**Perspectives of the Moldavian Agricultural Sector by Using a Custom-Developed Analytical Framework**

**S, tefan-Mihai PETREA 1,\*, Dragos Sebastian Cristea 2, Maria Magdalena Turek Rahoveanu 3,\*, Cristina Gabriela Zamfir 2, Adrian Turek Rahoveanu 4, Gheorghe Adrian Zugravu <sup>5</sup> and Dumitru Nancu <sup>6</sup>**


Received: 13 February 2020; Accepted: 4 June 2020; Published: 8 June 2020

**Abstract:** Moldova possesses the largest area of farmland as a share of its total land surface, an advantage which should encourage economic development strategies oriented towards the agriculture sector. Government subsidies and agriculture loans have been used as tools for developing the Moldavian agriculture. However, considering the challenges generated by both climate change (the drought from year 2012 that affected 80% of farmland) and a difficult political situation (restrictions imposed by the Russian Federation on the Republic of Moldova's agri-food imports and exports between 2013 and 2014), the country's agricultural system ranks very low when it comes to agricultural production efficiency. The present paper analyses the performances of the agricultural sector and its impact on the Moldavian economy over a nine-year period (between 2008 and 2016), by using a custom-developed analytical framework based on a dataset containing 21 relevant indicators. The analytical framework generates various perspectives that can be used to elaborate an economic sustainable development strategy of the Moldavian agriculture sector. The development of the analytical framework is based on the dynamics of agriculture subsidies, agricultural loans, the agricultural sector's gross domestic product (GDP) and gross value added (GVA), as well as the dynamics of agricultural production and production value, also considering the main crops belonging to the Moldavian agriculture sector. The results are presented as sets of mathematical regression models that quantify the relationships found between the relevant agricultural parameters and their impact on the economics of the agricultural sector. It has been identified that the agriculture sector has a considerable impact on the Moldavian economy, a fact revealed by the significant model between the agriculture GVA and total GVA and GDP. A significant, negative correlation model was identified between agriculture subsidies and agriculture loans, although a small percentage of Moldavian agriculture farms were subsidized. Strong correlation models were also identified between wheat and maize production and total agriculture production, emphasizing the importance of these two crops for the Moldavian agricultural economy. Grape and maize production values also generated a correlation model, emphasizing the market interconnection between these crops It can be concluded that the increase in value of governmental agriculture subsidies, as well as expanding their addressability in order to maximize the access possibility for a higher number of agriculture farms, are essential for the Moldavian agriculture sector's future development, since considering

the limiting value of and accessibility to subsidies, a direct correlation model was identified between governmental agriculture subsidies and agriculture GVA.

**Keywords:** GDP; GVA; subsidies; agriculture; analytical framework; Moldavian economy

#### **1. Introduction**

The agricultural sector is considered key in the national economy of the Republic of Moldova. Moldavian agricultural development is heavily influenced by a favorable mild climate with very-high-quality soils that allow the production of high-value crops like fruits and vegetables. Still, even in a very-high-quality soil context, Shik et al. [1] mention in their studies that large-scale agricultural companies, which are also the core of the export activities, produce mostly low-value-added crops (such as sugar beet, oilseeds and cereals) on farms that exceed 50 ha of land. The same authors also notice that the agricultural sector of the Moldavian Republic was characterized by significant changes over the last years, especially related to its modernization and development.

The dynamic character of this sector has manifested during the past decade and can be attributable to a large variety of factors, such as disruption of production, distribution networks enhancement, climate change (there is no other economic sector as exposed to natural hazards), economical strategies and globalization or investments dynamics. Subsidy development programs and the volume of investments are important indicators that characterize the state policy in the agriculture sector. For example, Valeriu et al. [2] highlights that in Moldova, during the period between 2006 and 2015, the volume of investments and subsidies in agriculture displayed pronounced annual growths and decreases, while evolving non-uniformly. In this context, agriculture subsidies can be considered measures for avoiding large annual fluctuations, being focused both on agricultural products with a high export potential and on those that are not covered completely by national production. Compared to the rest of the European countries, Moldova has a high agricultural potential. Indeed, having among the largest areas of farmland as a share of the total land (75.00% compared to the European average of 45%), it is still placed at the end when it comes to agricultural production efficiency [3].

