Research Article
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The Effects of Subsidies on the Profitability of Dairy Cattle Farming in Türkiye

Year 2023, Volume: 26 Issue: 4, 888 - 901, 31.08.2023
https://doi.org/10.18016/ksutarimdoga.vi.1214182

Abstract

The main purpose of this study is to investigate the impact of subsidies on dairy farm profits in Türkiye. To satisfy this objective, the Treatment Effect and Switching Regression models were used. The assessment may conclude that revenue will grow, decline, or remain unchanged. The sample size was determined as 662 by using the number of dairy cattle in the enterprises in 12 provinces and the stratified sampling method. In this study, the status of dairy cattle farms benefiting from subsidies, the socioeconomic factors affecting this level, and the effects of subsidies on the profit of the farms were analyzed. According to the results, 70.1% of dairy farms benefited from livestock subsidies. Moreover, farm size, cultivated area, forage area, lactation period, milk productivity, gross profit, and net profit have positive and statistically significant effects on livestock subsidies. According to the results of the treatment effect model, benefitting from farmers’ support will increase farmers’ revenue and profit. The benefits from livestock subsidies of farmers will increase the gross production value by approximately $8636.4. This is important for the sustainability of agricultural activity. The research findings will provide valuable information for the Ministry of Agriculture, and policymakers.

Supporting Institution

TUBITAK-TOVAG

Project Number

112O824

Thanks

The authors wish to thank TUBITAK-TOVAG (Project no: 112O824) for supporting this research.

