Impact asseement analysis of policies toward olive oil production- The case of Izmir

Depending on the periodicity caused by the structural characteristics of the olive tree, the productivity changes from year to year, which affects the producers' income. For this reason, olive cultivation is supported by various policy tools. With this study, it is aimed to determine the degree of impact of olive oil policies on producer decisions and to estimate supply functions by taking into consideration the effect of different support methods in olive oil. The data were obtained from face-to-face interviews with 151 producers producing olive for oil in İzmir province. It was determined, as the first preference of producers of olive oil production in the research area is "difference payment support". Supply models were estimated with Tobit model considering the potential response to product prices in various scenarios. Considering unrestricted flexibility based on all data, when the price of olive oil is increased by 10%, it is expected that olive oil supply will increase, whereas if the oil production area is increased by 10%, it is expected to increase less. Considering unrestricted flexibility, it is expected that supply of olive oil will increase by 3.49%, in the case of direct income support, 5.51% according to the absence of support, and increase of olive oil supply by 3.83% according to the absence of support for premium support. According to producers' willingness to accept regarding the results of preferences directed to them, they preferred to apply organic farming support of 2.7 TL / kg, direct income support of 2.5 TL / kg, input support of 1.13 TL / kg and premium support of 0.94 TL / kg. Keywords: Olive oil, Subsidy Policies, Supply Analysis, Analytic Hierarchy Process, Tobit, Best-Worst, Choice experiment.