The strategic objectives of agricultural policies, as identified in the 10th Development Plan (2014-18) are to develop a globally competitive and environmentally-friendly agricultural sector, and to provide sufficient and balanced nutrition to Turkish people. Particular emphasis is given to R&D, innovation, productivity growth, improving and strengthening of the food safety infrastructure and increasing efficiency of water use in agriculture. Turkey is currently in the process of preparing the 11th Development Plan (2019-23).
Replacing the former five-year plan, the 2018-2022 Strategic Plan of the Ministry of Food, Agriculture and Livestock (MoFAL) has been prepared with the objectives to develop a globally competitive and environmentally-friendly agricultural sector, which provides sufficient and balanced nutrition to the population. Particular emphasis is given to R&D, innovation, productivity growth, improvement and strengthening of the food safety infrastructure and increased efficiency of water use in agriculture.
The 2018-22 Strategic Plan defines seven strategic areas in the agricultural sector: i) agricultural production and supply security; ii) food safety; iii) phytosanitary and animal health; iv) agricultural infrastructure and rural development; v) fisheries and aquaculture resource management; vi) research and development; and vii) institutional capacity building. In addition to these seven areas, improvement of agricultural statistics is also included, which is also a part of harmonization process with the European Union
Import tariffs, complemented by purchasing prices fixed for cereals and sugar beet, provide support for domestic production. Export subsidies are applied to a number of products including processed fruit and vegetables, poultry meat and eggs. Export subsidies are granted in the form of reductions of the exporters’ debts vis-à-vis public corporations (for example, for taxes, and telecommunications or energy costs) (WTO, 2016). Production quotas are applied at the farm level for sugar beet.
Deficiency payments (“premium payments”) are provided for the products that are in short domestic supply. The payment covers the difference between the market price and the target price that is calculated based on production and marketing cost. Deficiency payments were first introduced in 2002 for oilseeds, olive oil and cotton and later for tea (2004), grains and paddy (2005) and pulses (2008).
Hazelnut producers receive payments based on area. Area payments are also provided for fodder crops, organic farming, good agricultural practices, certified seeds, gasoline and fertiliser use. Most farmers’ incomes are below the minimum taxable income threshold and are hence not subject to income taxes.
Payments based on input use are provided mainly in the form of interest rate concessions and payments to improve animal breeds and farm production capacity (e.g. field levelling, drainage, soil improvement and protection and land consolidation). Farmers and agricultural enterprises benefit from concessional loans offered by the Ziraat Bank (TCZB) and Agricultural Credit Co-operatives (ACC). Interest rate concessions vary by type of agricultural operation (livestock breeding, irrigation, organic agriculture and good farming practices).
A number of regulations control water and soil pollution, and provide protection to wetlands. Land conservation payments protect the quality and ensure sustainability of natural resources in agricultural lands. The government plays a major role in providing infrastructure investment, especially for irrigation, including within the South-Eastern Anatolia and Konya Plain Projects.
After the close of two state-owned marketing boards (see below), Turkey continues to maintain two others for agricultural products: the Turkish Grain Board, and the Meat and Milk Board. Although the importance of their role in agricultural marketing has declined, marketing boards provide price support through commodity purchasing and stockpiling. They also disburse subsidies, procure and supply inputs to farmers, and are involved in the importing and exporting of agricultural commodities (OECD, 2011).
The Action Plan for the Program on Enhancing Efficiency of Water Use in Agriculture, introduced in 2015, prioritizes modernizing irrigation infrastructure, extending water saving practice for agricultural producers through training and extension programmes, revising support policies based on water scarcity and improving the governance of water policies. The plan aims to decrease the use of underground water and increase the use of water-saving irrigation technologies.
On rural development, a new National Rural Development Strategy was issued in 2014. The ongoing support on rural development projects involves co-financing with the beneficiaries to mobilise private-sector resources. Public investments to improve the agricultural infrastructure have been accelerated to boost the agricultural production and increase the competitiveness of the sector. MoFAL also increased funding to IT projects, to improve data collection and the monitoring network and its efficient use, and to develop traceability in the sector.
Since the mid-2000s, specific rural development policy frameworks have emerged in the context of Turkey’s efforts to comply with the EU acquis. The first national Rural Development Strategy for 2007-13 was adopted in 2006 as the basis of the EU Instrument for Pre-Accession Assistance Rural Development (IPARD-I). IPARD is intended to address the country’s needs in the pre-accession period in the area of rural development. In the framework of the IPARD-1, in total EUR 1.2 billion (USD 1.3 billion) of public contribution was allocated to the rural development projects by the end of December 2016. Turkey has launched its IPARD-II for 2014-20 with a budget of EUR 1.04 billion (USD 1.27 billion).