Thus, the aim of this article is to analyze the Republic of Moldova's national agricultural sector during a nine year period, by developing an analytical framework based on several technological tools and a set of models containing agricultural indicators proved to be relevant (state subsidies, agricultural loans, gross domestic product—GDP, agriculture GDP, gross value added—GVA, agriculture GVA, main agriculture crops production and value of production) for identifying patterns and solutions that would lead to maximizing agricultural efficiency.

According to the IBM researcher Lieberman [4], an analytical framework is composed of several major components: a set of tools; a set of useful solution patterns; one or more model forms; and multiple research techniques. The present study followed this approach as it provides, by using several technological tools, a set of models describing the existing relations between the aforementioned parameters and several discovered patterns. The data we used in our research spans over 9 years; that is, between 2008 and 2016. Currently, there is a limited number of studies that would provide insights referring to the dynamics of the Moldavian agricultural sector over the past years.

In order to have a better understanding of the productivity aspect of the Moldavian agricultural systems, our analytical framework is also using a set of parameters related to agricultural gross value added. Gross value added (GVA) is strongly related to productivity as it measures the contribution to the economy of an individual producer, industry or sector.

In a study based on machine learning cluster analysis [5], different types of farms and their development level were delimitated based on certain economic aspects like GVA; thus, presenting an interesting aspect of the Moldavian agricultural sector—the existence of many small family farms and only a small number of corporate holdings that are accounting for most of the agricultural production. Small individual farms predominantly produce solely for one or several family needs, unable to find their way to the market place, thus enforcing the rural economy.

Mainly, we consider that the low productivity of the agricultural sector is determined by the lack of investments, capital and available loan schemes, a context that led to the proliferation of low-efficiency technologies and the reduced use of fertilizers and pesticides—a situation confirmed by Shik et al. [1]. This situation clearly affects the welfare of the rural population of Moldova, population that is depending significantly on the agricultural sector.

As for the economic relations with the EU, the Republic of Moldova is the only country in the Commonwealth of Independent States that has preferential access to the EU market; thus, all the premises for the creation of free trade areas throughout the country were ensured. We consider that these free import zones could serve as liaison centers for capturing the foreign direct investments necessary to support the efforts of industrialization and subsequent development of exports, and the free zones for export offer a series of advantages for relocating certain industries originating from other countries in the host country.

In the Republic of Moldova, the agricultural sector supplies a large quantity of products for export, made up largely of raw unprocessed material at very low prices, while the import of agri-food products is comprised mainly of processed products. The size of the processing sector (excluding wine) is relatively small, at 4.50% of the total food and beverage industry in 2013 [6]. This situation is related to the lack of competitiveness that characterizes the Moldavian industry. Especially, this is the case with the food processing industry, due to low processing infrastructure (mostly limited to wine, apples and tomatoes). This manifested after 1989, when proper conditions for trade liberalization and import barriers reduction appeared.

The present research refers to the period between 2008 and 2016 and is based on data collected from agricultural farms, provided by the Moldavian National Bureau of Statistics and the Agency for Interventions and Payments in Agriculture, respectively. The period of nine years, between 2008 and 2016, was chosen since challenges generated by both climate change (the 2012 drought that affected 80.00% of farmland) and a difficult political situation (restrictions imposed by the Russian Federation on Republic of Moldova agri-food imports and exports between 2013 and 2014) were recorded. Therefore, by analyzing this period, a high-fidelity representation can be obtained, in order to assure a proper development strategy of the Moldavian agriculture sector, capable to face different environmental or political challenges scenarios.

For modelling purposes, the present study framework took into consideration the production values of the Moldavian main crops (wheat, maize and grapes), as they can be categorized from the information presented in Tables 1 and 2. By also calculating the productivity of the abovementioned crops, using the data presented in both tables, it can be concluded that both maize and wheat have similar average productivities (3.27 tons per hectare and 3.25 tons per hectare, respectively) during the four mentioned years (2015–2018).

However, according to recent studies [7], the grape and vegetable culture sectors are characterized by a large number of producers across the country that have important social impacts in addition to their strong economic impact, as they represent around 25% of the total agri-food exports. Vegetables were considered important crops as most of the production is obtained from greenhouses that require technological improvement and could benefit from subsidies and agricultural loans. The understanding of seasonality vis-à-vis competitors from other countries and their ability to spread marketing over time by using and improving greenhouses for vegetables could be a solution for increasing the performances of the agricultural sector [7].