References

  • Akbay, C. & Ahmadzai, A.Z. (2020). The factors affecting food security in the eastern region of Afghanistan. KSU Journal of Agriculture and Nature, 23(2), 467-478. DOI:10.18016/ ksutarimdoga.vi.596442
  • Akbay, C. & Akdoğan, F. (2022). Economic analysis of dairy cattle farms in Izmir province of Türkiye. KSU Journal of Agriculture and Nature, 25(3), 598-605. DOI: 10.18016/ksutarimdoga.vi.800409
  • Ağır, H.B. & Akbay, C. (2022). Impact of contract farming on beef cattle farmers' income: A Propensity Score Matching Analysis. Journal of Agriculture and Nature, 26(2), 392-399. DOI:10.18016/ksutarimdoga.vi.896094.
  • Angrist, J.D. (2001). Estimation of limited dependent variable models with dummy endogenous regressors: Simple strategies for empirical practice. Journal of Business and Economic Statistics, 19(1), 2-28.
  • Barnow, B.S., G.G. Cain & Goldberger, A.S. (1980). Issues in the analysis of selectivity bias. In evaluation studies review annual, vol. 5, ed. E.S. Stromsdorfer and G. Farkas, 43-59. Beverly Hills, CA: Sage.
  • Bezlipkina, I., Lansink, A.O. & Oskam A. (2001). Farm firm micro-econometrics modeling: Emrirical evidence from Russian dairy farming. Paper prepared for the Annual meeting of the American Agricultural Economics Association in Chicago (August 5-8).
  • Boz, I., Akbay, C., Bas, S., & Budak, D.B. (2011). Adoption of innovations and best management practices among dairy farmers in the Eastern Mediterranean Region of Turkey. Journal of Animal and Veterinary Advances, 10(2), 251-261. DOI: 10.3923/javaa.2011.251.261
  • Chandel, BS., Lal, P. & Kumari, B. (2019). Livestock production systems, subsidies and its implications: An investigation through review of literature. Indian J Dairy Sci., 72(2), 121-128. DOI:10.33785/IJDS.2019.v72i02.001
  • Dorward, (2015). Heroes, villains and victims: Agricultural subsidies and their impacts on food security and poverty reduction. Handbook on the Globalisation of Agriculture.
  • Erdal, G., Erdal, H. & Çiçek, A. (2020). An analysis of the effects of livestock support policies on breeders: An example of TR83 region in Turkey. Turkish Journal of Agriculture- Food Science and Technology, 8(11), 2378-2387. DOI:https:// doi.org/10.24925/turjaf.v8i11.2378-2387.3676
  • Garrone, M., Emmers, D., Olper, A. & Swinnen, J. (2018). Subsidies and agricultural productivity: CAP payments and labour productivity (convergence) in EU agriculture. LICOS Discussion Paper Series. Discussion Paper 409/2018.
  • Greene, W.H. (2012). Econometric analysis, 7th Edition. New York: Prentice Hall.
  • Hadley, D. (2006). Patterns in technical efficiency and technical change at the farm-level in England and Wales, 1982–2002. Journal of Agricultural Economics, 57, 81-100. https://doi.org/10.1111/j. 1477-9552.2006.00033.x
  • Heckman, J.J., Tobias, & Vytlacil, E. (2003). Simple estimators for treatment parameters in a latent variable frameJ.work. The Review of Economics and Statistics, 85(3), 748-755.
  • Henningsen, A., Kumbhakar, S. & Lien, G. (2011). Econometric analysis of the effects of subsidies on farm production in case of endogenous input quantities. In EAAE 2011 Congress - Change and Uncertainty, Zurich, Switzerland.
  • Isık, HB., Aksoy, A. & Yavuz, F. (2009). Factors affecting dairy farmers' utilization of agricultural supports in Erzurum, Turkey. Scientific Research and Essay, 4 (11), 1236-1242.
  • Karagölge, C., (1996), Tarımsal işletmecilik, tarım işletmelerinin analizi ve planlaması, Atatürk Üniversitesi Ziraat Fakültesi Yayınları no:326, Erzurum.
  • Kasteridis, P.P. & S.T. Yen. (2012). Smoking cessation and body weight: Evidence from the behavioral risk factor surveillance survey. Health Services Research, 47, in press.
  • Kılıç, O., & Eryılmaz, G.A. (2020). Samsun ilinde süt sığırcılığı yapan işletmelerin yapısal özellikleri. Türk Tarım ve Doğa Bilimleri Dergisi, 7(3), 637-645. https://doi.org/10.30910/ turkjans.682932
  • Kıral, T., Kasnakoğlu, H., Tatlıdil, F., Fidan, F. & Gündoğmuş, E. (1999). Tarımsal ürünler için maliyet hesaplama metodolojisi ve veri tabanı rehberi, Tarımsal Ekonomi Araştırma Enstitüsü Yayın No:37, Ankara.
  • Latruffe, E., Bravo-Ureta, B.E., Moreira, V.H., Desjeux, Y. & Dupraz, P. (2011). Productivity and subsidies in European Union countries: An analysis for dairy farms using input distance frontiers. Paper prepared for presentation at the EAAE 2011 Congress Change and Uncertainty, Challenges for Agriculture, Food and Natural Resources, August 30 to September 2, 2011 ETH Zurich, Zurich, Switzerland.
  • Maddala, G.S. (1986). Disequilibrium, self-selection, and switching models. In Handbook of econometrics, vol. 3, ed. Z. Griliches and M.D. Intriligator, 1633–1688. Amsterdam: Elsevier Science Publishers BV. Maddala, G.S. (1999). Limited-dependent and qualitative variables in econometrics. Cambridge, MA: Cambridge University Press.
  • Official Gazette, (2022). Resmi gazete. “http://www.resmigazete.gov.tr/eskiler/2013/05/20130525-3.htm”
  • Rosenbaum, P.R. & D.B. Rubin. 1983. The central role of the propensity score in observational studies for causal effects. Biometrika, 70(1), 41–55.
  • Semerci, A. & Celik, A. (2017). Reflections of animal husbandry subsidies on dairy cattle enterprises: A case study of Hatay Province-Turkey, Journal of Tekirdag Agricultural Faculty, 14(2), 92-100.
  • Terin, M., Ceylan, M., Çiftçi, K. & Yıldırım, I. (2022). Damızlık Sığır Yetiştiricileri Birliğine üye olan ve olmayan süt sığırcılığı işletmelerinin hayvancılık desteklerinden faydalanma durumlarının analizi. Atatürk Üniversitesi Ziraat Fakültesi Dergisi , 53 (1), 42-50. DOI: 10.54614/AUAF.2022.960031
  • Trnkova, G. & Mala, Z. & Vasilenko, A. (2012). Analysis of the effects of subsidies on the economic behavior of agricultural businesses focusing on animal production, AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, 4, 1-12.
  • TÜİK, (2022). Hayvancılık istatistikleri. Türkiye İstatistik Kurumu (www. Tuik.gov.tr)
  • Vozarova, I.K. & Kotulic R. 2016. Quantification of the effect of subsidies on the production performance of the Slovak agriculture. Procedia Economics and Finance, 39, 298-304. https://doi.org/10.1016/S2212-5671(16)30327-6
  • WHO, (2022). The nutrition challenge and food system solutions. World Health organization. https://apps.who.int/iris/bitstream/handle/10665/277440/WHO-NMH-NHD-18.10-eng.pdf
  • Yamane, T. (2001). Temel örnekleme yöntemleri. Çevirenler: Alptekin Esin, Celal Aydın, M. Akif Bakır, Esen Gürbüzsel. Literatür Yayıncılık, İstanbul
  • Zhu, X., Demeter, R.M. & Lansink, A.O. (2008). Competiveness of dairy farms in three countries: the role of CAP subsidies. 12. Congress of the European Association of Agricultural Economists-EAAE, 2008.
  • Zhu, X., Demeter, R.M. & Oude Lansink, A. (2012). Technical efficiency and productivity differentials of dairy farms in three EU countries: The role of CAP subsidies. Agricultural Economics Review, 13 (1), 66-92. DOI: 10.22004/ag.econ.253496

