Abstract

NIYAZ, Allahyar Muradov  and  ALLAHVERDI, Lala Jabbarli. Measuring the level of state intervention (support) in agricultural production. Universidad y Sociedad [online]. 2023, vol.15, n.2, pp. 18-26.  Epub Apr 30, 2023. ISSN 2218-3620.

As in other areas of the economy the state uses various regulatory instruments to support agriculture, however, unlike other areas, more attention is paid to agriculture, taking into account the risk and its importance in terms of food security in the country. Regulatory methods to stimulate production in agriculture include research and development (R&D), farm staff training, infrastructure support, tax incentives, low-interest loans, subsidies, etc. However, the level of state intervention in agriculture is not such a developed topic, so measuring this aspect is the main objective of this work. Thus, the article presents a methodology to measure the level of direct and indirect state intervention (or support) in agricultural production, mainly analyzing OECD countries. Based on the methodology, the State Intervention in Agriculture Index (ISIA) is calculated in 29 countries, and based on the level of state intervention, states are ranked from least (liberal) to most (structural). According to the result obtained, the dependence between the dynamics of agricultural development in the countries was evaluated, arriving that in terms of the risk of agriculture and the provision of food security in the country, a "soft" but effective state intervention is necessary. promoting incentives and subsidies for the development of the agricultural sector.

Keywords : State intervention; Agricultural sector; Tax regulation.

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