Considering welfare effects from fertilizer subsidy removal on wheat and barley

In the present study, considering the effects of chemical fertilizer subsidy removal on the welfare of both producers and consumers of wheat and barley by using the time series data of Iran from 1387-1357. Changes in welfare dependant on changes in consumer surplus and producer surplus. Therefore, consumer welfare by calculating the consumer surplus and producer welfare by calculating producer surplus is obtained. For considering of these changes, estimating of supply and demand in these products by subsidy and without subsidy on chemical fertilizer is essential. And eventually eliminate subsidies on each of these two products were investigated The results show that fertilizer subsidy removal reduces consumer and producer surplus of wheat and barley that this decline in wheat is higher, also removal of fertilizer subsidy reduced government spending and in total removal of fertilizer subsidy caused to increasing in net welfare of wheat and barley. Also considering of removal of fertilizer subsidy policy showing that this policy in barley to wheat in the net increase in welfare is more efficient operation, means that the net welfare of wheat compared with barley to eliminate fertilizer subsidies, is more sensitive.