1. Agricultural Economics Lecture 10: Turkish Agricultural Support Policies

2. Agricultural Support Policies Nearly all countries practice support policies in agricultural sector due to:  Contribution to economic development Food suppy Efficient use of resources Curb rural migration  Sustain economic balance External trade balance Price balance Balance in farm incomes Balance in government budget  Environmental protection Sustain rural lanscape Protect natural water resources Protect ecological balance

3. Agricultural Support Policies in Turkey A) Price supports  Cereals  Tobacco  Sugar beet B) Income supports  Chemical fertilizer  Seed  Feed  Artifical insemination  Animal for breeding  Pesticides  Irrigation and electricity  Credit

4. C) Direct Income Support  Incentive premiums (meat; milk)  Compensation payments Tea (budama tazminatı) Tobacco (quata compensation) Hazelnut (set aside program and income deficiency payment)  Deficiency payment Cotton Silk moth Wool Olive oil Sunflower, soybean, kolza  Natural hazard payments  General service support  Tax incentives; investment incentives

5. Support19951996199719981999200020012002 1. Price Supports: Cereals (TMO)230190407417352345410 Tobacco112048140206237229147 Sugarbeet37541803123695254841002 Tea513286310681137176 ASCU28651243963904006410 Total8318257013181488159518361735 1. Input Support: Fertilizer1045841249995760 Pesticides13491012180 Seed00121310 Total114889135110 950 3. Animal support00000124156 1. Premiums Milk25681012 0 Meat00000000 Total25681012 0 5. Compensations Tea12243162740 Tobacco24600000 Natural hazards1158161300 Total47131219292740 6. DFİFuse339111239385 240 7. Def. Paym. (premium)1050111184338107 8. Dr. Inc. Sup.00000084192 9. Agricultural Bank00000872620 General Total (USD)2,33,55,26,65,13,92,22

6. Evaluation of Agricultural Support Policies in Turkey Cost of support  Producer subsidy equivalent  Market price support Types of producer’s support:  Market price  Payment based on output  Payment based on area  Payment based on historical entitlement  Payment based on input use