Agricultural Input Subsidies and the Marketing of Agricultural Products

Abstract

The effect of agricultural input subsidies for farmers and other factors on the marketing of agricultural products is investigated in this paper. We first constructed a PLS-SEM; based on that, we designed survey questionnaires for Karaj city in the Alborz Province. The internal model shows that the method of production has the strongest effect on purchase intentions, followed by online purchases and input subsidies. Empirical analysis based on the questionnaire and PLS-SEM shows that the advertising variable has the strongest effect on the economic factors variable, followed by input subsidies and the distribution system. The path relationships between advertising, input subsidies, and the distribution system and economic factors are significant and show that all three variables are relatively strong predictors of economic factors.