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To enrich the methodology of agricultural policy analysis, this study develops a micro-econometric framework to assess the short-term impact of subsidies. The distinguishing features of the methodology are the presumptions that the regional technologies are different and latent variables are significant. Relying on farm-level cross-section data from 14 atypical regions of Russia, the study supports the diversity of subsidy effects among the regions and reveals the prevailing positive effect of subsidies.