Analyzing the Selection of Different Fertilizer Subsidy Policies in Wheat Farmers\' Point of View in Sistan Region

Abstract

 This study draws upon the first and second degree stochastic dominance as well as the stochastic efficiency with respect to a function used for selecting the fertilizer subsidy policy in wheat farmers' point of view in Sistan region. Required data are collected through questionnaires (in the crop year of 2011-12), and six policies are designed to do the research. In addition, farmers are divided in the three categories of small, medium and large owner farmers; then, based on stochastic dominance criteria, their viewpoints of selecting the fertilizer subsidy policy are examined. Finally, the calculation difference in the average certainty equivalent in small, medium and large owner farmers indicate that with increasing size of farm due to higher mental value of fertilizer direct subsidy policy among large owner farmers, these farmers are found to be more sensitive to the elimination of fertilizer subsidy.         

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