Economic prioritization of investment in the agricultural sector of Fars province

Dissertation for receiving a master's degree (M.sc.)

Tension: Agricultural Economics

Economic prioritization of investment in the agricultural sector of Fars province

Abstract

The purpose of this article Investigating and determining the economic prioritization of investment in the agricultural sector of Fars province. Despite the many variables, in this research, 8 options of pressure irrigation, electrification of wells, construction of gardens, forests and pastures, poultry farming, water management, conversion industries, fisheries and aquaculture, and greenhouses with four criteria of investment return period, capital return rate, job creation and production capacity increase have been used to select the best option among the 8 options using multi-criteria decision models and hierarchical AHP method.

In this research, the most priority options were allocated to watershed management based on the investment return period and capital return rate, and based on job creation to conversion industries, and based on the increase in production capacity to poultry farming. Finally, conversion industries with a weight of 166/. were recognized as the best option for investment in the agricultural sector of Fars province.

Key words: prioritization, investment, AHP, agriculture, criteria, options

Introduction

Agricultural product producers act in various ways to provide the capital and credit they need in product production. Using personal savings, receiving loans and facilities from credit sources (such as banks, institutions and credit funds) are among the most suitable ways to solve the problem of lack of capital by farmers. In the discussion of agricultural development, one of the solutions to solve the financial problem of farmers is financing as the basis of production, which plays an important role in focusing and directing the small funds of villagers and creating a spirit of participation and teamwork (Skip, 1994). The use of capital, as a method of direct intervention in development, has been the focus of most development schools of thought. This method, by expanding new markets and promoting management culture, provides a suitable basis for efficient governance of the government in agricultural development (Roth, 1997). 75% should be given special attention in the investment priority sector (Ministry of Jihad Agriculture, 1386).

In the world undergoing liberalization and globalization, economic growth and development can continue if countries are able to expand higher and newer value-added activities and produce goods and services that maintain their position and position in competitive markets. To achieve this goal, investment is an effective and necessary tool.

Economic growth and development in all human societies, whether developed or developing, requires investment to increase the quantity and quality of production of goods and services. Investment creates new job opportunities and improves public welfare in various ways.      

There is no pure and definitive policy for the prosperity of the agricultural sector, but in order to choose effective strategies, it is always necessary to review the investment and move it towards an optimal policy. Therefore, it is necessary to carry out targeted studies and researches so that new and effective solutions can be presented to the capital owners and activists of the agricultural sector from their results.

Usually investment It is attractive in areas where production investment obstacles are minimal and the investor receives a suitable response to his investment expectations, and on the other hand, infrastructure facilities, including physical and social factors, are available. Producers of agricultural products act in various ways to provide the capital and credit they need in product production.The use of personal savings, receiving loans and facilities from credit sources (such as banks, institutions and credit funds) are among the most suitable ways to solve the problem of lack of capital by farmers (Najafi and Dehghanian, 2013).

It is obvious that if agricultural activity is created in accordance with these two factors, it will grow appropriately and maintain its dynamic trend.

Fars province benefits from two external and internal factors. So that it is considered one of the relatively suitable, fertile and well-equipped areas of the country both in terms of geographical location and in terms of production bases.

Fars province, relying on its production capacity and suitable geographical location, the presence of young and creative workforce and active entrepreneurs, can provide one of the investment priorities, which is access to the large agricultural market in the country, and play a role in attracting investors.            

Given that many variables are involved in the investment ranking of the province, in this research, it has been tried to express these variables in the majority of general titles. Also, according to the theoretical examination of the subject both in the field of investment and in the field of investment, a question has been used as the main research question and a hypothesis has been used to define the question.        

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1-2- 1-  Definition of investment

Investment [1] means putting money into an economic operation with the expectation of profit from it. More precisely, investment is the commitment of money or capital to purchase property, equipment or other assets, in order to benefit from beneficial returns in the form of interest, dividends or appreciation of the value of the equipment (capital gains), which is dependent on saving or reducing consumption. Investment is discussed in many economic areas such as business management or property and finance, whether by families, companies or governments. An investment includes a choice by a person or an organization, such as a pension capital pension, after analyzing and analyzing or thinking to put or lend money in a cycle. Investing with less risk occurs in the general public. An investment that is not fully analyzed can be more risky than an owner's investment because the possibility of loss is beyond the owner's control. The difference between speculating and investing can be subtle. And it depends on the investment that the owner thinks about whether the purpose is to lend resources to another person for an economic purpose or not. In the case of investment, the investor can produce a durable good for the consumer or producer instead of storing the produced good or its monetary equivalent, or invest by lending the original stored good to another in exchange for interest or a share of the profit. In the first case, a person produces durable consumer goods in the hope that the goods and services will make his life better. In the second case, a person comes to a merchant in order to use resources to produce goods and services for others in the hope of a profitable sale.