Effects of Elimination Subsidies of Agricultural Inputs on Cropping Pattern in Varamin Region

Document Type : Research Paper

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Abstract

Subsidy imposes heavy financial burden upon public budget and as such Iranian government is looking for improvement of the subsidies programs recently. Since implementation of subsidy reform in 2011, some agricultural inputs subsidies such as fertilizers, pesticides and energy have been reduced. In this study, the effects of Target orientation of subsidies of agricultural inputs on cropping pattern of Varamin Township by using Positive Mathematical Programming approach with maximum entropy techniques have been determined. Policy limits are expressed in terms of two scenarios and the results indicated that acreage of cotton, wheat, barley, alfalfa and corn were less sensitive to increase in inputs prices compare to other crops. Onion was highly sensitive to increase in input prices and was removed from cropping pattern.

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