what is the contribution of agriculture to turkish gdp quarterly
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26. Turkey
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Support to agriculture
Since the 1980s, transfers provided by the government accept comprised more than than twenty% of farmers' acquirement, with most of this back up directed at influencing the market place price of agricultural products. Full support to agriculture has been every bit high every bit four% of GDP, but has declined equally the importance of agriculture in the overall economic system has diminished and is now nearly ane.5% of Gross domestic product.
The level of support in Turkey fell in 2018 and 2019, driven mainly past reductions in market toll support (MPS) resulting from a depreciation in the value of the Turkish lira. The reduction in MPS has been partially compensated by increased premium payments, which cover the difference between target and market prices. Those for cereals doubled betwixt 2018 and 2019. The largest amounts of these premium payments for cereals are for wheat and barley, but rye, oats, and paddy rice also saw premiums double in 2019.
Despite the recent reduction, MPS however accounts for two-thirds of the estimated support provided to producers in Turkey. Premium payments, specially for cotton and wheat, acreage payments to reduce the toll of diesel and fertiliser, and subsidised insurance coverage for crops and livestock are the most important monetary payments providing help directly to farmers.
Expenditures on infrastructure development for irrigation are the largest class of support for general services benefitting the sector overall (GSSE), amounting to 75% of the GSSE. Fiscal support to land enterprises involved in article marketing is the other major course of such indirect back up.
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Main policy changes
The Eleventh Development Plan covering 2019-23 was established in July 2019. As for past Plans, its main objective is to develop an efficient agricultural sector that is environmentally, socially and economically sustainable. The Plan sets a number of measures and targets to be accomplished by 2023, including increased production of red meat and oilseeds, country consolidation and use of irrigation.
The 2019-23 Strategic Program of the Ministry building of Agriculture and Forestry (MoAF) was also established in line with the Development Program. Information technology sets seven strategic objectives for the agricultural sector, including increasing food production, quality and safety.
Turkey'due south National Strategy Document and Action Plan on Prevention, Reduction and Direction of Nutrient Losses and Waste were prepared in collaboration with the FAO in 2019 as part of a new global initiative called the "Save Food" campaign.
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Assessment and recommendations
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Currently, many commodity marketing enterprises established past the government require regular upper-case letter infusions. To put them on a more than cocky-sufficient footing, the government could consider reforms to their operating weather condition to allow more independence and flexibility. Allowing farmers more options to make use of other marketing channels can also impose more financial discipline on these firms while giving farmers additional flexibility to take reward of market place opportunities.
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The most of import form of support to farmers is market price support. This is among the about distorting forms of back up and a relatively inefficient way of supporting the incomes of farmers. A better option could exist to help farmers obtain financing for investment and to deal with financial risk in the context of exchange rate uncertainty.
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Turkey allocates a relatively modest share of spending on investments in innovation, services to farmers to help them amend their farming practices and education and training for farmers. Given the depression estimates for productivity growth in agriculture, a greater emphasis on these essential services should be considered.
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Policy objectives currently mainly target product levels. Greater emphasis on improving productivity and efficiency in the context of environmental sustainability would likely yield improve long term results for the sector.
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Turkey's Nationally Determined Contributions (NDCs) to the 2016 Paris Agreement aims to reduce emissions by up to 21% compared with business organization as usual projections past 2030. There are no specific targets for agriculture and no electric current policies designed exclusively to reduce emissions from agriculture. Turkey has noted that plans will be made to reduce emissions via fuel savings, rehabilitated grazing lands, controlling the use of fertilisers and supporting modern practices including minimum tillage.
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Policy responses in relation to the COVID-xix outbreak
Agricultural policies
Turkey'due south Ministry building of Agronomics and Forestry announced several measures or expected measures on 29 March 2020 to ensure that seasonal workers can continue to piece of work. Agricultural workers volition be provided with hygiene and personal protection products and allowed to travel to agronomical areas in social club to take upward work. Weather condition for transportation and housing of seasonal workers are to be regulated.