**Table 1.** Sown area main crops (hectares) [8].

**Table 2.** Gross harvest main crops (thousand tons) [8].


Moldova is a world-class producer of grapes, maize and wheat as a result of the European Neighborhood Program for Agriculture and Rural Development (ENPARD) partnership with the EU since 2013. This ranking has not changed since 2013, with two main producers being recognized, Moldova and Ukraine [6]. In 2017, Moldova was ranked first in terms of grape export in the ENPARD program, accounting more than 80% of ENPARD production [6]. In terms of grape production, in

Europe, Moldova ranks 11th and 20th in the world. Besides that, the Republic of Moldova is the country with the highest density of vineyards in the world.

Due to the continuous development of the Moldavian agricultural sector, funding needs are continuously growing. Farmers and companies alike want to buy new equipment, materials, fertilizers, quality seeds and new breeds, or want to expand their farm sizes. That is why the present paper's analytical framework considered several parameters that would potentially address this aspect, specifically subventions and loans. Regarding the subsidies allocated to agricultural farms, usually they were offered on the basis of the following two directions: 1) for the modernization of the agricultural sector, by subsidizing investment activities related to the creation of units for the handling and processing of agricultural production, the provision of the appropriate equipment, the supply of materials for agricultural crops, the establishment of vineyards and orchards and the development of agricultural services; and 2) to increase the competitiveness of the plant and livestock sector, by stabilizing the market and ensuring food security and income for farmers by allocating direct payments according to culture, animal species and average farm yield—depending on the area of agricultural land or the number of animals.

The financial support granted to the agricultural producers came through different sectorial programs, the state budget or external sources (Rural Investment and Services project; The Agricultural Revitalization Project IFAD-II; improving market access for grape producers in the South Center area—HEKS; technical assistance for young farmers regarding marketing and entrepreneurship—IFAD; etc.). However, the subsidy fund can be considered an instrument for unifying all programs and projects for agricultural producers.

Lastly, it should be emphasized that the agricultural economic situation is strongly related to agricultural sustainability as, according to the OECD, the definition of sustainable agriculture is agricultural production that is economically viable and does not degrade the environment over the long run [9]. The Committee for Agriculture of the Food and Agriculture Organization of the United Nations (FAO) [10], as well as other studies related to agriculture sustainability, also emphasized that changes in perceptions in relation to the interpretation of sustainable agriculture are emerging. Thus, the concept must extend to social, institutional and economic sustainability, and not exclusively environmental sustainability—the conservation and rational utilization of natural resources [11].

Agricultural sustainability can be defined as the state of four subsystems (economic, social, environmental and institutional) within which agriculture is operating [11]. Measuring sustainable development at an aggregate level, however, requires a broad integration of indicators of economic, environmental, and social changes.

Therefore, in order to make agriculture sustainable, the economic sustainability of this production sector must first be accomplished. General criteria of durable growth in agriculture should reflect mainly economic criteria, defined by economic efficiency, since the conception of sustainable agriculture includes the postulate of multifunctional development [12].

Thus, the present paper analyzes the performance of the agriculture sector and its impact on the Moldavian economy by using the custom-developed analytical framework in order to generate various perspectives that can be used to elaborate on an economic sustainable development strategy for the Moldavian agriculture sector.

#### **2. Literature Review**

The analysis of the performance of the Moldavian agricultural sector and its impact on the Moldavian economy was based on several scientific studies. The presented studies define the overall context while also describing relevant directions for the current research: a) the importance of the agricultural sector for the Moldavian economy; b) agricultural economical aspects like budgetary transfers to agriculture, agriculture as a strategic policy, agricultural funding in terms of subsidies and loans, budget sharing for agricultural research, irrigation, viticulture, and agricultural subsidy systems; c) the chosen crops' importance; and d) agricultural modelling scenarios developed to obtain better insights over a country's agricultural sector.

Related to the importance of the agricultural sector for the Moldavian economy, Valeriu et al. [2] highlights that in the Republic of Moldova, agriculture represents an important sector of the national economy, which has changed dramatically over time due to a wide range of factors of which the most important are disruptions in the production and distribution networks. This sector is particularly exposed to climate change that primarily causes large fluctuations in agricultural production. In his research, Valeriu [2] analyzed the development evolution of the agricultural sector of the Republic of Moldova and formulated several recommendations to overcome existing problems.

