-

Abstract

This paper is an analysis of whole — farm support policies along the line of the income stabilization, proposed policy for grains (wheat and barely) in Khorasan. Such support policies differ from commodity specific schemes (i. e, price support) in that the unit of measurement is the individual farm rather than a unit quantity of commodity. This policy protects all the crops of any producer. Dynamic stochastic simulation method was used to measure the effects of this policy on the income of producers in Khorasan province and government costs. The governmental costs for the performance of the proposed policies, is between 61708 and 96646 Rials per hectare depending on producers’ income and their contributions. Considering the good results of proposed policy in reducing farmers’ income, the costs incurred by government for this policy are economically acceptable.

Keywords