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A Survey Programs and Policies of Iran Government in Agricultural Sector and Effects on Villags Economic in Kermanshah Province

Mohammadreza Abbasi*, Narges Azimi, Mahdi Jalilvand

Agriculture Economic and Development, Manager of Rural Research Central, Kermanshah, Iran

Abstract: Kermanshah, as a rich region in climatic peculiarities and fertile lands, has been one of the agricultural important provinces since ancient times. Rich harvest has always been in Kermanshah. the government has developed and implemented different projects and various strategies in Kermanshah both in pre-revolutionary period and in the last 30 years as a result of which different outcomes have been registered. The main objective of this work is the study and analyses of those programs and strategies, as well as the discussion of the positive and negative impacts of the achieved results on the agricultural economy against the comparison and evaluation of other countries’ practice. At the end of those comparisons we’ll also offer our conclusions and suggestions which will contribute to the improvement of the agricultural programs and to the increase and development of the agricultural sphere. the method of study is documentary and the existing documents, information and data have been used. An open survey has also been carried out among the peasants of the Kermanshah province as a result of which statistical data have been identified The field in the rural province of Kermanshah and interviews with people in the rural community of our survey form is a sample size of 324 participants from 14 city of the province were selected by experts professionals 12 index consider in this paper to analyze the data spss program also swot analysis for a better understanding of the strengths and weaknesses and has been created the opportunities and threats that the program from perspective the Villagers of government programs was successful in the field of Promoting and training and of mechanization and providing the agricultural tools and water supply and the development of new irrigation systems to increase rural incomes and improve their economic status.

Keywords: program, Kermanshah, rural income, policies, agriculture

Received February 23, 2015; Revised March 25, 2015; Accepted September 01, 2015

Citation: Mohammadreza Abbasi, Narges Azimi, Mahdi Jalilvand, A Survey Programs and Policies of Iran Government in Agricultural Sector and Effects on Villags Economic in Kermanshah Province. American Journal of Rural Development, 3 (2). 52-59. January 2015. doi:10.12691/ajrd-3-2-5

1. Introduction

Kermanshah province has about 900 thousand hectare of sowing lands, 75% of which are the not irrigated lands in which the organization of agricultural production is highly risky. Despite the fact that Iran’s agriculture, which gives the 20 percent cost of the country’s nonindustrial output and services, and here is also produced 75-80% of necessary food, and against the previous year in 2012 year provide 11,9% of increase [3], over the last 30 years the investment made by the state is low than 6%. Government support and assistance given to the land users by the state does not reach even 1% (0,85) and it is the case when in industrialized countries it reaches 40%. For example in 2010 state allocations to urban regions was 80%, while in rural areas only 20%. Moreover, the difference between the income of the urban and rural communities, between the poor and the income of the urban and rural communities, between the poor and the rich layers reached up to 20 times [3].

Figure 1. Location of Kermanshah within Iran [19]

Although are 30 previous years always, rate of production of agriculture products has been even residual in production, mean while number of job opportunities in Iran’s villages always have been reduced and strategic agriculture products makes their coming from outside. In addition, antecedent migrations have caused cross-living in cities and made some problems, that is one of important disturbance of the country. Today, if each American farmer produces food to 64 people and each Sweden farmer for 28 persons, Iranian farmer in this condition even is not able to provide food of two persons of his compatriot [21]. With pay attention to quick growth of consumption of production from important products like wheat, meat and oil, some other important agriculture goods don’t respond to consumption and in most of the years we have to import the massive food materials.

Table 1. Index of Kermanshah province at the 2014 year [21]

Agriculture part, service and industry, all are productive and living fields of human and should altogether approve economic development of the country and as experience in countries of Asia, Europe and America also has shown, all of this axis should complement the other so that agriculture be successful [21]. The final point is that perhaps some authorities of running and rule – making of country believe that because our geography of our country is a dried or semi – dried region, centrality of agriculture development don’t respond at all. in this regard it should be said that the main problem in this regard results from not correct investment in building storage facilities and water transport, not non – balance in raining and water available, because problems of supply agriculture water in north towns of the country in spite of having annual raining 600 to 2000 millimeters (country average is 250 millimeter at year) in particular in spring and summer is a witness for this claim. so, if minimum volume of water sub missed for agriculture part of Iran be considered, by providing other fields like promotion of exploitation from sources, we are able to increase Iran agriculture from to three times of current square and create great production and occupancy in particular, in agriculture part and its industry dependent to it [17].

