Investigation of Comparative Advantage and Private and Social Profitability of Major Agricultural Products in Gorgan County

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Authors

1 Gorgan University of Agricultural Sciences and Natural Resources

2 Agricultural Economics Department, Gorgan University of Agricultural Sciences and Natural Resources

3 professor, Department of Geography, Faculty of Science, Ghent University, Ghent, Belgium

Abstract

This study examines the comparative advantage and private and social profitability of major crop production in Gorgan County during the 2022-2023 cropping season using the Policy Analysis Matrix (PAM). The required data were obtained from the production cost database of the Ministry of Agriculture Jihad, the FAO, and the NETWAT software. The indices analyzed include Domestic Resource Cost (DRC), Nominal Protection Coefficient (NPC), Effective Protection Coefficient (EPC), private profitability, and Net Social Profitability (NSP). The results indicate that, based on the DRC index, the production of high-yield rice, premium rice, soybeans, wheat, and canola has a comparative advantage, whereas cotton and potato production lack this advantage. The NPC index reflects indirect subsidies for the producers of all crops except rice farmers.
Furthermore, the EPC index shows that the government supports the input and output markets for all crops except premium rice. According to the NSP index, soybean, wheat, and canola production have positive social profitability, while cotton and potato production exhibit negative social profitability. Rice production demonstrates the highest private and social profitability, with high-yield rice outperforming premium rice in private profitability due to higher yields and lower costs. Based on the findings, the production or expansion of soybean, wheat, and canola cultivation is recommended, while increasing the cultivation area of potatoes and cotton is not advisable under current conditions. It is advised that regional cropping patterns be designed and implemented with due consideration of the comparative advantage and private and social profitability of agricultural crop production.

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Main Subjects

Journal of Studies in Entrepreneurship and Sustainable Agricultural Development

Articles in Press, Accepted Manuscript
Available Online from 29 April 2025

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