Energy and imported trout egg subsidies hold a pivotal role for Iranian trout farms. They aim to decrease production costs, yet their impact on the profit efficiency of farms remains dubious. The first objective of this paper is to assess how the current subsidy scheme affects the profit efficiency of hatchery and propagation trout farms in Mazandaran, Iran. We examine several subsidy reform scenarios to enhance profit efficiency as a second objective. Standard profit efficiency (SPE) is used to acquire the efficiency of the trout farms using data envelopment analysis. Results show that the majority of farms are inefficient and highly dependent on subsidies. Comparing farms with high efficiency against those with low efficiency as a third aim of research highlights the importance of farms holding a propagation license, engaging in vertical integration, achieving adult trout production surpassing 81 t, and maintaining a fish total feed consumption to trout production ratio below 0.74. Findings from reformation scenarios reveal 1) redirecting the current subsidy towards purchasing the extruder machines for fish feed production, 2) transferring funds to subsidize electricity based on the farm's electricity consumption, and 3) opting for the production of genetically modified eggs gives higher SPE. Reformation can also reduce the burden on public funds and dependency on importation.
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