Agricultural credit, research and education programs, and the


policies of the Turkish government as incentives to farmers to boost the
agricultural sector:

government stimulates production through crop subsidies, low taxation, price
supports, easy farm credit, research and education programs, and the
establishment of model farms. The government also controls the conditions under
which farm products can move into world markets. For some products, such as
grain, the government is the sole exporter. Turkey has recently begun exporting
vegetables and fruits abroad, which has affected domestic market prices. Cotton
and tobacco production levels are increasing as demands by the textile and
cigarette industries have risen.

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were no major changes in agricultural support policies in 2007. The 2006 Law on
Agriculture stipulated convergence of Türkey’s agricultural support policies
with the prospective EU policies by the end of 2010. The Agricultural Reform
Implementation Project (ARIP) is to be completed at the end of 2008. The Rural
Development Programme under Instrument for Pre- Accession (IPA) was approved by
the EU Commission and a wide set of investment activities continued.
Compensatory payments were granted to potato growers. The area-based diesel
payment granted under the Direct Income Support payment register was
differentiated according to products. Farmers also received an area-based
payment for fertiliser.

to producers (%PSE) increased by one percentage point to 21% in 2007, compared
to 2006. It increased from 16% in 1986-88 to 22% in 2005-07, but remained below
the OECD average. In 1986-88, the most distorting types of support (based on
output and non-constrained variable input use) accounted for almost all of
producer support and in 2005-07 for 79%. Reductions Of the most distorting
forms of support have been offset by increases in the Direct Income Support
payment, which represents 15% of support to farmers. In 2007, payments based on
output also increased, particularly for wheat, cotton and sunflower. prices
received by farmers in 2005-07 were about 23% higher than those received on the
world market. They were 17% higher during 1986-88.

share of single commodity transfers increased from 71% of producer supporting
1986-88 to 81% in 2005-07. Single Commodity transfers were over 40% for maize,
sugar and beef and 30% for eggs. The cost imposed on consumers, as measured by
the %CSE, in 2005-07 remained unchanged, at around 16%, compared to the 1986-88
period. Consumers paid prices in 2005-07 that were 21% higher than world prices,
the same percentage difference as in 1986-88.

share Of support for general services provided to agriculture in 2005-07
remained unchanged, at around 10% of total support, compared to the 1986-88
period. The level of support for general services declined by two- thirds
mainly due to lower payments to State Economic Enterprises for marketing and
promotion. The share of total support to agriculture in GDP declined by almost
one percentage point to 3%, compared to 1986-88.

extension of the ARIP to 2008 is broadly in line with an improvement in market
orientation and could enhance the targeting Of objectives. However, the
increase Of output-based support in recent years is a step backwards to more
distorting forms of support, which undermines ongoing reform efforts.

Food requirement of turkey and can turkey’s
agricultural sector meet the requirements?

Despite great progress, problems remain. Inputs are
available for many commodities but are not optimized. Seed generation is
insufficient for the country’s needs and the situation is exacerbated by a poor
distribution system. Problems also arise with seed certification and
origination rights. Artificial insemination of dairy animals has expanded but
falls far short of the livestock industry’s requirements. The program still
rests primarily in the public sector, with the private sector relegated to a
small role. The use of pastoral land and rangeland remains a problem. Since
these lands are considered community property, they tend to be overgrazed and overstocked,
thereby losing substantial productive resources. Land fragmentation is a major
obstacle to crop optimization. Where irrigation has been established, land
consolidation has occurred; where rain-fed agriculture remains, fragmentation
has increased.

Recently, government involvement has been limited
but intervention is viewed as a social contract. In the context of the sector’s
lower income, government supports have been a measure used to reduce the income
gap. However, this has not often resulted in optimal production and economies
of size.

Agricultural potential has not been fully realized
nationwide. The government is looking to agriculture to meet the increasing
demands of a growing higher-income population. To fulfil that challenge,
agriculture must become more efficient, more competitive and economically
viable, with minimal intervention.

To support economic growth and reduce the need on
food imports, Ankara launched a new national agricultural project that was on
the agenda of Turkey’s top officials yesterday. A special meeting was held at
the presidential complex in Ankara’s Be?tepe district yesterday with President
Recep Tayyip Erdo?an and Prime Minister Binali Y?ld?r?m in attendance. Speaking
at the meeting, Y?ld?r?m underlined that importing meat is not a sustainable
strategy for Turkey, therefore, the government will change the support system
in this area. Furthermore, President Erdo?an stressed that if Turkey still
needs to import agricultural products despite the rich resources the country
has, that must be a sign something is wrong. “We shouldn’t let the price
of tomatoes and peppers influence our inflation while we have such fertile
soil,” said the president.
The national agricultural project mainly covers six important points as
Basin-based production will be supported in agriculture. In relation to the
subject, certain products and the best places to grow them were determined in
941 basins in Turkey. Strategically, 19 products were identified. After
identifying the basins in which these products would be produced in a better
and cheaper way, the Agriculture Ministry established basin supports. Everyone
will plant in accordance with their basins, not their own wishes.
A 23 percent discount was made in the fertilizer that increases the cost in
agriculture. Farmers will pay half of the gas they use while the other half
will be provided by the government.
One-hundred-and-eighty-four plains will be declared as protected areas. Seven
million hectares of land will be aggregated. Aggregation and irrigation will be
collected under the Agriculture and Livestock Ministry. Currently, aggregation
and irrigation are run under different ministries. This situation causes lands
to be divided.
Imports will be conducted with breeding purposes. Districts for pasture-raised
animals will be established in 25 provinces. These provinces include 52 percent
of total pastureland and 32 percent of bovine animals. These places will be
rented to those who want to ranch in pasture lands for minimum prices with the
condition of breeding.
In order to prevent fluctuations and changes in the market and provide market
regulation, the Turkish Grain Board will be used effectively.
Support will be given twice a year, first during seed-time and later during
harvest. Farmers will make only one application in the first year. The first
support will be given during the April-May period while the second support will
be given during the September-October period. There will be no additional
support apart from the aforementioned dates. The amount of money currently
given to the farmers and livestock exceeds TL 13 quadrillion; however, the
support given in pieces over a 12-month period remain insufficient