The impact of agricultural support policies on agricultural production

The agricultural sector is of great importance for the development of national economies as well as meeting the food needs of the society. The sensitivity of agricultural activities to natural conditions and seasonality negatively affects the sustainability of production. The aim of this study is to evaluate the relationship between support payments, which are assumed to affect agricultural production, and other variables and agricultural production by analysing agricultural loans, agricultural fixed capital investments and agricultural employment. In the study, the effects of agricultural support policies and other variables on agricultural production in Türkiye are analysed by ARDL bounds test method using a 30-year data set covering the period 1994-2023. The results of the analysis reveal that support payments, agricultural loans and fixed capital investments have positive effects on agricultural production in the long run. However, it is observed that the long-term positive effect of support payments on production is more limited compared to other variables and that these payments have a negative effect on production in the short run. There is no statistically significant relationship between agricultural employment and production. In addition to that the production imbalance caused by the shocks experienced in the agricultural sector in the short run quickly loses its effect in the long run. In conclusion, agricultural support policies should be reshaped in line with strategic goals and objectives with an inclusive approach to the adversities experienced in the agricultural sector, and the effectiveness and efficiency of the policies implemented should be monitored by policy makers at certain intervals. Keywords: Agricultural Support Policies, ARDL Bound Test, Agricultural Sector, Agricultural Loans, Agricultural Fixed Capital Investments, Agricultural Employment