The modernity of the survey – In Iran, in the period of preceding the Islamic Revolution, the maximum profit from investments was falling in non-agricultural sector. Guided by the logic of just how low labor costs (time wage, work wage), and basically it is necessary pay for ensure a minimum standard of living in order to work out the maximum profit, all major economic sectors, including agriculture sector wage a long period of time is maintained at a low level. Such a policy was expected to fill the shortage of domestic production by imports. In this terms the certain regions, the owners and economic agents with the support and assistance of the state, loan funds received from the sale of oil due to the acquisition and use of machinery equipment, machinery, fertilizers and pesticides have the certain competitiveness and profit. after the revolution, as a result of policy revision of the economy raised a number of sphere of industries, including agriculture's role, and an attempt was made to expand support to agricultural production, particularly acquisition and the use of pesticides, fertilizers, agricultural techniques. the policy of the agricultural foods price increase, that aimed at increasing the production and reduction of migration from the village, in practice faced two barriers [18]:

1. were low the strive of the fully utilize of agricultural institutions towards the work of reducing costs,

2. despite almost unchanged wages, in the country millions of people are in hard financial conditions.

After the Islamic Revolution, using of the coupon policy economic pressure is somewhat weakened, but increased public (administrative) costs, opened the huge unearned income door for persons engaged in selling goods, and was created not suitable structure for distribution of national income.

Agriculture and state-owned institutions and their subsidiaries and divisions of the past 25-30 years applied policies and implemented programs that have had a positive or a negative impact on farmers, as both economic and political terms.

They have become the subject of evaluation and discussion of this work in the example of the Kermanshah province that is the most important centers of the country in terms of agriculture and population. The impact of the project on the province's rural economic and social life has been the subject of study and research of this work.

Naturally, given the fact that Kermanshah province, where for the majority of the population work in agriculture is the main source of income, and well-drawn plans and the implementation of agricultural policies from the view of the increase of agricultural production are vital need. In order to the formulation and implementation of the latter's’ the researches of the Kermanshah province and the investment of their results are actual and extremely modern, because every successfully created plan and policy can positively impact the lifestyle of the rural and improve the efficiency of agricultural production, as Kermanshah province, so the Iran's whole area. The use of the impacts can be grouped as follows: the executive authorities of the state and the province taking into account the results of this scientific research can be reviewed their agricultural and regional policies and programs to make them stronger and pay more special attention for improvement of the weak sides,

The researchers using the methods of research and analysis, results and the other sides of the study applied in this work may perform additional research and analysis, as well as use the results of the study during the solutions of other problems. They can help the rural community to do the right choice and adjust their claims submitted to the state and executive authorities.

2. Conditions and Opportunities of Iran

Having agriculture antecedent 4 thousand years and training domesticated animals antecedent more than 7 thousand years, social structure inclined to agriculture and beliefs for being valued agriculture activities, having active human force, the least need to outside for doing productive activity in this part, and climate variety that has provided possibility of production in a season in multiple regions of the country, can show us so one of the important basis of supplier food, garden and protein products in international level. on one hand, necessity of supply internal consuming market that should supply food of millions of Iranian people without international economic and political challenges and on the other hand being in a region that most of our countries in our highburhood not able to supply their winter needs in summer and rice versa, and Iran agriculture products in various seasons can stable consumers in markets of region in north and south. At present, agriculture part in Iran, in spite of multiple problems allocated to itself about 25 percents of occupancy, 90 percents of raw arterials of agriculture industries, 30 percents of non oil experts and 9 percents of agriculture needs of their industries. [8]

Table 2. Employment and unemployment situation in Kermanshah Province in 2000- 2013 years [21]

Table 3. Indices of agricultural in country and Kermanshah province in 2012 [4]

Agriculture part, service and industry, all are productive and living fields of human and should altogether approve economic development of the country and as experience in countries of Asia, Europe and America also has shown, all of this axis should complement the other so that agriculture be successful [21]. The final point is that perhaps some authorities of running and rule – making of country believe that because our geography of our country is a dried or semi – dried region, centrality of agriculture development don’t respond at all. in this regard it should be said that the main problem in this regard results from not correct investment in building storage facilities and water transport, not non – balance in raining and water available, because problems of supply agriculture water in north towns of the country in spite of having annual raining 600 to 2000 millimeters (country average is 250 millimeter at year) in particular in spring and summer is a witness for this claim. so, if minimum volume of water sub missed for agriculture part of Iran be considered, by providing other fields like promotion of exploitation from sources, we are able to increase Iran agriculture from to three times of current square and create great production and occupancy in particular, in agriculture part and its industry dependent to it [17].

