Assessing Impact of Government Policies On The Competitiveness of Turkish Corn Production

With this study, it is aimed to determine the competitiveness of corn production in terms of profitability and to measure the effects of agricultural policies in Turkey on regional basis. Aegean, Mediterranean and Southeastern Anatolia Regions are selected as a field of research area because the agricultural enterprises in these regions have experienced due to intensive corn production. Firstly, agricultural policies applied for corn production in Turkey is examined. Policy transfers, resource utilization, costs, private and social profits resulting from these applications are also presented with Policy Analysis Matrix (PAM). This method is widely used in the world in the analysis of the impact of policies on production economics and it is a very effective method. PAM is mainly based on benefit-cost analysis. PAM also may be used to generate scenarios for comparison of alternative policies. Besides the secondary data analysis of the effects of policy, the data obtained through face to face interviews with 256 producers selected through stratified sampling method in Aegean, Mediterranean and Southeastern Anatolia Regions. The results show that corn production in Turkey has a comparatively disadvantage stemming mainly from input costs and output prices higher than in the world. The corn productivity is high but high prices of inputs negatively affect Turkish corn producers. Under the existing policy circumstances, the producers earn profit. Farmers would start earning much higher revenues if the tax on fuel will be lowered which in turn decrease production costs. As a result sector’s competitiveness and comparative advantage is also significantly improved