The impact of support price policies on cereal production in Iraq

Abstract

Iraq is classified as a deficit country in food and feed production. Domestic production of food and feed grains is far below the total demand for these crops. As a result, there has been a widening food and feed gap due to a decrease in local production and population growth, as well as growth in per capita income. The main source of the decrease in local production is low yields. For example, yield levels for wheat and barley mostly ranged between 400-800 kg/ha during the period 1967¬1990. Unlike the period before 1987 when most agricultural activities were under government control and operation, the present policy is to vitalize the private sector and encourage investment in agriculture. Though privatization of the agricultural sector has been initiated, the public sector is still handling services such as research, plant and animal protection, financing, provision of some inputs, land reform, and natural resource management practices like land reclamation, drainage, and irrigation. Pricing policies are also administered by the government and used as a tool to enhance domestic food production. Support prices have been high for the major crops: wheat, barley, paddy, corn, cotton, and sunflower. Meanwhile, agricultural inputs, such as fertilizers, seeds, chemicals, machinery, and spare parts are subsidized and distributed by government agencies.