The agriculture importance is also presented by Timofti et al. [3] which shows that the agrarian sector is of national interest. Considering his opinion, the agriculture should be an engine of economic growth and the state should ensure medium and long-term performance of the agricultural sector by the adoption of effective economic policy. For example, economic policies could refer to agricultural import and exports.

There are several research papers presenting relevant economical perspectives of the Moldavian agricultural system. As presented by Stratan et al., the agricultural sector was considered a strategic one by the Moldavian governments. His study shows that from 2012 to 2015, budgetary transfers to agriculture and rural development increased from 698 million MDL (Moldavian Leu) to 1093 million MDL. Considering the registered inflation rate of 4.65% in 2012 and 9.67% in 2015, reported by the Moldavian National Bank, it can be stated that Moldavian budgetary transfers to agriculture and rural development increased, in real value, by 49.42%. It was a growth driven by an effort to modernize agriculture as a strategic policy. In the same period, the volatility of the budget expenditures was very high with a decrease in spending in 2008 and 2010 [13]. A significant share of the capital spending facilitated an upgrade of obsolete infrastructure, while more efforts were dedicated to the sustainable use of natural resources and risk management. As the author describes, other agricultural budgetary expenditures were related to physical infrastructure and business development for the sector modernization and to key services, with significant allocations for food safety and agricultural education and a smaller share of the budget spent on research, irrigation, viticulture and wine development, as well as support of high-value markets and risk mitigation.

The funding of the Moldavian agricultural sector is presented as a critical aspect during the past years. In his research, Efros [14] presents the problems faced by the farmers concerning various forms of subsidies. In his opinion, the agricultural subsidy system should be constantly in the focus of executive authorities. Thus, agriculture subsidizing should be a mandatory aid for the agricultural development as well as a means of attracting investments in this area. Efros [14] identifies several objectives regarding the allocation of subsidy funds: (a) increasing the productivity and competitiveness of the Moldovan agricultural products on domestic and foreign markets; (b) stimulating technology transfer and extension services; (c) increasing the income of agricultural producers; (d) ensuring food security; (e) reducing the poverty level of the Moldovan population; (f) attracting young farmers for agricultural activities in rural areas; and (g) ensuring the efficient use of natural resources and environmental conservation.

By analyzing the investment climate in the Moldavian Republic, the top points and the weak points, Natalia and Artur [15] highlight that while investments are important for economies in transition, the agricultural sector of the Moldavian Republic has many problems and one of the most important is the lack of financial resources. In her opinion, this is the cause of why the agricultural sector gross value added declined in the 2000–2010 period. Minviel and Latruffe [16] also investigated public agricultural subsidies related to their impact on farm technical efficiency, and discovered that subsidies are usually negatively associated with the farm technical efficiency.

Sargo and Timofti [17], in their research, analyzed the efficiency of investment in agriculture and determined the optimal level of investment for 1 ha of agricultural land, while also identifying a serious issue represented by the inefficient management of funding sources. In addition, the author emphasized that the need for funding in the agricultural sector grew as agricultural enterprises were consolidating in order to sell the products on domestic and international markets. Farmers needed to buy tools and equipment necessary for optimizing their business. Heavy investments were also made in seeds or fertilizers that were imported, usually at high costs. As such, the need for financial resources registered a continuously upward trend. If referring to high import costs and international integration, Zbanca et al. [18] mentioned that the objective of Moldova's integration into the international economic system requires a qualitative change from the current situation in the food sector. For Moldova, this would mean that the entrepreneurs should focus on crop diversification and the production of agricultural products with high added value, as required for profitable markets. Adrian [19] analyzed the import and export trends between the Republic of Moldova and the EU, focusing on their influence on economic growth.

The performance of the Moldavian agricultural productivity in a larger context was presented by Csaki and Jambor [20]. In their paper, they analyzed the agricultural performance of the Commonwealth of Independent States (CIS) countries between 1997 and 2016 in order to identify whether the states' transitions brought positive changes in agricultural productivity.

Besides indicators like loans, subsidies, GDP and GVA, we also resolved to add to our proposed framework the production of several crops. As described above, the framework crops were chosen according to their impact on the sector. In terms of specialized literature, there are several studies describing crop importance for the agricultural system.

