An assessment of the economic impact of the Jordanian agricultural cropping pattern program
1989
Bessler, D.A. | McCarl, B.A.
Motivation and mechanics of the cropping pattern program were discussed. Statistical analysis of vegetable production were provided, prices and exports before and after implementation of the cropping pattern policy. Optimal land allocation was studied, using a linear programming model, which explicitly considered production constraints. Results indicated that profit to Jordanian farmers has been reduced by JD 35 million per year due to the cropping pattern program. Had they been allowed to plant according to rational economic dictates, the model showed that their profits could have been 75% more than they actually were in the cropping pattern program years. Further, if the program was removed, tomato production would have increased rather dramatically. This would, according to the model, also result in a reduction in the area planted to squash, eggplant and the uncontrolled crops, with cucumber area remaining about the same. The study suggested that the cropping pattern program has cost the Jordanian economy quite heavily in terms of foregone profits. The additional costs of designing the program and monitoring its application were probably trivial compared to the direct economic losses due to reduced production. Summary of findings and a discussion of alternatives which the Jordanian Government might implement either in lieu of, or in addition to, the current cropping pattern policy concluded the study
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