AGRICULTURAL POLICY REFORM IN TURKEY: Farm Size Characteristics and Impact
Erol H. Cakmak and Hasan Dudu Department of Economics, Middle East Technical University, Ankara
Emerging Economies Research Dialogue, Beijing, November 14-15, 2011
Outline • Overview of the Agricultural Sector – Recent Performance – Policy Framework – General Farm Size Characteristics
• Policy Reform: Major Components • Farm Size and Impact • Conclusion 2/23 Emerging Economies Research Dialogue, Beijing, November 14-15, 2011
Growth: GDP and Ag VA, 2000-2010
3/23 Source: TurkStat, 2011. Research Dialogue, Beijing, November 14-15, 2011 Emerging Economies
Labor in Agriculture, 1998-2010
Source: TurkStat, 2011b.
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Trade, 1998-2010
Source: TurkStat, 2011c.
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Policy Scene, 1998-2010 (percent)
6/23 Source: OECD, 2011. Emerging Economies Research Dialogue, Beijing, November 14-15, 2011
Land Size, 1991, 2001, 2006
Source: TurkStat, 2011c.
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Land Size, 2002 and 2004
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Land Use, 2002 and 2004 (percent)
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Components of Ag policy Reform • Reduce protection and price distortionary interventions, and privatization of SEEs. • Introduce Direct Income Support (DIS). • Farmer transition or alternative crop • Restructuring of ASCUs • Public information campaign, monitoring and evaluation 10/23 Emerging Economies Research Dialogue, Beijing, November 14-15, 2011
Protection in Agriculture – No change!
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Average Revenue and Income (2004TL/ha)
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Sources of Income (percent)
Kaynak: Wright, 2011.
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DIS Application Rates
Kaynak: OECD-FAO, 2011.
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Alternative Crop - Hazelnut
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Alternative Crop - Tobacco
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Credits Use, Coop membership…
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Source of Credits
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Marketing Channels
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Household Perception of Reform
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Level of Information about Reform
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Mean Efficiencies (percent)
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Conclusion • Macroeconomic stability is also important for agriculture • Reform eliminated non-budgeted expenditure, transparency achieved • DIS never liked by the policy makers and some NGOs, but entered in the tool box. • Small holding agriculture was not and will not be high on the priority list, but they make themselves viable or quit farming. • Higher world prices may be an opportunity to pave the way for small sizes by targeted support. 23/23 Emerging Economies Research Dialogue, Beijing, November 14-15, 2011