Zbanca et al.'s [18] research aimed to provide a comparative analysis of cultivation of high-value crops for enabling local entrepreneurs to correctly select their crops based on the economic indicators and financial resources. The authors developed financial models for each crop, with high-value production (particularly fruit and vegetables) that would lead to the highest profits.

In another study, Ursu and Petre [21] specified that the area of cultivated wheat in the Republic of Moldova increased during the period 2007–2018. In 2018, a total area of 373 thousand hectares was used, displaying an increase of 18.41% compared to 2007. Still, the highest value was registered in 2008. Namely, 400 thousand hectares. Ursu and Petre [21] show that the average annual growth rate over 12 years was around 1.55% annually. Statistically, from 2007 until 2018, 347.3 thousand hectares were cultivated annually, with a standard deviation from this average of 30.7 thousand hectares that represented a variation of 8.86%. Even if the wheat cultivated area increased, the production (1,286,332 tons (2008), 736,660 tons (2009), 744,160 tons (2010), 794,783 tons (2011), 495,231 tons (2012), 1,008,647 tons (2013), 1,101,682 tons (2014), 922,283 tons (2015), 1,292,921 tons (2016), 1,250,700 tons (2017), and 1,162,800 tons (2018)) actually decreased from 2008 until 2015, with the minimum being reached during the 2012 drought. There are several factors that could explain why in a context defined by the expansion of the cultivated area, the production actually decreased: a lack of infrastructure and machinery, a poor irrigation system as well as poor seed and fertilizer quality.

As for the area of cultivated maize, it is the largest of all the analyzed crops, displaying an average of 460,580 hectares, with a small yearly increase of 0.48%. In 2018, 491,000 hectares were cultivated with maize, 5.36% higher than in 2007 [21].

Grape production, another parameter of our framework, is also a significant element of the Moldavian agricultural sector. A number of interesting aspects can be found in several studies [22,23]. Thus, in 2018, the Moldavian vineyard covered an area of 148,500 hectares with a total production of wine estimated in 2016 at 1.7 million hectoliters. In the year 2018, the Republic of Moldova boasted as being one of the most significant grape-producing countries, ranking in the 19th position in the world.

In the Republic of Moldova, vineyards and the wine sector offer the highest number of jobs in rural areas: 29 679 legal entities being involved in this sector of the economy. In Moldova in 2018, there were 187 wineries registered in the Wine Register and 68 had their own vineyards. As such, the wineries own 36% of the total vineyard area.

As for investments, in 2018 the amount was around 20 million dollars: 10.5 allocated for planting, 4.7 for modernization, and 1.7 million and 0.23 million for various programs. Moldavian Republic is

the country with the highest density of vineyards in the world, 65% of which planting white varieties and 35% red varieties [23].

Golban [24] presented the role and importance of financial services for the Moldavian horticultural sector, emphasizing the viticulture segment, in order to increase its competitiveness. He highlights that the modernization of the sector depends directly on the implemented financial services. His paper presents an analysis of the main financial services implemented in the horticultural sector (credits, subsidies and insurances) and the problems the farmers are encountering when accessing these services.

Besides research targeting the main agricultural crops presented above, there are also studies considering niche crops, like vegetables. Such an example can be found in the World Bank Report on the competitiveness in Moldova's agricultural sector [6], which focuses also on vegetables given its important economic impact, not only in terms of exports but also in the domestic economy. According to the study, there is a large number of small producers in this sector, meaning that the sector affects a large proportion of the population in the rural areas. This is also the sub-sector within agriculture in which most opportunities for increased competitiveness have been identified.

As our research presents, 2012 was an extremely difficult year for Moldavian agriculture as the Republic of Moldova suffered the combined impacts of poor rainfall and extremely high temperatures, which resulted in major losses in national crop production. Potopova et al. [25] shows that crop losses due to drought represent a complex issue as it involves the intensity, duration, and the developmental stage of the plants when drought occurs. In her studies, she investigated how to assess the drought-induced decline in crop harvest, as well as the drought variability and the yield sensitivity of winter wheat, maize, sugar beet and sunflower to such drought during their growth. Sutton et al. [26] identifies that the Republic of Moldova is one of the countries that is at a high risk due to climate change with the potential of having serious problems, as the majority of the rural population depends either directly or indirectly on agriculture for their livelihoods. In the same study, Sutton [26] highlights that, in the Republic of Moldova, drought can be one of the most severe natural hazards with extremely high economic and societal impact.

