Study of the effect of vegetal production subsidies on sunflower and wheat cultivation areas; Example of Tokat province Zile district

The agricultural sector, which is the main source of food, is increasing its importance in the world and Turkey with factors such as increasing population and drought especially in recent years. In order to ensure the sustainability of the agricultural sector and its stakeholders, subsidy policies are implemented in all countries. It is an important issue for all economies to analyze the effectiveness of agricultural subsidy policies and to shape them in a way that will provide the most benefit. The agricultural sector in Turkey is also supported by various means. In this study, the effect of plant production subsidies on the cultivation areas of sunflower and wheat products, which are strategically important for Turkey, was investigated by panel data analysis. In the panel data analysis applied in the study, official figures from the Ministry of Agriculture and Forestry records between 2014-2019 belonging to the farmers of Zile district of Tokat province were used. According to the results of the analysis, it has been estimated that the most effective subsidy tool in the sunflower cultivation area is premium payment support. On the wheat cultivation area, it was estimated that the most effective subsidy tool was fuel fertilizer subsides. In addition, it has been estimated that the subsidies paid on the sunflower and wheat cultivation areas have a much greater effect than the income to be earned from the sale of the crop.