Agricultural sector has long been strongly supported in Iran. The mam purpose is to show the relationship between price support and total factor
productivity growth. This study is restricted with the Iranian agricultural sector and data has been gathered the period from l366-67 to 1377-78. The
selected crops include wheal (irrigated, rain - fed), barley (irrigated, rain fed), rice, cotton, sugerbeet and potato. Using by pooled cross section and
time series data and the suitable model, efforts have been made to answer the
following questions. Is there any relation between price support and proudctivity growth in agricultural products? Is the impact of price support
un productivity growth in agricultural products same across different crops? The results obtained show that the average productivity growth in irrigated
crops is negative and in rain - fed crops is positive. Also, the Statistical test
demonstrates that productivity growth is positive and significant at ten percent
confidence interval li)r only three crops, that is, wheat (rain-fed), barley
(rain-fed) and sugerbeet.