Application deadlines for crop production supports for cereals and legumes accept been extended to 29 May 2020. Application deadlines for oilseeds and olives, organic agriculture and skilful agricultural practices have been extended to 30 April 2020.1
The ministry has suggested that farmers refrain from using domestic or urban untreated wastewater for irrigation due to the potential for contamination by COVID-nineteen. A guidance document on reuse applications of wastewater was released on ten Apr 2020.ii
Turkey has subjected lemons to export control amid a rising domestic need due to the coronavirus pandemic. The restriction first early Apr 2020 volition continue until the end of August 2020.3
The government of Turkey cut the custom duty to nothing for 100 000 tonnes of paddy rice imports until the cease of May.iv
Agro-food supply chain policies
Measures will exist taken to ensure access to agricultural inputs such as fertilisers, seeds and medicines or to forbid problems in distribution. To exercise this, stock command and inspection will exist carried out at fertiliser dealers.5
Support to producers (%PSE). For the by thirty years, support to producers has been above twenty% of gross farm receipts (%PSE); information technology only recently declined below that amount in 2017-19 every bit commutation rate movements finer reduced market cost back up (MPS) rates. Most support to producers is provided through MPS, one of the potentially most distorting forms of support and arising from market interventions, including consign subsidies which are provided for processed fruit and vegetables, poultry meat and eggs (Figure 26.ane). Single Commodity Transfers (SCT) for beef, sunflower seed and potatoes are more than twoscore% of commodity-specific gross subcontract receipts (Effigy 26.iii). Domestic prices were about 12% higher up earth prices in 2017-xix. Overall, total support to agriculture (TSE) represents less than 1.5% of Gross domestic product, but this ratio has been much college in the by. Almost of the back up other than market price support is provided for the irrigation infrastructure. The PSE has reduced in 2019, driven mainly by higher effective border prices and a reduced cost gap due to the aforementioned exchange charge per unit depreciation (Figure 26.two).
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Contextual information
Chief agriculture accounts for 6% of GDP and employs 18% of the workforce, making agriculture one of the most important sectors of the country'southward economy. Turkey is a net exporter of agricultural products, which business relationship for more than 10% of full exports, and admission to earth markets is a significant upshot for the sector. Notwithstanding various structural bottlenecks, such every bit the predominance of small-sized, subsistence and semi-subsistence farms, Turkey ranks equally a significant agricultural exporter of basics, dried fruits, and some fresh vegetables; main export destinations include the European Spousal relationship, Iraq, the Russia and the United States.
While Turkey'southward economic growth has been potent, information technology entered a period of macroeconomic uncertainty subsequent to a depreciation in the value of the lira since mid-2017, contributing to rise inflation and decreased investment. GDP growth was negative in late 2018 and early on 2019 but recovered in response to stimulus deportment by the government later in the year.
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Figure 26.iv. Turkey: Principal economic indicators, 2000 to 2019
Sources: OECD statistical databases; World Depository financial institution, WDI and ILO estimates and projections.
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Figure 26.5. Turkey: Agro-food trade
Annotation: Numbers may non add together up to 100 due to rounding.
Source: UN Comtrade Database.
Turkey'southward agro-food imports are dominated by primary and processed products for further processing by the domestic manufacture. These accounted for 78% of full agro-nutrient imports in 2018. In turn, candy and primary products for consumption are key consign categories, bookkeeping for 76% of total agro-food exports. The depreciation in the lira should favour exporters and reduce imports in the curt term.
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Figure 26.6. Turkey: Composition of agricultural output growth, 2007-16
Annotation: Principal factors incorporate labour, land, livestock and mechanism.
Source: USDA Economical Inquiry Service Agricultural Productivity database.
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Clarification of policy developments
Main policy instruments
The primary agricultural policy objective of the Eleventh Development Plan covering 2019-23, is to develop an efficient agronomical sector that is environmentally, socially and economically sustainable. The sector should provide an adequate and balanced nutrient supply while making utilise of advanced technology to be internationally competitive. To achieve this objective, the Plan sets a number of measures and targets to be accomplished by 2023, including increased production of cherry-red meat and oilseeds, land consolidation and utilise of irrigation.