Türkiye'de Süt Sığırcılığında Uygulanan Desteklerin İşletme Kârlılığı Üzerine Olan Etkileri

Year 2023, Volume: 26 Issue: 4, 888 - 901, 31.08.2023
https://doi.org/10.18016/ksutarimdoga.vi.1214182

Abstract

Bu çalışmanın amacı Türkiye’de süt sığırcılığı yapan tarım işletmelerinde desteklemelerin üretici kârlılığı üzerine olası etkilerini ortaya koyaktır. Araştırmada yöntem olarak Muamele Etkileri ve Switching Regresyon Modelleri kullanılmıştır. Süt Sığırcılığında teşviklerin kullanılmasının işletme kârlılığını arttıracağı, azaltacağı veya değiştirmeyeceğinden yola çıkılmıştır. Bu amaçla 12 ildeki işletmelerde bulunan süt sığırı sayısı ve tabakalı örnekleme yöntemi kullanılarak önek büyüklüğü 662 olarak belirlenmiştir. İşletmelerin desteklerden yararlanma durumları, bu düzeye etki eden sosyoekonomik faktörler ve desteklerin işletme kârı üzerine olan etkileri analiz edilmiştir. Araştırma sonuçlarına göre, Anket yapılan işletmelerin %70,1’i süt sığırcılığında uygulanan desteklerden yararlanmaktadır. İşletme genişliği, toplam ekim alanı, yem bitkisi ekim alanı, laktasyon süresi, süt verimliliği, brüt kar ve net kar ile işletmelerin süt sığırcılığı desteklerinden yararlanmaları arasında pozitif ve istatistikî olarak önemli bir ilişki vardır. İşletmelerin desteklerden yararlanma durumu gayrisafi üretim değerini yararlanmadığı duruma göre yaklaşık 8636.4 $ civarında artıracaktır. Bu, tarımsal faaliyetlerin sürdürülebilirliği için önemlidir. Araştırma bulguları Tarım Bakanlığı ve politika yapıcılar için değerli bilgiler sağlayacaktır.

