The impact of agricultural policies on producing of the main food crops in Egypt

The study aims at showing the impacts of the economic liberalization policies on the prices of the main food crops in Egypt which are rice, bean, potatoes and tomatoes, through analyzing the different relations of the liberalization period and the period before liberalization, in order to know the effect of changes in global prices on the local prices of these crops, also to know the impact of canceling the subsidy for the agricultural production requirements. By using the Dummy variable, the direct impact of integrated and partial liberalization policies had been indicated on the production, productivity and the area of rice, bean, potatoes and tomatoes crops. Studying the relation between the farm price for the unit and the productive unit cost, indicated that the price policy encourages the farmers to increase producing rice, bean, potatoes and tomatoes during the period before implementing the economic liberalization. It indicated also that the average of increase in cost was more than the average of increase in prices during the period of integrated and partial liberalization for implementing the policies. By estimating the relation between the cultivated area and the net profit of the last year, the direct impact of the net profit of the last year had been indicated on rice bean and potatoes areas during the partial liberalization period. The results of nominal protection coefficient indicated that rice, bean , potatoes and tomatoes producers receive a subsidy from the value of their production as a result of the positive protection which covers the producers of these crops, during the complete liberalization period in exchange for imposing an indirect taxes during the partial liberalization period. These taxes were greater during the period before implementing the policies. While the nominal protection coefficient for cotton crop indicated that the indirect taxes increase during the period of complete lib e ralization more than the period before. It is clear that the effective protection coefficient value passed integer one during the period of complete liberalization for wheat, corn and rice crops, this reflects that the producers of these crops are covered with a positive protection policy represented in receiving a subsidy in exchange for imposing an indirect taxes on these producers during the period of partial liberalization, and these taxes increase during the period before implementing the policies.