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Evaluation of Agricultural Policy Reforms in Turkey

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Turkey is an important producer and exporter of agricultural commodities on world markets and is estimated to be the world’s 7th-largest agricultural producer. Although the economic importance of agricultural sector relative to the industrial and service sectors has been declining, agriculture still remains a key part of Turkey’s society, employing about one quarter of the workforce and generating most of income and employment in rural areas.

Agricultural 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 the 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. This study also discusses several emerging issues and challenges for Turkish agricultural policies, and offers key policy recommendations.

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Overview of the Macro-economy and the Agricultural Sector in Turkey

This chapter provides a brief overview of the agricultural situation in Turkey since the mid-1980s, with particular emphasis on the nature of the structural impediments faced by the agricultural sector. It discusses trends in: the socio-economic role of agriculture in the overall economy; changes in farm structures (e.g. farm holdings, sizes, types and human capital); the value of production, input and output prices, productivity and agricultural incomes; agricultural trade (e.g. trends in agricultural exports, imports and the agricultural trade balance); and the relative economic importance and structure of the agri-food sector. As trends in agricultural policy in Turkey are closely linked to the evolution of the economy as a whole, and cannot be assessed in isolation from the macro-economic context, a brief discussion of key macro-economic aspects, such as fiscal deficits, inflation and exchange-rate changes, is also presented.

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