The Effect of Subsidizing Policy in Oil Crops Production over Sunflower Planted Areas and Producer Welfare in Turkey

Sunflower is one of the important oil crops and one of the main crops in agricultural subsidizing system in Turkey. It is one of the main incomes of farmers in Trakya region as a received rate 65% from sunflower production of Turkey. The reflections of subsidies based on areas and the production price on producer incomes in the agricultural enterprises in Trakya region was analyzed in this research. There were no relationships among sunflower product price, planted area and production as well as it could be concluded that no effect of price subsidy on sunflower planted area and production in the research. Additionally, sunflower producers mentioned that they were not highly satisfied for subsidy amount and product price. Based on the study results, these subsidies on area and price supplied an increase about 36% Gross Production Value and 101% Gross Profit in sunflower. To bring a stabile level of this improvement on producer welfare and to provide of sustainability, it is possible that sunflower revenue per area should be same level with wheat income which is the main crop in rotations system. Therefore, to determine of sunflower product price (Trakya Birlik announced price + subsidy price), 2,5 rate as sunflower/ wheat parity was proposed as threshold price. If this threshold level is considered kept, it could be expected that region producers could go towards possibly to plant sunflower.