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Turkey has implemented ambitious agricultural policy reforms since the late 1990s. However, support remains higher than the average in the OECD area and the most distorting forms dominate.
Decoupled direct payments were abolished in 2009, while payments based on commodity output and current area have increased.
- Overall, since 1986-88, progress in policy reform aimed at improving market orientation has been variable. Frequent ad hoc changes to policy settings have been made, within a macro-economic context of high inflation. The share of producer support in gross farm receipts (%PSE) increased from 20% in 1986-88 to 27% in 2008-10, which is higher than the OECD average.
- In 2010, despite high world prices, the increase in output-based payments increased production and trade distortions in the beef, sheepmeat, poultry and egg sectors.
- Although the basin-based support system takes into account regional comparative advantage and by differentiating deficiency payments by location it could lead to a more efficient spatial pattern of production, the transfer efficiency of this type of support is very low and only a small portion of the benefits is received by producers.
- The anticipated withdrawal of the state from direct involvement in the production, processing and marketing of sugar, tobacco and tea by 2013 is welcome, but greater efforts need to be made to transform the remaining state trading enterprises and agricultural sales co-operative unions into truly commercial enterprises.
Turkey: OECD Producer Support Estimates (PSE)
Level and composition by support categories, 1986-2010
Evaluation of Agricultural Policy Reforms in Turkey (October 2011)
Turkey has done much to reform its agricultural policies in recent years but its farm policies are still too protectionist, with high levels of support to farmers and heavy protection against imported foodstuffs.
Turkey could boost its competitiveness in agriculture by renewing efforts to decouple farm support from production while continuing with institutional reforms, according to this report. These steps will also prepare Turkey for possible future European Union membership.