Subsidies to agricultural companies in the European Union

The thesis named `Subsidies to agricultural companies in the European Union? is studied to explain Turkish agricultural sector?s problems, sector?s employment situation, competitiveness and its ratio in the general economy and also it is aimed to explain the methods to increase the competitiveness level in the changing and globalizing world.Agricultural oriented population had been inherited to Turkis Republic from the Ottoman Empire. According to the reports in the year of 1927; more than 80% of the population had been working in the agriculture sector. When we check the same ratio in the year of 2000, the population ratio had declined but the agriculture sector in GDP (general domestic product) was 8,6%. In order to save the Turkish agriculture, it is needed to have power to compete with the world?s agricultural sector. In order to do this, we need to compare our sector with the European Union?s sector and we need to define our disadvantages.When we compare them, we realise that Turkish agricultural sector has lots of disadvantages. The main disadvantages are the field owned by each farmer, technolgy used, product price policies, and the most important one, financial support. In the European Union the average field measurement for per farmer is 2,8 times more than Turkish average field measurement for per farmer. This is one of the most important reasons that the farmers in European Union are more productive. In the European Union the budget amount reserved for agricultural grants and supports is 55,9 billion euro, which is 38% of general budget. This amount is a typical sample which shows us the importance given to agricultural sector in the European Union. These subsidies can be used by some various funds. Some of them are; European Agricultural Guidance Guarantee Fund, European Regional Development Fund, European Social Fund, European Adaptation Fund. The agricultural organisations and companies in Turkey have right to use these funds by preparing appropriate projects. By the help of these supports, it is aimed to increase the Turkish agricultural productivity and competitiveness in order to adapt to European Union agricultural sector level. All agricultural companies and govermental associations can use these subsidies which have 50% grant support. But in order to get these subsidies they have to pass the subsidy mechanism stages and they have to choose the appropriate project. Some organizations related with these subsidy program in Turkey are; State Planning Organization (SPO), Delegation of the European Union to Turkey (DEUT), Central Finance and Contracts Unit (CFCU).The last part of the thesis is placed as an evaluation part and studied through this subject. In this section; it is explained one flour factory?s application to subsidy in Samsun and its application stages detailed. In order to get these grants, the most important criteria are; company?s finance position, the aim of the project, project?s social contribution to the region, grant?s contribution to company?s competitiveness level, the result of capacity increasing to unemployment level in that region.As a result this company achieved to increase production capacity and competitiveness level so that the need to raw material increased. Farmers increased the wheat planting for good prices and more workers in the field and in the factory were employed. Sales turnover of the company also increased.