In line with the Development Programme, the 2019-23 Strategic Program of the Ministry of Agriculture and Forestry (MoAF) sets seven strategic objectives for the agronomical sector:
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Increasing economic welfare in rural areas, ensuring food supply by increasing yields and quality in agricultural production
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Ensuring food and feed safe from product to consumption by taking necessary measures for plant and animal health and creature welfare
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Protecting aquaculture and fisheries resource
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Ensuring sustainable management of country and water resources
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Efficiently combating climate change, desertification and erosion
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Protecting biodiversity
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Improving institutional capacity
Turkey is a signatory to the Paris understanding. Agriculture represents vii.3% of total greenhouse gas (GHG) emissions in the state. In its Nationally Determined Contributions (NDCs), Turkey proposes to reduce agricultural emissions through fuel savings resulting from consolidation of agronomical land, rehabilitation of grazing lands, decision-making fertiliser use, implementation of modern farming practices and encouraging use of minimum cultivation farming techniques.
Export subsidies are practical to 14 commodity groups, out of the nineteen groups eligible under Turkey'southward WTO commitments. This included processed fruit and vegetables, poultry meat and eggs. Export subsidies are granted in the form of reductions of the exporters' debts to public corporations (for instance, for taxes, and telecommunication or energy costs). Production quotas are applied at the farm level for sugar beet.
Deficiency payments, are provided equally "premium payments" for products considered to be in short domestic supply. These payments are potentially directed to producers of 17 dissimilar agricultural products.six The list of products actually supported is determined separately in 945 basins according to which are the most suitable ecological and economical crops with high yield and quality.
Payments based on area are provided under several different rationales. Hazelnut producers receive payments based on area of production. Farmers can also receive expanse payments for producing fodder crops or certified saplings, organic farming, using skilful agronomical practices, using certified seeds, and for the rehabilitation of olive groves. Each farmer registered under the National Farmer Registration System (NFRS) receives a and then-called "diesel payment" and a "fertiliser payment" separately based on current area of production.
Back up for soil testing and analyses that are a prerequisite for receiving fertiliser payments was re-introduced in 2017, and is primarily intended to aid authorised laboratories. The use of organic and organomineral fertilisers (a hybrid type of fertiliser produced by blending organic and chemical raw materials) is supported to reduce the use of chemical fertilisers, improve the construction of the soil, increment its productivity and water holding capacity. Farmers can also receive payments to improve beast breeds and agricultural output capacity (east.g. field levelling, drainage, soil improvement and protection and country consolidation).
Farmers and agricultural enterprises can do good from interest charge per unit concessions and concessional loans offered past the Ziraat Bank (TCZB) and Agricultural Credit Co-operatives (ACC). Interest rate concessions vary by type of agronomical functioning (livestock convenance, irrigation, organic agriculture and users of practiced farming practices).
A number of regulations aim to command water and soil pollution and provide protection to wetlands. Land conservation payments are designed to maintain country quality and ensure sustainability of natural resources in agricultural lands. The government plays a major role in providing infrastructure investment, especially for irrigation, including inside the South-Eastern Anatolia and Konya Plainly Projects.
The Action Plan for the Program on Enhancing Efficiency of Water Use in Agriculture, introduced in 2015, prioritises modernising irrigation infrastructure, extending h2o saving practice for agricultural producers through preparation and extension programmes, reducing agricultural h2o pollution, revising back up policies based on water scarcity and improving the governance of water policies. The programme aims to decrease the use of underground water and increase the utilise of water-saving irrigation technologies.
Land Irrigation Guidelines were prepared and used in watershed-calibration studies to determine the water needs inside each watershed and to establish the bowl water upkeep. The planning, design and operational phases of irrigation project are determined based on, climate, soil and topography features, besides as the current water potential in the basin and expected water consumption by farmers.
The 2014-twenty National Rural Development Strategy was adopted in 2014 to deliver the EU Instrument for Pre-Accession Assistance Rural Evolution (IPARD-II).7 The initial budget for this was EUR 813 million (USD 901 million) just was after reduced by the EU Committee to EUR 615.5 million (USD 682 million). As of the finish of 2019, EUR 129.2 million has been granted to 3 792 projects under IPARD-II. These rural development projects require co-financing of beneficiaries, with the aim of mobilising private-sector resources. Public investments to ameliorate agricultural infrastructure are targeted to boosting agricultural production and increasing the competitiveness of the sector. The MoAF too increased funding for Information technology projects, to improve data collection and the monitoring network and its efficient use, as well every bit to develop traceability in the sector.
