TURKEY

 

The agricultural policy inTurkey has been characterized by ad hoc changes in policy under an environment of high inflation.  Agricultural policy has been movingfrom market price support and input payments to income support payments. Aneffort to converge agricultural policy with that of the European Union has beenaccelerated. Reductions in output and input linked support have been offset byan increase in Direct Income Support payments.  These payments are based on a flat rate per hectare.

 

Corn and Sorghum

        Different tariff ratesfor different types of corn.

        Premium payments forcorn are linked to production and are made on a per kilogram basis dependingupon presentation of sales documents.

        Diesel and chemicalfertilizer support for corn were established at $18.83/ha ($7.62/ac) for dieselfuel and $12.51/ha ($5.06/ac) for chemical fertilizer in 2004.

        Although there is noreport of sorghum production, exports, or imports, an import tariff of 130% wasin place in 2004.

 

Cotton

        The support mechanismsfor the cotton sector are in three categories: (1) premium support, (2) directsupport, and (3) diesel and chemical fertilizer support. The premium support isa payment based on production, given directly to the farmer per kilogram ofunginned cotton production, which was approximately $0.17/kg for the producerusing certified seeds and about $0.14 /kg for producers using non-certifiedseed in 2005 ($0.24/lb and $0.18/lb lint equivalent).

  The diesel and chemicalfertilizer support payments are made on per hectare basis. For cotton, thesepayments were $35.43/ha for diesel fuel support ($14.34/ac) and $23.57/ha forchemical fertilizer support in 2005 ($9.54/ac).

 

Rice

  Since 2003, Turkey hasapplied a TRQ on rice imports. Currently there is a dispute between Turkey andthe U.S., in which the U.S. claims that Turkey has required licenses in orderto import rice both at the in-quota and over-quota rates, which is a non-transparent and discretionary process.

        The premium support forrice in 2005 was 0.017 euros/kg (about $1/cwt).

 

Soybeans

        Production bonuses arepaid on soybeans as well in order to support local production.  In 2005, the soybean bonus was TL240,000/kg ($5/bu).

        The import tariff rateon soybeans is 10%. 

 

Sugar

        Turkey has a productionquota for sugar to discourage production.

        Sugar produced underthe quota receives a procurement price announced by the state-owned Turkishsugar corporation.

        The import tariff forsugar was 135% in 2006 from all origins other than those countries with whichTurkey has trade agreements.

 

Wheat

        The support premiumestablished for wheat was 0.017 euros/kg (approximately $0.60/bu) in 2005.

        Turkey has an importquota of approximately 200,000 MT (7.3 million bu) for milling wheat and100,000 MT (3.7 million bu) for durum wheat. However, wheat imported from theEU countries has zero duty.

        For 2004 the diesel andchemical fertilizer supports for wheat were $18.83/ha ($7.62/ac) and $12.51/ha($5.06/ac).