Project Number

112O824

References

  • Akbay, C. & Ahmadzai, A.Z. (2020). The factors affecting food security in the eastern region of Afghanistan. KSU Journal of Agriculture and Nature, 23(2), 467-478. DOI:10.18016/ ksutarimdoga.vi.596442
  • Akbay, C. & Akdoğan, F. (2022). Economic analysis of dairy cattle farms in Izmir province of Türkiye. KSU Journal of Agriculture and Nature, 25(3), 598-605. DOI: 10.18016/ksutarimdoga.vi.800409
  • Ağır, H.B. & Akbay, C. (2022). Impact of contract farming on beef cattle farmers' income: A Propensity Score Matching Analysis. Journal of Agriculture and Nature, 26(2), 392-399. DOI:10.18016/ksutarimdoga.vi.896094.
  • Angrist, J.D. (2001). Estimation of limited dependent variable models with dummy endogenous regressors: Simple strategies for empirical practice. Journal of Business and Economic Statistics, 19(1), 2-28.
  • Barnow, B.S., G.G. Cain & Goldberger, A.S. (1980). Issues in the analysis of selectivity bias. In evaluation studies review annual, vol. 5, ed. E.S. Stromsdorfer and G. Farkas, 43-59. Beverly Hills, CA: Sage.
  • Bezlipkina, I., Lansink, A.O. & Oskam A. (2001). Farm firm micro-econometrics modeling: Emrirical evidence from Russian dairy farming. Paper prepared for the Annual meeting of the American Agricultural Economics Association in Chicago (August 5-8).
  • Boz, I., Akbay, C., Bas, S., & Budak, D.B. (2011). Adoption of innovations and best management practices among dairy farmers in the Eastern Mediterranean Region of Turkey. Journal of Animal and Veterinary Advances, 10(2), 251-261. DOI: 10.3923/javaa.2011.251.261
  • Chandel, BS., Lal, P. & Kumari, B. (2019). Livestock production systems, subsidies and its implications: An investigation through review of literature. Indian J Dairy Sci., 72(2), 121-128. DOI:10.33785/IJDS.2019.v72i02.001
  • Dorward, (2015). Heroes, villains and victims: Agricultural subsidies and their impacts on food security and poverty reduction. Handbook on the Globalisation of Agriculture.
  • Erdal, G., Erdal, H. & Çiçek, A. (2020). An analysis of the effects of livestock support policies on breeders: An example of TR83 region in Turkey. Turkish Journal of Agriculture- Food Science and Technology, 8(11), 2378-2387. DOI:https:// doi.org/10.24925/turjaf.v8i11.2378-2387.3676
  • Garrone, M., Emmers, D., Olper, A. & Swinnen, J. (2018). Subsidies and agricultural productivity: CAP payments and labour productivity (convergence) in EU agriculture. LICOS Discussion Paper Series. Discussion Paper 409/2018.
  • Greene, W.H. (2012). Econometric analysis, 7th Edition. New York: Prentice Hall.
  • Hadley, D. (2006). Patterns in technical efficiency and technical change at the farm-level in England and Wales, 1982–2002. Journal of Agricultural Economics, 57, 81-100. https://doi.org/10.1111/j. 1477-9552.2006.00033.x
  • Heckman, J.J., Tobias, & Vytlacil, E. (2003). Simple estimators for treatment parameters in a latent variable frameJ.work. The Review of Economics and Statistics, 85(3), 748-755.
  • Henningsen, A., Kumbhakar, S. & Lien, G. (2011). Econometric analysis of the effects of subsidies on farm production in case of endogenous input quantities. In EAAE 2011 Congress - Change and Uncertainty, Zurich, Switzerland.
  • Isık, HB., Aksoy, A. & Yavuz, F. (2009). Factors affecting dairy farmers' utilization of agricultural supports in Erzurum, Turkey. Scientific Research and Essay, 4 (11), 1236-1242.
  • Karagölge, C., (1996), Tarımsal işletmecilik, tarım işletmelerinin analizi ve planlaması, Atatürk Üniversitesi Ziraat Fakültesi Yayınları no:326, Erzurum.
  • Kasteridis, P.P. & S.T. Yen. (2012). Smoking cessation and body weight: Evidence from the behavioral risk factor surveillance survey. Health Services Research, 47, in press.
  • Kılıç, O., & Eryılmaz, G.A. (2020). Samsun ilinde süt sığırcılığı yapan işletmelerin yapısal özellikleri. Türk Tarım ve Doğa Bilimleri Dergisi, 7(3), 637-645. https://doi.org/10.30910/ turkjans.682932