Domestic policy developments in 2019-20
Turkey'south National Strategy Document and Action Program on Prevention, Reduction and Management of Food Losses and Waste matter were prepared in collaboration with the FAO in 2019 equally part of a new global initiative called the "Save Nutrient" entrada in line with SDG 12.iii. This campaign aims to reduce food losses and waste past raising public awareness both nationally and internationally and disseminating good practices to avoid food waste matter. During Turkey's G20 Presidency in 2015 a technical platform on the measurement and reduction of food loss and waste was established at the FAO together with IFPRI.
In order to encourage the sustainable use of forested areas and to have action related to SDG xiii on Climate Activeness and SDG 15 on Life on Land, the MoAF organised a tree planting campaign named "Breath for the Future" on eleven November 2019. As part of this campaign, virtually thirteen meg saplings were planted in merely one day in all parts of Turkey.
A coming together of the Agriculture and Forestry Council was held in Nov 2019. This coming together brought together stakeholders in the agriculture and forestry sectors to develop plans roofing the adjacent 25 years. Council actions were gathered under viii main headings: i) Agricultural Production and Supply Security, 2) Food Safe, iii) Rural Development and Marketing, four) Fisheries and Aquaculture, 5) Soil and Water Resource, vi) Biological Diversity and Climate Change, vii) Forest, and 8) Institutional Capacity. Within the telescopic of the Council's coming together, 38 actions plans were established.
Coverage of support to agricultural insurance has been extended to include more products and types of risks. In 2018, coverage had initially been extended to production losses of barley, rye, oats and triticale and covering risks related to drought, frost, hot winds, estrus waves, excess wet and excessive atmospheric precipitation. It was further extended in 2019 to chickpeas, ruby lentils and green lentils. In 2019, more than ii million agricultural insurance policies were issued, with the government spending Try 2.v billion (USD 424 million) to reduce premiums.
Within the telescopic of Combating Agricultural Drought, the "Turkey Agricultural Drought Strategy and Activity Program", 2018-22, was published. The main pillars of the Activity Programme are developing a capable institutional structure, taking a holistic and comprehensive perspective, and making the agricultural sector more resilient to drought. Activities in the Action Plan are grouped under five headings: i) drought risk estimation and crunch management, ii) ensuring a sustainable water supply, 3) constructive management of agronomical h2o need, iv) increasing support to R&D activities, training and extension services, and v) institutional chapters building.
Trade policy developments in 2019-20
The average rate of customs duties applied in 2019 for basic agricultural products outside the Community Union Common External Tariff was 57.85%. Customs duties were reduced on cocoa shells, husks, skins and other cocoa waste. Customs duties on glucose syrup (other) and palm kernel oil used for coffee foam product were also reduced.
In 2019, Turkey put into forcefulness its Gratuitous Trade Understanding (FTA) with Kosovo and FTA revision protocols with Serbia. Turkey also updated its FTA with Bosnia-Herzegovina and Montenegro in 2019. FTA negotiations are actively ongoing with five countries: Ukraine, Japan, Thailand, Indonesia and Somalia.
Notes
← ane. https://www.tarimorman.gov.tr/Duyuru/1151/Bitkisel-Uretim-Destekleri-Basvuru-Sureleri-Uzatilmistir.
← 2. https://dosya.tarimorman.gov.tr/app/tr-TR/App/Download/TarimBulut/eb3140cb-bf55-4dd7-93fa-c60342294675.
← 3. https://world wide web.aa.com.tr/en/economic system/turkey-subjects-lemon-to-export-control-among-covid-19/1795208.
← iv. https://oryza.com/49865/turkey-cuts-community-duty-paddy-rice-imports.
← 5. https://www.tarimorman.gov.tr/Haber/4452/Tarim-Iscilerine-Koronavirus-Tedbiri.
← 6. Sunflower, rapeseed, maize, cotton, soybeans, wheat, barley, oats, rye, triticale, safflower, olive oil, paddy, dry beans, chickpeas, lentils, fresh tea.
← vii. IPARD is the Rural Development component of the Instrument for Pre-admission Assist (IPA), created by the European union to back up candidate and potential candidate countries. IPARD aims to support adaptation preparations and policy evolution for the implementation and management of the Common agricultural policy of the eu, Rural Development Policy and related policies of the European Marriage.
Metadata, Legal and Rights
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https://doi.org/ten.1787/928181a8-en
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