Subsidies and subsidy-like practices in forestry sector (Example Of Artvin Regional Directorate of Forestry)

Artvin Regional Directorate of Forestry earn the major part of income from the industrial and fuel wood selling. The total income of the forest enterprises decrease as a result of placing to some public enterprises (TEDAŞ, SEKA, TELEKOM, private particle board and paper factories) and discounted sales to forest villagers and forest village cooperatives. Due to such subsidies provided by government, forest enterprises make a loss at the end of operating cycle.The aim of this study is to determine how the subsidies and similar implementations effect the year-end balance sheet. In this context, the profit-loss statement in 2006-2010 period is analyzed hypothetically as all the sales are market sales.In conclusion, under the assumption of all sales were as market sales in Artvin RDF, it is seen that cost coverage ratio of income would increase from 58% to 72%. Between 2006-2010 shares of the subsidy-like practices in overall sales revenue are % 8,43 for industrial wood and % 18,29 for fuel wood. Also, it is seen that subsidy-like sales are % 10,88 for industrial wood and % 86,69 for fuel wood in overall sales revenues.Revenue loss of forestry sector and negative effects of subsidies on balance sheets can be avoided by financing subsidies from state treasury. Also revenue loss of RDF can be avoided by averting illegal utilization due to efficient control.Key Words: Subsidy, selling methods, operating revenues, forest villager