The Effects of Government Support Policies on Income Risk And Production cost of Selected Horticultural Products (Pistachio, Date, Apple and Citrus)

The Effects of Government Support Policies on Income Risk And Production cost of Selected Horticultural Products (Pistachio، Date، Apple and Citrus) Considering the importance of horticultural subsector in the Iranian economy with its share in production and comparative advantage، this paper aims to asses the impact of producer support policies using producer support estimate (PSE) method with emphasis on variables such as income risk and production costs. PSE was calculated for selected horticultural products (Pistachios، dates، apples and citrus) for 1989-2010 periods. The effect of PSE on the income risk was estimated using standard coefficient of variation of Cady and Della Valle (CCV). The results showed that government support policies reduced income risk by 52. 5، 0، 11. 5، and 31. 06 percent for date، pistachio، apple and citrus respectively. The effect of supporting policies on production cost was estimated using production cost function showed that production cost of date، pistachio، apple and citrus declined by 0. 4، 0، 0. 04 and 0. 05 percent respectively.