The Impact of Price Floating of Agricultural Crops on the Amounts of Vegetables and Loans’ Service in Southern Shounah (Field Study)

Wasfi Al-Odwan, Buthaina Al-Muhtaseb

Abstract


This study deals with the effect of price floating of agricultural products, which has been applied in Jordan since 1997 on both the size of agricultural production of a selected group of vegetables (tomatoes, eggplant, marrow and cucumber) and on agricultural debt service in Southern Shounah area in Jordan.

This study is of further significance in terms of time and place; as this is the first time where floating impact on a vital agricultural area is discussed. Further, it covers a longer period of time (1990-2004), also it included a new dimension, not discussed before, which is the impact on agricultural debt service. Furthermore, the methodology was not restricted to the descriptive analysis approach based on formal data, but extended to the field research approach, as questionnaires were prepared for this purpose and distributed among all producers and indebted farmers of the mentioned vegetables.

The study indicated that the results of analyzing official data were consistent, in general, with the opinions of the population study members. A positive effect was found for price floating in terms of the increase in the eggplant, cucumber and marrow production, while the surplus (tomato) production was decreased as has been planned. The impact was also positive when it came to loans; as the farmers' abilities to repay their loans were greater after floating. And thus, the study recommends to pursue applying the policy of price floating.


Keywords


Price Floating of Vegetables, Agricultural Loan Service, Southern Shounah Area in Jordan.

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