The Impact of Financial Support and Government Subsidies on Enhancing Agricultural Productivity

This study aims to analyze the impact of both financial support and government subsidies on agricultural productivity in Iraq during the period (2000–2024), using time-series data obtained from the Ministry of Planning and the Central Statistical Organization. The results reveal a positive and direct relationship between government support to the agricultural sector and agricultural productivity. Government support increased from 450 billion Iraqi dinars in 2000 to 1,600 billion Iraqi dinars in 2024, accompanied by a rise in agricultural production from 7 million tons to 16 million tons, and an increase in the agricultural productivity index to 215%. The findings also indicate that government agricultural expenditure and support for production inputs had the strongest impact on enhancing agricultural productivity, with increases of 27% and 23%, respectively, compared to direct cash subsidies, which showed a relatively lower effect. The study further demonstrates that the effectiveness of government support is highly dependent on the degree of proper targeting and management efficiency, as weak planning and fragmented support programs reduce its positive impact. The study concludes that redesigning agricultural support policies by linking subsidies to effective production levels and improving resource-use efficiency is essential for achieving sustainable agricultural development and food security in Iraq.