Effects of agricultural supports on farmer’s revenue and product costs: The case of Turkey

Semerci A.

Custos e Agronegocio, vol.12, no.3, pp.71-96, 2016 (SCI-Expanded) identifier

  • Publication Type: Article / Article
  • Volume: 12 Issue: 3
  • Publication Date: 2016
  • Journal Name: Custos e Agronegocio
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Social Sciences Citation Index (SSCI), Scopus
  • Page Numbers: pp.71-96
  • Keywords: Agriculture, Policies, PSE, Support, TSI, Turkey
  • Çanakkale Onsekiz Mart University Affiliated: No


Supporting of agricultural production is one of the up to date issues throughout the world. The part of the society, which is engaged in agricultural production sectors, is supported with different kinds of instruments and on different levels according to their unique agricultural conditions. World Trade Organisation regulates the supporting of agriculture with some rules. The countries that violate these rules are exposed to different sanctions. In parallel with the developments in the supporting of agriculture, there is effort for liberalisation of this support from production in Turkey. In 2012, Producer Support Estimate, used as an indication of the agricultural support among OECD countries, has been carried out 7% in the United States, 19.4% in EU, 11.6% OECD-wide and 22% in Turkey. Whereas only 2% of the 2015 budget of Turkey has been reserved for agricultural supports, this share constituted 42% of the EU budget in 2013. In the USA, however, the amount reserved for the agricultural supports was above 100 billion USD. In Turkey, the amount reserved for the agricultural supports in Turkey in 2015 is US$3.7 billion. Yet, the share for agricultural supports according to Agriculture Act accepted in 2006 was needed to be at least US$7.2 billion. In the present study, it is confirmed that agricultural support amount per enterprise in Turkey is 4.3 times lesser than EU average. Agricultural supports do have product cost reducing and producer revenue increasing effect. In Turkey, the wheat crop’s share in total supports in 2013 is 23.58% and the sunflower crop’s share is 34.21%. The supports provided an increase of 7.58% in wheat producers’ revenue and an increase of 20.83% in sunflower producers’ revenue. In order to secure the food offer and quality, to ensure an increase in the producer’s welfare and help consumers to obtain food for reasonable prices, it is inevitable that the applied agricultural support policies should be long termed, based on planning, suitable for World Trade Organisation’s rules and compatible with the EU Partner Agriculture Policy. In this context, reserving sufficient budget for agricultural support practices, determining the agricultural support unit prices more realistically without effecting the market prices and production level will play a significant role in making agriculture sector open to competition with other nations as well as reducing crop costs, in other words increasing the producers’ revenues.