The scientific literature provides different modelling scenarios aiming to obtain better insights over a country's agricultural sector. Our study comes as an addition to the multitude of already developed models, as very few of them targeted the Moldavian agricultural sector.

As an example, we noticed the models targeting the relationships between the income per farm and the measurement of the farm performance. Kölling [27] performed surveys across different EU regions and investigated farmers' incomes and the way in which revenue data is used to evaluate Common Agriculture Policy (CAP) performance. After studying the farm sizes and income level of the agricultural population, Kölling [27] emphasized that these, along with the farm diversity, vary significantly. Actually, the averages used by the European Commission to compare incomes by farm size class, farm type and by region in FADN-RICA (Farm Accountancy Data Network—a data analysis tool designed to evaluate the income of agricultural holdings or farms and the impact of the Common Agricultural Policy) do not always demonstrate the extent to which certain groups of farmers are disadvantaged over others.

Another example of applied agricultural modelling can be found in Kern et al. [28], which presents a study in which multiple linear regression models were constructed to simulate the yield of winter wheat, rapeseed, maize and sunflower for the 2000–2016 time period in Hungary. He used meteorological data and soil water content as predictors, and based on a stepwise linear regression-like method, he obtained simple equations with well-interpretable coefficients. These could estimate crop yield with high accuracy. The explained variance was 67% for winter wheat, 76% for rapeseed, 81% for maize and 68.5% for sunflower. Holzworth et al. [29] also emphasizes the role of agricultural production modelling, with examples coming from all over the world, but focusing on different elements like environmental performance, greenhouse gas emissions, soil carbon changes, food security, pests and climate change. Yield prediction in Indian agriculture was studied by Sellam and Poovammal [30] in order to help farmers reduce their losses and to get the best prices for their crops. His research considered the analysis of environmental parameters, such as annual rainfall (AR), food price index (FPI) and area under cultivation (AUC), as they influence the yield of a crop; this in order to establish existing relationship among them. Similar with our proposed framework, Sellam and Poovammal [30] also used regression analysis (RA) to analyze the environmental factors and their infliction on crop yield. He considered the above parameters for a period of 10 years and established the relationship between the explanatory variables (AR, AUC, FPI) and the crop yield as a response variable.

Besides yield prediction models, like the one presented in [25], we also identified different studies, like [31], who aimed to model the impact of financial management performance on the agricultural enterprises of the Republic of Moldova by using nonparametric modelling of the economic efficiency.

Dubravka [32] also emphasizes that the share of gross value added by agriculture in the total GVA is one of the most important indicators regarding the importance of agriculture in the economic structure. By using linear regression methods, applied for examining the impact of GVA on Serbian agriculture and on total GVA, she showed that the movement of agriculture GVA has a statistically significant influence on the movement of total GVA.

Jones et al. [33] reviewed agricultural modelling, stating that modeling represents an essential tool in agricultural systems science and these days the "next generation" models, data and knowledge products are facing increasingly complex systems. In his opinion, the technological progress has strongly contributed to the evolution of agricultural system modeling, including the development of process-based bio-physical models of crops and livestock, statistical models based on historical observations, and economic optimization and simulation models at the household and regional to global scales.

It is also true that many models were developed and, as a consequence, there is also much redundancy. In his research, Janssen et al. [34] describes that agricultural modeling is suffering from fragmentation in model implementation. There are many models, much redundancy, models often being poorly coupled, and component re-use is rare. In this context, he considers that in order to improve this situation, an open, self-sustained and committed community could be formed that would develop agricultural models, associated data and tools as a common resource. All agricultural systems modelling should instantly absorb state-of-the-art technologies, best practices and standard operating procedures.

The information presented in the literature review section of the present research reveals the importance of agriculture in the Moldavian economy, emphasizing the need for developing this sector in order to assure proper, long-term, economically sustainable progress. This section also presented some of the main aspects which need to be improved in order to modernize the agriculture sector and to encourage current entrepreneurs, as well as to attract possible new investors. The information related to grape production and the wine sector reveals the importance of adopting governmental policies to encourage linking crop production with the food processing sector. The literature review section also reveals the novelty and importance of agricultural modelling, based on crop production and economic indicators, for assuring economically sustainable progress.