Income Level of Villages

There are different factors that affect on income level of villages and during contiguous years have made difference of income levels among them. Although, some of these factors have relatively equalized effect on all of villages, but most of them, with pay attention to time and place, have variable effects. (Plan title; classification of country villages about facilities and income). These differences during last decades have made that some of villages reach to higher level of income. While some are in the lowest level. For this reason government in the last three decades have tried by budget distribution, bank credit and financial aid to more facilities to low-income areas, to decrease their distance increase, but to which villages, what amount of budget and other facilities being given to their distances reach to lowest level? for this reason, some indexes should be identified that be usable in optimal distribution of budget and selection of suitable places for doing case or research executive plans for this reason, the plan of country villages classification about facilities and in come with the aim of villages classification by using economic indexes for making more suitable condition for policy holding has been done and the following results have been optioned: [20]

Table 4. Villager's income situation in Kermanshah 1990-2013 [20]

In regard to income, 22 percent, of villages are in very poor group, 28 percent, in poor group, 26 percents in group with middle income and 24 percent in group with suitable income, and in regard to facilities also 42 percents of villages have roadway or asphalt, 51 percents of them have electricity and 44 percents have water piping, 27 percent of them have hygiene. [20] Also, 9 percent of villages with 15 percents population or 185 rural districts are in the best condition, because with 75 or 100 percents of facilities, have the highest income. In contrast, 22 percents of villages or 5.5 percents of population and 472 rural districts, without any facilities are in the lowest levels of income [21].

Major supportive policies of government in agriculture products market (position of income and cost the rural household in Iran (Kermanshah))

To study the changes in the level of household cost on rural household revenue and inflation rate in country of Iran from 2010 to 2011 (Figure 2) Observed that the average rural household income in 2011 year compared to the 2010 year has increased of 8.3% However, the average household revenue increased% 9.8 mean inflation rate of %15 that Concluded the rural income ratio of inflation rate and cost of was negative And villagers have been forced to use their savings to offset the costs that this is indicates a lack of government support from village. Therefore is necessary for help to increase of the rural incomes and create of incentives for the production of agricultural products used some support policies to reduce the amount of expenditure and increase the rural incomes, which will help to continued production and prevent the migration of rural people.

Figure 2. Comparison of annual growth of revenue and cost a rural household with inflation rate at 2012 (20)

Table 5. The average annual income of a rural household income according to various sources at 2012

3. Subject Background

There are many researches about investigating government programs in economic sectors such as agriculture and its analysis in most improved countries and according to these studies, future programming of economic and macro-policies of government have been formed. In our country Iran un fortunately, during reset decades, there hasn't been a comprehensive study in agriculture sector and most researches was a case an program an sector study and there isn’t a study consisting of total government policies and programs in agriculture sector and their effects upon villagers of one county and we can say that this research of its kind in Iran and in available form is unique. but these researches have been done in the other forms such as investigating government outcomes at 5 years improvement programs of country in macro form or calendars of budget and program organization regarding performance of executing system and fulfillment rate of budget and system projects and world record of executive system at the end of every year or researchers analysis of country on executed programs are some works activities done in this research phase such as investigation of Iran economy by Dr Ebrahem Razaghi [16] which investigated economic programs of government since the beginning of government formation in Iran and analyzed different sectors such as agriculture? Prediction of Iran economic growth and its comparison with fourth program targets of improvement was done by Esfandiar Jahangard [9] in year 2003, measurement and trend analysis of exploitation by separating the economic sectors of Iran by Alireza Amini. which analyzed and measured the indices of economic productivity in Iran from years(1991-2003) [4]. mill Stewart has recommended some tips about economic growth and has made outstanding superior the government’s role at growth and has presented factors as conditions of economic growth of less-developed government estimation [7]. Evaluate the performance of the agricultural sector development plan adaptation with visions of Jesus by Abbas Keshavarz and Esa kalantari in 2012 years and result that the rate of energy self-sufficiency of internal resources at the end of last year (2010) was 55% While in start the program (2005) was 75% of which 20% are negative [24]. the time series of capital asset in Iran economy during years (2002-2004) has been done by amine [4]. The Impacts of Globalization on Rural Communities of Kermanshah Township, Iran by Jafar Azizi,, Seyed Rahim Taimoori [14] This research examined eight factors of agro- industrialization, increasing in poverty and inequality, change in employment patterns, economic restructuring, role of nation-state, role of media, cultural universalism, cultural particularize and their impacts on rural communities progress. The results showed that there was a significant correlation between independent and dependent variables (p<0.01). On the base of regression analysis independent variables can be predicted 62 percent of changes in dependent variable. Structural Equation Modeling (SEM) certificated regression analysis results. Path analysis results showed that the model fitted the data with acceptable fit indices: chi square=5.341, p=0.376, RMSEA=0.013, CFI=1.000, NFI=0.992 and investigation the financial policies effect of government upon economic growth by masood nily in year(1998) [13] and also, Olson in a work called an excellent lecture about government economy in (year1996)-has addressed the role of government programs and policies in economic [7], employing a pattern for allocation the clearing poverty credits in mashed province ( county) by mahdi manzari hesar [11] made has determined the needed budget regarding importance determination and measurement the distribution indices of construction credits.

