Economic Analysis of the Impact of Production Policies on Wheat and Maize Crops in Egypt

The research aims to identify price imbalances between local and global prices and measure the impact of imbalances on the producer and consumer, by analyzing and evaluating the Egyptian price policy for wheat and corn as the most important grain crops in Egypt using the policy analysis matrix during the two study periods (2018-2020) and (2021-2023) It was found that the financial evaluation of the return was less than the economic evaluation of the wheat crop during the two study periods and the first period of the corn crop, meaning that there were taxes imposed by the state during that period, while the financial return was higher than the economic return of the corn crop in the second period, meaning that local prices were higher than global prices, meaning that the state followed a policy of encouraging farmers to grow corn, meaning there was support. From the calculation of the nominal protection factor for production requirements for the wheat crop, it was found that the state supports production requirements by about 1% for the first period and about 16% in the second period. This is due to the changes that occurred as a result of the Russian-Ukrainian war to encourage farmers to grow the crop to reduce the quantity imported from abroad, as well as for the corn crop, where the percentage of support for production requirements increased from 3% to 12% for the first and second periods, respectively. The study of the nominal protection factor for the per acre yield and the effective protection factor for the wheat crop during the two study periods showed an increase in the percentage of taxes imposed on the producer from 4% to 24% respectively and the continuation of state support for the consumer, while it showed that taxes were imposed on the corn crop at about 9% in the first period, while it turned into support for producers reaching 13% and taxes on the consumer to rationalize their consumption of the crop.