POLICY IMPACT OF ECONOMIC LIBERALIZATION ON PROFITABILITY OF SOME AGRICULTURAL ROTATIONS IN PRINCIPAL PRODUCTION AREA IN ARAB REPUBLIC OF EGYPT

Many Procedures Have been taken in the agricultural Sector to match
applying the policy of economic liberalization, of which abolishment of Compulsory
crop pattern and substituted by primary pattern crop. Therefore, this research cared
about answer of important question on what is the impact of adoption of the policy of
economic liberalization on the profitability of agricultural relation on the level of
principal production areas in the republic (lower Egypt ,Middle Egypt, Upper Egypt) .
The research aims at measuring and analysing the impact of change in the
profitability components of the agricultural rotations prevailed in those areas. To
achieve this target, the study period has been divided to two period: The first from
1984 to 1986 as it represents the base period l.e., the period of pre-applying the policy
of economic liberalization. The second from 2001 to 2003 represents comparison
penod i.e, period of economic liberalization. The resear ~i1 depended on using the
J. Agric. Sci. Mansoura Univ., 30 (7), Ju,'y, 2005
method of measure figures as an importsn] analytic mean and many results have
been obtained as the following:
        .:'    Applying the pot icy of economic liberalization has led to increasing the net Income
of the four agricultural rotations -(Research subject) which are provided in the
principal production areas: wheat + corn, broad beans + corn, temporary clover
+ cotton. permanent clover +corn . This increase ranged between minimum limit
represents the period p < /em>re- liberalization by 475.4% in the rotation of (temporary
clover + cotton ) in upper Egypt and maximum limit 924.8% in the rotation of
(permanent clover -corn) in Upper Egypt too, this ensure the correct direction
towards economic liberalization in the Egyptian agriculture .
• :. As a result of adopting this policy middle Egypt occupied the first rank in
achieving relative increase in the profitability of the two rotations: wheat + corn,
temporary clover + cotton, meanwhile lower Egypt occupied the last rank in the
first rotation and Upper Egypt occupied the last rank in the second rotation .

·!. Upper Egypt occupied the first rank in achieving relative increase in the net
income of the profitability of the two rotations: broad beans •. corn, permanent clover
-corn , meanwhile lower Egypt occupied the last position in the two mentioned
rotation.

It was clear that the increase of profitability of the mentioned agricultural rotations is
due to the from prices of the all mentioned crops and the increase of total production
except cotton and temporary clover. It was also clear that the negative impacts of
applying economic libecatizanon policy represented in increasrnq productive costs for
varions crops.
The study recommends the following topIcs ;-

It is necessary to rethink distribution of the varions agricultural rotations among
the principal production areas to ensure the optimum utilization of the agricultural
resources and profit maximization.
It is. necessary to reduce the negative impacts of economic liberalization policy
represented in productive costs increase as a result of abolishing subsidies on
agricultural production requisites by re-activating the agricultural cooperatives to
provide these requisites with suitable prices.
It is. necessary to reach to technical methods in production to reduce productive
costs and maximization of productivity .