THE EFFECTS OF AGRICULTURAL SUPPORT PRACTICES ON PRODUCT INCOME, PRODUCTION COST AND GROSS PROFIT VALUE

Abstract

The agricultural sector is supported worldwide with different methods and budget sizes depending on the development levels of the countries. According to OECD data, 53 countries, which have a significant share in the world economy, contributed a total of 705 billion USD (€620 billion) to the agricultural sector in the period 2016-18. Turkey 2016-2018 period, the average value of agricultural production is 57 billion USD, which is used as an indicator of agricultural support UDT / PSA level is 12.3 billion USD. Turkey is 15.01% of the PSE in 2018, the OECD average of 19.22% and 11.43% in the US and the EU stood at 19.54%. In the EU, 77% of approximately €56 Billion agricultural support is allocated to direct payments, 20% to rural development expenditures and 3% to market measures. In the USA, within the scope of the Agriculture Law, 6% of the budget close to 1 Trillion USD was spent on agricultural product supports in the period of 2014-2020. The amount of resources allocated to the agricultural sector in 2019 stood at 26.5 billion TL in Turkey. In the study conducted, the support given for increasing agricultural production in the production value of the products; 36.27% in oily sunflower, 27.49% in canola and 5.69% in paddy. This increase in the production value of the products has significantly increased the gross profit values of the product as well as the decrease in product cost. In the research area, the rate of increase in the gross profit values of agricultural supports calculated as 114.98% for canola, 101.77% for oil sunflower and 11.43% for paddy. It has been determined that agricultural supports can reduce the product cost by 34.25% in sunflower for oil, 28.74% in canola and 8.15% in paddy in the enterprises examined within the scope of the research. This study showed that enterprises producing oily sunflower, paddy and canola can continue production thanks to the income obtained through agricultural support practices. In order for enterprises across the country to continue agricultural production, the budget based on agricultural support practices should be increased. It is of particular importance that the agricultural support unit prices are determined using more realistic methods without affecting market prices.