Mehmet Onur BINGOL
Sukru Ferat KORKMAZ
Agricultural Subsidies on comparative Turkey-EU relations
divided into six parts.
These topics are:
-Common Agricultural Policy
-Comparison of some of the EU member states and Turkey
-Turkey’s Current Situation According to acquis
Turkey applied for membership in the European Communities in
11 July 1959.
Ankara (Association) Agreement signed on 12 September 1963.
Another development is additional protocol.
The country was accepted as candidate to the European Union
(EU) membership in 1999.
On the specific chapter of agriculture; negotiations had started
but the issue of agriculture and rural development is very hard to
The screening started on 5 December 2005 and screening was
completed on 26 January 2006 but this chapter had frozen at that
COMMON AGRICULTURAL POLICY
Before the Single European Act, all European countries
managed their agricultural markets with complex devices.So
a common market for agriculture needed.
Firstly financial support was established and the European
Council agreed in 1998.
So The Common Agricultural Policy (CAP) is a system
which includes European Union agricultural subsidies and
The CAP has a history of successful change which was very
successful in meeting its objective of moving the EU
towards self-sufficiency from the 1980s onwards.
THE CAP OF TODAY
The CAP had been reformed. The policy of the CAP is
more different than past today and it was evolved than
when it was created by the Treaty of Rome (1957).
Many important changes to the CAP were already made in
the 1980s but, above all at the beginning of the 1990s.
Critics argue that too few Europeans benefit. Only 5.4% of
EU's population works on farms, and the farming sector is
responsible for 1.6% of the GDP of the EU(2005).
The European Commission is discussing new reform of the
CAP now which includes the next financial perspectives
packages for 2014.
THE RELATIONSHİP BETWEEN TURKEY
AND THE CAP
Turkey often engaged in very low value added forms of
The Agriculture Reform Implantation Project (ARIP) of
2001-2005 represents a new direction in agricultural policy
and aims to bring Turkey more in line with the EU.
The 2007-2008 world food price crisis has renewed calls
for farm subsidies to be removed in light of evidence that
had bad effect for the relationship between Turkey and
Finally Turkey should take some measures for accommodate
their policy to the CAP.
An agricultural subsidy is a governmental subsidy paid to
farmers and agribusinesses to supplement their income,
manage the supply of agricultural commodities, and influence
the cost and supply of such commodities. Examples of such
commodities include wheat, feed grains (grain used as fodder,
such as maize or corn, sorghum, barley, and oats), cotton, milk,
rice, peanuts, sugar, tobacco, and oil see.
European Union countries can be benefited from these
For rural development and inadequate agricultural regions.
To avoid unequal level of development .
And to recover the weakened agricultural sectors.
Also, the agricultural expenditures can be generally
financed by two funds.
European Agricultural Guarantee Fund (EAGF)
European Agricultural Fund for Rural Development
Direct payments to the farmers
Therefore, can regulate the agricultural market
In such ways;
Finances the rural development programmes
For all Member States
Besides these institutions which are counted
Maybe the most important one is Integrated
and Control System (IACS).
Covering all direct payments to the farmers
Single Payment Scheme (SPS)
And applies to a large extent to the new MS
With having single area payment scheme (SAPS)
Which are based on;
Number of hectares or animals
Held by the farmer.
COMPARISON OF SOME OF THE EU
MEMBER STATES AND TURKEY
In this part, our focus point is the examining some of the
major European Countries in the case of agricultural subsidies
such as France, Italy,Spain and Turkey.
France has been one of the most dominant agricultural
centers of Europe for centuries.
With about 730,000 farms, approximately 7 percent of the
workforce is employed in agriculture or similar sectors such
as fishing or forestry.
In 2008 France received €9,940 Million in EU farm
subsidies or approximately €18,862 per farm.
DISTRIBUTION OF FRANCE’S SUBSIDIES
In that context, France is the most significant country within
the borders of EU.
France has an efficient agricultural sector.
France, can make more contribution to CAP
In exchange of that, their agricultural sectors can receive
and benefited from agricultural subsidies.
AGRICULTURAL SUBSIDIES IN ITALY
The CAP was not very successful in Italy in its initial stages because
subsidies did not cover several traditional Mediterranean products.
The agricultural sector employed only 5.5 percent of the working
population in 1999 and contributed only 2.5 percent of the GDP in
2000, with an output of over US$36 billion.
This EU policy ensures that subsidies and incentives are offered in
order to sustain prices and guarantee a certain level of income to
In addition, Italian agriculture is suffering from changes in the climate
and very poor management of the land.
With only 5 percent of the land under cultivation, Italy is not self-
sufficient in agricultural products, yet it enjoys an abundance of
AGRICULTURAL SUBSIDIES IN SPAIN
Spanish agriculture has traditionally been most affected by
the level of rainfall, since drought is always a threat.
In 1999 a EU reform of the Common Agricultural Policy
was approved as part of the «Agenda2000» in Spain.
The abundance of Spain's agricultural resources guarantees
As of 2005 France is also a net contributor and the more
agriculture-focused Spain, Greece and Portugal are the
Spain took € 4242 Million agricultural overall subsidies in
1995, € 4895 Million in 2000 and € 6493 million in 2005
Support for agriculture and rural areas can be made in different ways;
Agricultural investment incentives,aid in the area of foreign trade and
protection for importation,
Incentive premium for milk,
Restrictions and support payments for plantations,
Soil improvement operations,
Price supports for cooperatives, and
Also agricultural organizations.
Direct Income Support System
With this system;
Farmers, who have 1-199 dunam land,
Can receive monetary assistance,
In the form of donation
IN OECD COUNTRIES;
Farmers receive monetary support in the level of 36
dolar ( per land measurement of a thousand square
In Turkey, prescribed support to farmers in the level
of 5 dollars with Direct Income Support System.
ECONOMIC CRISIS AND ITS REFLECTIONS
Most recently, despite the continued impacts of the global
economic crisis, EU continue to distribute the agricultural
subsidies in accordance with crucial needs to some
countries such as Greece, the Netherlands and Denmark.
For instance, EU officials doled out approximately $ 70
million in the year of 2009. Moreover, since 2008, one of the
biggest subsidies was $ 223 million which was given to the
French sugar conglomerate “Teroes”, the aim was to aid the
sugar industry. On account of the global economic crisis,
this recovery was seen as a necessity (Times, 2010) .
CURRENT SITUATION ON RELATIONSHIP
BETWEEN TURKEY AND EUROPEAN UNION
ACCORDING TO ACQUIS COMMUNAUTAIRE
Turkey's European Union’s acquis program was published on
April 17, 2007.
8 Sub-committee was established by EU-Turkey Association
Council on 11 April 2000 for examine Turkey’s
harmonization to acquis communautaire.
In this context, Turkey create new structures for
harmonization to acquis in some areas.
Also define set criteria about 11 chapters , such as Free
movement of goods, Customs Union, Competition Policy
Agriculture and Rural Development.
In order to conclude this presentation, we again will
mention the “Progress Report” and Turkey’s place in the
In this respect, “there are any development in the field of
quality policy and there was some progress in the field of
The negotiations had started but the issue of agriculture
and rural development is very hard to adopt.
In conclusion, the alignment with the acquis remains limited.
In addition to this, most administrative structures which are
related to the CAP have not yet been established.