, investment incentives, and other related areas. Each of these tools has specific goals and is designed to be used in specific conditions. Therefore, policymakers and planners of this sector must consider these characteristics, conditions, and potential consequences of each product and use the appropriate tools.

Researchers in the field of agricultural policies have presented various divisions of agricultural policies. These researchers have divided agricultural policies into two categories: “allocative policies” and “distributive policies”. Allocative policies are implemented to address inefficiency or market failure in resource allocation, while distributive policies aim to redistribute income among different segments of society and support target groups against other groups. In fact, allocative policies are a response to inefficiency or market failure.

Furthermore, due to the possibility that the allocation made by market forces may not be accepted or fair by the target community, distribution policies are put on the agenda. In many cases in Iran, the cost of agriculture is higher than the income for farmers. Similarly, the government forces farmers to produce and sell rice at a low price. In this case, the rights of these farmers are seriously affected. Farmers’ insurance does not provide serious support for this hard-working group; farmers who, after spending a lot of money to produce their products over several months, are faced with heavy losses after a frost and ultimately, after a long delay, receive minimal compensation from insurance companies.

Farmers and gardeners have become discouraged from insuring their crops, both agricultural and horticultural, as the amount of insurance for agriculture is so low that farmers have no incentive to insure. It seems necessary to review and make reforms in this area so that farmers and gardeners are encouraged to insure their products.

It should be noted that agriculture and sustainable rural development revolve around three fundamental indicators, including job creation, income in rural areas, and food security in order to preserve natural resources and the environment and eradicate poverty. One of the most important challenges in the agricultural sector is the improper and destructive use of water resources, a three-fold increase in the country’s population over the past 40 years, a decrease in useful land area, repeated use of land, lack of cultivated land, a decrease in the efficiency of fundamental production factors such as water and land, and the unprofitability of production in this sector. These factors, along with the aging of the population of farmers, have caused this important economic sector to gradually face crisis and instability over time.

Given the geoeconomic limitations and Iran’s location in a semi-arid region, improving water efficiency is essential for solving the problem of water scarcity and preventing excessive imports of agricultural products. According to Article 25 of the Law on Increasing Efficiency in Agriculture and Natural Resources, the importance of determining and improving water efficiency indicators in agriculture and taking necessary measures to improve them has been emphasized. Implementing this law can be the most fundamental step in this regard. Solving this challenge requires the development of new laws and institutions for water management, new policies for crop patterns, increased participation of farmers and relevant organizations in decision-making, the formation of watershed councils, necessary technical and infrastructural measures, and the enhancement of knowledge and technical and research capabilities of farmers in these areas.

If we only focus on water management, considering the scarcity of water resources, the irrational cultivation of agricultural and horticultural products with high water demand in drought conditions, water exports, depletion of surface water resources, and uncontrolled cultivation of water-intensive products such as watermelon, especially in drought and even worse conditions, all indicate the damaging policies of the government in managing agriculture and horticulture; in general, effective implementation of targeted policies to address market inefficiencies in resource allocation, as well as effective distribution policies aimed at redistributing income among different segments of society and supporting targeted groups against others, are among the solutions to reform the damaging policies of the government in managing the agriculture and horticulture sector.

Created By: Mohammad Mamandzadeh
June 22, 2021

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Agriculture Mohammad Momenzadeh Monthly Peace Line Magazine Number 122 peace line