Agricultural Producer Support and Production Relation: Panel Data Evidence from Selected Countries on Agricultural Wheat Crop

The study’s main purpose is to analyze the effect of wheat producer support on wheat production using panel data methods. The primary independent variable of interest is wheat producer support, and the secondary variables of interest are wheat harvested area, previous period price of wheat, and previous period production of wheat. Panel data include 352 observations from selected 16 countries between 2000 and 2022. All the data are annual and retrieved from the OECD official website. The main finding of this study is that wheat producer support has a positive effect on wheat production. This finding reveals that agricultural support increases agricultural production for wheat crops. The findings indicate that countries should give importance to producer support policies in agriculture and develop new support policies. The secondary findings of this study show that wheat harvested area, previous period price of wheat, and previous period production of wheat have a positive effect on wheat production. The study has significant consequences for the Mediterranean countries, which have a considerable share in world wheat imports during and after the analysis period.