AN ECONOMIC ANALYSIS OF FACTORS AFFECTING SUPPLY RESPONSE OF AREA CULTIVATED WITH PEANUT IN IRAQ FOR THE PERIOD 1990 - 2010

	AN ECONOMIC ANALYSIS OF FACTORS AFFECTING SUPPLY RESPONSE OF AREA CULTIVATED WITH PEANUT IN IRAQ FOR THE PERIOD 1990 - 2010
journal of kerbala university
Article 1, Volume 7, Issue 3, 2011, Pages 1-9 PDF (0 K)
Abstract
In spite of the economic importance of peanut as an oil crop and an important source of protein, but it is still cultivated in limited area in the country as a whole. Most farmers do not cultivate peanut due to the difficulties facing them represented by the many operations that cost so much in addition to some diseases infecting it which can't be controlled easily and causing a decrease in crop quantity and quality. The aim of this research is to estimate the cultivated area response function of peanut on Iraq level for the period 1990 – 2010. The estimated results showed that the annual growth rates for the area and production of peanut on Iraq level affecting the cultivated area supply response and which have influence on farmers decisions were the previous year area of peanut then the previous year average price of summer vegetables as competitive crops and finally the previous year price of the crop, and the coefficients were significant at different levels of significance except the coefficient of peanut price. About 89% of total change in cultivated area with peanut was due to the changes in variables included in the model during research period. The values of short runt own and cross price elasticity's of the crop were (0.532) supply for peanut price and (-1.184) for summer vegetables average price and (0.282) for the irrigation water, while their values in long run were (1.46), (-3.24), and (0.77) respectively. Finally it was recommended to subsidize the main inputs for peanut production in order to expand the cultivated area in future .

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