  • Kıral, T., Kasnakoğlu, H., Tatlıdil, F., Fidan, F. & Gündoğmuş, E. (1999). Tarımsal ürünler için maliyet hesaplama metodolojisi ve veri tabanı rehberi, Tarımsal Ekonomi Araştırma Enstitüsü Yayın No:37, Ankara.
  • Latruffe, E., Bravo-Ureta, B.E., Moreira, V.H., Desjeux, Y. & Dupraz, P. (2011). Productivity and subsidies in European Union countries: An analysis for dairy farms using input distance frontiers. Paper prepared for presentation at the EAAE 2011 Congress Change and Uncertainty, Challenges for Agriculture, Food and Natural Resources, August 30 to September 2, 2011 ETH Zurich, Zurich, Switzerland.
  • Maddala, G.S. (1986). Disequilibrium, self-selection, and switching models. In Handbook of econometrics, vol. 3, ed. Z. Griliches and M.D. Intriligator, 1633–1688. Amsterdam: Elsevier Science Publishers BV. Maddala, G.S. (1999). Limited-dependent and qualitative variables in econometrics. Cambridge, MA: Cambridge University Press.
  • Official Gazette, (2022). Resmi gazete. “http://www.resmigazete.gov.tr/eskiler/2013/05/20130525-3.htm”
  • Rosenbaum, P.R. & D.B. Rubin. 1983. The central role of the propensity score in observational studies for causal effects. Biometrika, 70(1), 41–55.
  • Semerci, A. & Celik, A. (2017). Reflections of animal husbandry subsidies on dairy cattle enterprises: A case study of Hatay Province-Turkey, Journal of Tekirdag Agricultural Faculty, 14(2), 92-100.
  • Terin, M., Ceylan, M., Çiftçi, K. & Yıldırım, I. (2022). Damızlık Sığır Yetiştiricileri Birliğine üye olan ve olmayan süt sığırcılığı işletmelerinin hayvancılık desteklerinden faydalanma durumlarının analizi. Atatürk Üniversitesi Ziraat Fakültesi Dergisi , 53 (1), 42-50. DOI: 10.54614/AUAF.2022.960031
  • Trnkova, G. & Mala, Z. & Vasilenko, A. (2012). Analysis of the effects of subsidies on the economic behavior of agricultural businesses focusing on animal production, AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, 4, 1-12.
  • TÜİK, (2022). Hayvancılık istatistikleri. Türkiye İstatistik Kurumu (www. Tuik.gov.tr)
  • Vozarova, I.K. & Kotulic R. 2016. Quantification of the effect of subsidies on the production performance of the Slovak agriculture. Procedia Economics and Finance, 39, 298-304. https://doi.org/10.1016/S2212-5671(16)30327-6
  • WHO, (2022). The nutrition challenge and food system solutions. World Health organization. https://apps.who.int/iris/bitstream/handle/10665/277440/WHO-NMH-NHD-18.10-eng.pdf
  • Yamane, T. (2001). Temel örnekleme yöntemleri. Çevirenler: Alptekin Esin, Celal Aydın, M. Akif Bakır, Esen Gürbüzsel. Literatür Yayıncılık, İstanbul
  • Zhu, X., Demeter, R.M. & Lansink, A.O. (2008). Competiveness of dairy farms in three countries: the role of CAP subsidies. 12. Congress of the European Association of Agricultural Economists-EAAE, 2008.
  • Zhu, X., Demeter, R.M. & Oude Lansink, A. (2012). Technical efficiency and productivity differentials of dairy farms in three EU countries: The role of CAP subsidies. Agricultural Economics Review, 13 (1), 66-92. DOI: 10.22004/ag.econ.253496
There are 33 citations in total.

Details

Primary Language English
Subjects Agricultural, Veterinary and Food Sciences
Journal Section RESEARCH ARTICLE
Authors

Cuma Akbay 0000-0001-7673-7584

Abdulbaki Bilgiç 0000-0001-5946-0915

Project Number 112O824
Early Pub Date May 15, 2023
Publication Date August 31, 2023
Submission Date December 6, 2022
Acceptance Date March 20, 2023
Published in Issue Year 2023Volume: 26 Issue: 4

Cite

APA Akbay, C., & Bilgiç, A. (2023). The Effects of Subsidies on the Profitability of Dairy Cattle Farming in Türkiye. Kahramanmaraş Sütçü İmam Üniversitesi Tarım Ve Doğa Dergisi, 26(4), 888-901. https://doi.org/10.18016/ksutarimdoga.vi.1214182


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