The dissertation theoretical, informational and methodological grounds

During the research, as theory, both queries and at the discussion primarily applied the documentary method using the actual data and materials of the Statistical Center of Iran and the Ministry of Agriculture of Jihad, Programming and Budget institutions and other organizations related to the agriculture sphere, internal and external information sources, as well as the results of polls in the villages of the Kermanshah province, which are treats the programs and state policy's outcome.

The statistical sources of this research are differentiated into 2 groups:

structures and concepts related to the agriculture, such as Agriculture-Jihad, agricultural cooperation, natural sources, Affairs of Ashier, Agricultural Bank, rural electrification, roads and transport, water issues, trade, water economy, Governorship, Handicrafts, programming and budgeting providing issues and other facilities and units, which are responsible for or associated with the issues or formulating plans related to the agriculture and Experts and professionals this organization.

Rural areas of the Kermanshah province, where these programs are implemented, examined and discussed that and made reference and identify implemented programs and policy impact on rural economies.

One of the research methods is to collect information. In addition to the documentary using the observation and published data usage and the information as the resulting of press conference (discuss).

Tool of data collection:

In this research in addition to document method, we use interview method and recording square data and use of swot analyze and variance and spss program for analyzes

The effect of the program on rural income (in view of the villagers)

Pay attention the number of villages in the province of Kermanshah (2662) and order the results of the statistical population (province), we are need to extend the sample size n> 30. there for chosen the 32 villages inform randomly from all provinces and In this village selected of 324 person rural randomly for interview, To determine the parameters according to the outline of government policies and program in the third and fourth and fifth development plan and Advice from experts was considered twelve indicators for measuring the effectiveness of government programs and policies on rural income and economic status and livelihood of the villagers to be as follows:

1. education and promoting and research programs 2. government supporting policies (subsidies). 3. market regulation policies 4. guaranteed purchase of products on rural income. 5. trade policy (exports and imports) on rural income. 6. provided of input and banking facilities. 7. agricultural mechanization development on rural income. 8. water resources development and irrigation systems on rural income. 9. formation the cooperatives and trade unions on rural income. 10. government investment (infrastructure development) on rural income. 11. risk reduction policies and programs on rural income. 12. development of industries and non-agricultural occupations by the government.

In this research was designed the survey questionnaire in the form of Likert scale that of No 1 is marks the impact failure of the government's program on the economic status of villager and increase income their and is the No. 5 signs of success in influencing of government programs on rural income and improve the economic status of villager and is the No. 2 signal ineffective government programs. Meanwhile, some interview questions are as open and are about the causes of success or failure of programs and are rural views, which will be addressed in further studies:

General information on the data extracted from the interviewees were familiar with their general conditions.

1. Literacy: 45% of respondents are illiterate and only 30% have literacy and 23% have diploma and higher.

2. Age of respondents: 30 percent are under 40 years, the mean age of the respondents over 45 years and is a sign of aging, rural farmers. Table 6

3. Of agricultural land, about 15 percent have no land and 50% have less than 5 hectares of agricultural land and are small portion of beneficiaries of agricultural great land.

4. Gender: about 94% of beneficiaries are Male and only about 6% to farmers accountable is women.

Table 6. Statistics

Table 7. Frequency and Valid Percent

Table 8. ANOVAb

Table 9. Coefficientsa

Table 10. The results of calculations to assess of supportive policies and program the government on village income in the period 2002-2014

The statistical analysis and results of the obtained:

According to the results of the analysis of rural comments in Kermanshah Province (Table 10 Analysis Issue) of Government policies and programs that were implemented in the rural areas The first index, that have more effective of the villagers and believe the increase in revenue was educational and promoting and research programs (Table 10) 3.08 It may be said that the number has a positive role in improving the economic conditions and increasing the income and have been successful this programs. The second program, the views of respondents with 3.04 has programs and policies in water supply and implement the new irrigation system and was third with 3.01 program the agricultural mechanization improvement and we see in plan remaining on the table as the government plans to increase the income of farmers in this province.

