Analyzing Welfare Impacts of Fertilizer Subsidy Elimination among Fras Province Maize Growers
Subject Areas : Agricultural Economics ResearchS.N. Mousavi 1 , A. Khalooie 2 , Z. Farajzadeh 3
1 - استادیار گروه اقتصاد کشاورزی و عضو استعدادهای درخشان باشگاه پژوهشگران جوان دانـشگاه آزاد اسـلامی واحـد
مرودشت
2 - کارشناس ارشد اقتصاد کشاورزی دانشگاه آزاد اسلامی واحد مرودشت
3 - دانشجوی دکتری اقتصاد کشاورزی دانشگاه شیراز
Keywords: Fars province, Welfare Impacts, Fertilizer Subsidy, Maize,
Abstract :
Maize production accounts for the agricultural economic pivot of Fars province and any fluctuation in its production is expected to influence the household welfare. The chemical inputs are highly important in increment of agricultural products and especially in maize production increment. Regarding the necessity of optimal use of the inputs in production, in order to decrease farmers production costs as well as to saving the subsidies, this study attempts to analysis the welfare impacts of fertilizer subsidy elimination in maize production in Fars province (as the maize pivot). To get the objective of study cross section data set obtained throughout the Fras province selected farmers in 1387-88 were applied. Then profit, inputs demand and production functions were estimated and some analysis was developed. The results showed that fertilizer subsidy elimination results in increase in production cost and lower profit about 24.88 and 15.55 respectively since the fertilizer demand is inelastic with respect to its price changes. This means that price polices are not able to develop a solution to optimize the input use and complementary and compensatory polices are needed.