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Agricultural Economics

Agricultural Economics. Lecture 10: Turkish Agricultural Support Policies. 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

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Agricultural Economics

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  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. 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

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