Iran's objectives for the third millennium include:
Determination of the production capability of the country's soil and water resources.
Increased yields of agricultural crops.
Protection of the environment.
Improved food quality.
Monitoring changes in the quality of soil and water resources under intensive farming.
At present the unavailability of certain fertilizers when needed by farmers is a more serious constraint than their prices. The cost of fertilizers (even without subsidies) amounts to less than 7 percent of the total production costs. The capacity of storage facilities in consumption areas needs to be increased and the timing and supply of appropriate fertilizers need to be improved.
In order to improve yields, soil testing on a national scale is necessary, so that fertilizer rates can be based on soil and plant analysis data. This may involve support to private laboratories.
Subsidized mineral fertilizers are often traded by intermediate dealers, sold to farmers at inflated prices or even smuggled out of the country. It has been recommended that the subsidies should be concentrated on strategic crops such as wheat and on objectives such as improving the organic matter status of the soils, which has deteriorated drastically during the past 20 to 30 years (Malakouti and Balali, 2004).
