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Evaluation of Agricultural Policy Reforms in Turkey
Agricultural policies in Turkey have evolved signifi cantly over time and the Agricultural Law of 2006 aims to
align Turkey’s policies with those of the European Union. Several emerging issues and challenges for Turkish
agricultural policies are discussed in this publication.
Chapter 1. Overview of the macro-economy and the agricultural sector Evaluation of Agricultural
Chapter 2. Evolution of agricultural policies
Chapter 3. Agriculture and rural development Policy Reforms in Turkey
Chapter 4. Agriculture and the management of natural resources
Chapter 5. Evolution and decomposition of support to agriculture
Chapter 6. Future directions for agricultural policies
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Please cite this publication as: in
OECD (2011), Evaluation of Agricultural Policy Reforms in Turkey, OECD Publishing. Tu
http://dx.doi.org/10.1787/9789264113220-en rk
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ISBN 978 92-64-11309 1 -:HSTCQE=VVXU^V:
51 2011 09 1 P

Evaluation of
Agricultural Policy
Reforms in Turkey
This work is published on the responsibility of the Secretary-General of the OECD. The
opinions expressed and arguments employed herein do not necessarily reflect the official
views of the Organisation or of the governments of its member countries.
Please cite this publication as:
OECD (2011), Evaluation of Agricultural Policy Reforms in Turkey, OECD Publishing.
http://dx.doi.org/10.1787/9789264113220-en
ISBN 978-92-64-11309-1 (print)
ISBN 978-92-64-11322-0 (PDF)
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FOREwORD
FOREwORD
Foreword
A
gricultural policies in Turkey have evolved significantly over time and the new Agricultural
Law agreed in 2006 aims to align Turkey’s agricultural policies with those of the European Union.
The main purpose of this study is to evaluate recent policy developments in the context of a broader
review of policy developments since the implementation of the Agricultural Reform Implementation
Project (ARIP) in 2001.
The author of the report is Dimitris Diakosavvas, of the Directorate for Trade and Agriculture.
The study draws on background papers prepared by two consultants: Professor Erol Çakmak, (Middle
East Technical University, Ankara, Turkey), who prepared a background paper dealing with Turkey’s
agricultural policy reform programme, and Professor Ali Koç (Akdeniz University, Antalya Turkey),
who prepared a background paper dealing with price transmission to farmers in Turkey. Editorial
assistance was provided by Theresa Poincet. Françoise Bénicourt and Theresa Poincet provided
secretarial support and prepared the report for publication.
EVALUATION OF AGRICULTURAL POLICY REFORMS IN TURKEY © OECD 2011 3

TABLE OF CONTENTS
TABLE OF CONTENTS
Table of Contents
Foreword .................................................................. 3
Executive Summary ............................................................ 9
Chapter 1. Overview of the Macro-economy and the Agricultural Sector in Turkey .. 13
1.1. Main features of the Turkish economy ................................. 14
1.2. Key macro-economic developments ................................... 14
1.3. Agriculture in the economy .......................................... 16
1.4. Farm structure ..................................................... 17
1.5. Agricultural production ............................................. 25
1.6. Food consumption and self-sufficiency ................................ 30
1.7. Agri-food trade profile ............................................... 31
Notes .................................................................. 36
Bibliography ............................................................ 36
Chapter 2. Evolution of Agricultural Policies in Turkey .......................... 39
2.1. Agricultural policies: Objectives ...................................... 40
2.2. Institutions ........................................................ 41
2.3. Domestic agricultural policies ........................................ 44
2.4. Agricultural trade policies ........................................... 50
Notes .................................................................. 54
Bibliography ............................................................ 55
Chapter 3. Agriculture and Rural Development in Turkey ........................ 57
3.1. Background ........................................................ 58
3.2. National Rural Development Strategy ................................. 59
3.3. Agriculture-related rural development programmes ..................... 60
Notes .................................................................. 65
Bibliography ............................................................ 66
Chapter 4. Agriculture and the Management of Natural Resources in Turkey ...... 67
4.1. Environmental performance of agriculture ............................. 68
4.2. Agri-environmental policies .......................................... 71
Notes .................................................................. 73
Bibliography ............................................................ 73
EVALUATION OF AGRICULTURAL POLICY REFORMS IN TURKEY © OECD 2011 5
TABLE OF CONTENTS
Chapter 5. Evolution and Decomposition of Support to Agriculture in Turkey ...... 75
5.1. Total support to the agricultural sector ................................ 76
5.2. Transfers to producers .............................................. 78
5.3. Transfers to consumers ............................................. 83
5.4. General support to the agricultural sector .............................. 84
Chapter 6. Future Directions for Agricultural Policies in Turkey .................. 87
6.1. Overall assessment of policy reform progress since the mid-1980s ........ 88
6.2. Issues and challenges for policy ...................................... 98
6.3. Key policy recommendations ......................................... 111
Notes .................................................................. 113
Bibliography ............................................................ 113
Tables
1.1. Educational attainment by economic sector, 2009 ....................... 18
1.2. Equivalised household disposable income, 2002-08 ...................... 19
1.3. Holdings and land by size class: 1991, 2001 and 2006 .................... 20
1.4. Distribution of holdings according to typology classification, 2006 ......... 21
1.5. Agricultural land by main use, 1988-2009 .............................. 22
1.6. Irrigated and non-irrigated land by land use, 2006 ....................... 23
