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Abstract

This paper is an analysis of whole - farm support policies along the line of the income stabilization proposed policy for grains (wheat and barley) in Khorasan. Such support policies differ from commodity - specific (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. S and S criteria, which show the situation of income fluctuations in absence and presence of the proposed policy respectively, have been calculated. The results show that the new policy would decrease the fluctuations in producers’ income form 3 to 27 percent.

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