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Abstract

Applying a linear Programming model to determine the limits of cost policy, demands necessary information by means of which the desired model can be built and the results can be analyzed. The efficiency of cost policy can be proved offective when it increases farmer’s pure income. For this purpose, the pure income of farmers should be calculated before and after applying the cost policy and then be compared with each other. In order to calculate pure income, some information which will provide us with incomes and costs is needed. By information about the price of products and functions the income can be calculated and by the gathering information about the total costs of planting, preservation and harvest, it is respectively possible to obtain the revenue of the total costs. With the results of these processes, the pure income can be obtained.
Next, in order to determine the pure income, those prices which are guaranteed by the government will be applied in the model. The results of comparison between the incomes before and after the cost policy application have indicated that this policy is not considerably efficient.

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