4. Conclusion and Suggestions

In this part we meanwhile concluding of done from research about policies and programs of agriculture part in Kermanshah, offer a series of suggestions about improvement of planning position and policy making of the country and the town. Condition and facilities of Iran. making capacity in lawful, legal, financial, credit, physical and laying aspects for fostering in economic and social growth and development of villages with emphases on agriculture part.

a. Making variability to economic activities of villages by emphasis on agriculture part.

b. Growth and development of village economy by optimal exploitation from existing and potential sources (exploitation promotion) and making new job opportunities and promotion of villager’s income.

c. Economic – social development of villagers by emphasis on development of social structures, local laying and public participation in decision – making process and development of local affairs.

d. Development of needed foundation of agriculture part in villages.

e. Improvement of management position rural development in national, regional and local levels.

f. Development of rural financial local service network with the aim of making job, promotion of exploitation and comparison ability, in particular in agriculture part, include reinforcement of rural development of occupancy money loaned without interest box and help to establishment and reinforcement of boxes up porting from rural stable development.

g. Making needed bed for coordination of running apparatus for running rural and agriculture development programs.

h. It is necessary that government supportive policies (paid financial – aids) be revised and orient toward support from agriculture producer and increase of exploitation in agriculture.

i. Contribution of productive financial-aid of agriculture-aid increase from impure internal production.

j. Supports in agriculture research part (with pay attention to nativity of part research growth) and foundation tasks and agriculture market are increased.

k. Supportive policies gain more variability and flexibility (based on activity and condition).

1. Unfortunately not very successful processing the industries Due to the high amount of waste in agricultural products and the industry is very low in the provinces.

2. Farmers haven't enough income and are low output efficiency and there are not incentives for investment in agriculture Due to the small dimensions of approximately 50% of agricultural land under five hectares.

3. Unfortunately agricultural land in Kermanshah is the small dimensions that can be of suitable solutions the of cooperatives and joint stock companies that incorporate the small area in mechanized farming, that now is very low the number of firms in the province.

4. unfortunately According to the latest statistics, the government allocated is subsidy to agriculture and the rural population less than 10% but more than 90% subsidy is allocated to cities.

5. Unfortunately, the efficiency of agricultural productivity in Kermanshah is 17.8%, which is much lower than to other regions of country which is 28% that the reason is: the small size of land, dry land, and non-use of appropriate technologies and the low level of education of the farmers.

6. Education is not enough in government centers And given the number of beneficiaries (140,000) and 2600 villages, and the great number of illiterate farmers, is not considered the provide training and educational programs and programming methods and are not suitable credits for education in the state.

7. Provide banking facilities to the farmers have defects and problems which resulted are not very good investment in this sector.

8. The low is purchase price of agricultural products and risk taking that caused farmers do not have the motivation to invest in this sector And most of them have migrated or changed jobs.

9. Has been low technology transfer from research centers to farmers and is not applied to farmers of research project conducted by researchers.

10. According to statistics the rural income grow average in annual is 8.3% that is much lower than of the work and life cost grow average in annual which is 9.8%, and also is much lower than the annual inflation rate and This shows that government's economic program cannot highest income of farmers in the province and have not able enhance and has impacted of negatively in the agricultural economy.

Suggestions

A. Applying the scientific mechanisms the Relationship of learning and promotion research is linked with the implementation and farmers and scientific research conducted by the researchers based on the assessment of farmers and enhances the technical knowledge to farmers through training and dissemination of new scientific findings in world and practical of university education through cooperation with the executive.

B. Allocate more funds and projects planning and land consolidation and mechanization of farming in order to form cooperatives and joint stock companies In order to reduce costs, increase efficiency in agriculture sector and promote inclusion low-income farmers, especially small-scale farmers.

C. Applying the tools and policies to risk reduce in agriculture such as reducing price volatility, more coverage the guaranteed purchase of agricultural products, a variety of agricultural crops, increasing their reserves, reinsurance.

D. Support Policies increasing of government for farmers through price policies, trade (export and import laws and taxes and customs duties) increased the subsidies for agricultural inputs and revise of agricultural support laws through parliament and government approvals.

E. Market reform and marketing services for agricultural products such as proper storage, transportation of easier and cheaper, develop the complementary industries, packaging of favorable for agricultural exports and appropriate of credit and bank loan with low interest to farmers and producers.

References

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