1.7. Number of plots per farm holding: 1980, 1990, 2001, 2006 ................. 24
1.8. Turkey’s ranking in world production top-10, by selected crop, 2009 ........ 26
1.9. Self-sufficiency ratios, 1985-2007 ...................................... 31
1.10. Trade in agri-food products, 1996-2010 ................................. 32
1.11. Turkey’s agri-food trade by destination and origin, 2007-09 ............... 35
1.12. Bilateral trade: EU – Turkey ........................................... 35
2.1. Agricultural structure, 2006 and 2013 .................................. 40
2.2. Applied m.f.n. tariffs on agri-food products by HS2, 2007-10 .............. 51
2.3. Turkey: Export subsidy rates, 2010 .................................... 53
3.1. Expenditures of the IPARD programme for Turkey, 2007-09 ............... 61
5.1. Composition of Producer Support Estimate in Turkey
and the OECD area ................................................... 80
5.2. Drivers of change in market price support, 2007-09 ...................... 82
5.3. Producer NAC and Producer NPC, Turkey and OECD average .............. 82
6.1. Hazelnut area and production, 2001-09 ................................ 93
6.2. Intervention purchases of TMO, 2000-10 ............................... 94
6.3. Distribution of agricultural budgetary payments, 2006-10 (%) ............. 96
A.1. Selected economic indicators, 1986-2009 ............................... 118
A.2. Agricultural employment, 1988-2009 .................................. 119
A.3. Employment in agriculture by rural-urban status and gender, 1995-2009 (%) 119
A.4. Employment in agriculture by type of labour and gender (000) ............ 120
A.5. Distribution of holdings according to economic
size and typology classification, 2006 (%) ............................... 120
A.6. Agricultural land and forest area (000 ha) .............................. 121
A.7. Production, area and yields by selected crop, 1988-2009 .................. 122
A.8. Value of production and cultivated land by region, type of production
and type of land, 2009 (%). ........................................... 123
6 EVALUATION OF AGRICULTURAL POLICY REFORMS IN TURKEY © OECD 2011
TABLE OF CONTENTS
A.9. Agricultural exports, imports and trade balance, 1996-2010 .............. 124
A.10. Exports and imports of agro-food by principal commodity group
and selected years (million USD) ...................................... 125
A.11. Turkey’s agro-food trade by destination and origin, 2007 ................. 126
A.12. Top-10 Turkey export markets for selected commodities ................. 127
A.13. EU exports to and imports from Turkey (million EUR) .................... 128
A.14. Turkey: Purchasing prices for cereals, sugar and tobacco ................. 129
A.15. Preferential tariff quotas on agricultural and processed
agricultural products, 2010 ........................................... 129
A.16. Fertiliser use by crop in Turkey, 2007 (%) ............................... 131
A.17. Organic farming in Turkey 2004-09 .................................... 131
Figures
1.1. Inflation and the exchange rate, 1986-2010 ............................. 15
1.2. Contribution of agriculture to the economy, 1980-2009 ................... 17
1.3. Employment status, overall economy and agriculture, 2009 ............... 18
1.4. Distribution of equivalised household disposable agricultural
and non-agricultural income, by income quintiles, 2008 (%) ............... 19
1.5. Distribution of agricultural equivalised household disposable income,
by income quintiles ................................................. 20
1.6. Value of agricultural production by commodity groups, 2006-08 ........... 25
1.7. Livestock numbers, 1989-2009 ........................................ 27
1.8. Meat production volume, 1989-2009 ................................... 28
1.9. Evolution of per capita food supply, 1980-2007 ........................... 30
1.10. Agricultural exports, imports and trade balance, 1996-2010 ............... 32
1.11. Agricultural trade quantity indices, 1986-2006 .......................... 33
1.12. Agricultural trade unit value indices, 1986-2006 ......................... 33
1.13. Shares of unprocessed agricultural products in agricultural exports
and imports, 1986-2009 .............................................. 34
4.1. Fertiliser use, 1985-2008 ............................................. 70
5.1. Total Support Estimate in Turkey, by source and beneficiary, 2007-09 ....... 76
5.2. Evolution of Total Support Estimate in Turkey and the OECD area,
1986-2009 ......................................................... 77
5.3. Total Support Estimate by country, 1986-88 and 2007-09 .................. 77
5.4. Evolution of producer support in Turkey and the OECD area, 1986-2009 .... 78
5.5. The Producer Support Estimate by country, 1986-88 and 2007-09 .......... 79
5.6. Composition of the Producer Support Estimate, 1995-2009 ................ 79
5.7. Share of payments based on input use in producer support,
1986-88 and 2007-09 ................................................ 80
5.8. Producer Single Commodity Transfers by commodity, 2007-09 ............ 81
5.9. Producer Nominal Protection Coefficients in Turkey and the EU,
by commodity, 2007-09 .............................................. 83
5.10. Evolution of consumer support indicators in Turkey and the OECD area,
1986-2009 ......................................................... 83
5.11. Evolution of the General Services Support Estimate by component,
1995-2009 ......................................................... 84
6.1. Evolution of producer support: Most-distorting and other policies ......... 88
EVALUATION OF AGRICULTURAL POLICY REFORMS IN TURKEY © OECD 2011 7
TABLE OF CONTENTS
6.2. Share of area-based and commodity output-based payments
in total payments to farmers, 2003-09 ................................. 97
6.3. Productivity in the agricultural and non-agricultural sectors, 1998-2009 .... 98
6.4. Labour productivity of agriculture in Turkey: Comparison with selected
countries, 1998-2008 ................................................ 103
6.5. Producer price relation between the EU and Turkey for selected
commodities, 2004-09 ............................................... 103
6.6. Relation of producer prices in Turkey and Greece for selected
Mediterranean-zone commodities, 2006-08 ............................. 104
6.7. Producer support in the EU and Turkey ................................ 106
6.8. water use in Turkey by source, 2008 and 2023 ........................... 111
8 EVALUATION OF AGRICULTURAL POLICY REFORMS IN TURKEY © OECD 2011