Highlights

MinFAL plans to grant 11.6 billion TL ($3.87billion) in agricultural subsidies to producers in 2016. The share of the total payment directed towards livestock will be 3.2 billion TL ($1.07 billion), with 1 billion TL ($333 million) for calf subsidies. Note that these estimates assume an exchange rate of US$1=3 TL, although the actual rate is quite variable. The important updates on 2016 subsidies are to merge fuel subsidy and fertilizer subsidy into one payment and to abolish soil analysis subsidy which was previously granted to producers benefiting from the fertilizer subsidy. The subsidies for calves increased while the subsidies for dams were removed. The subsidies for dams were previously the main support for producers. According to livestock sector, the calf subsidy was increased in order to boost the cattle population and to close meat deficiency in Turkey.

Livestock Subsidies

The Ministry of Food, Agriculture, and Livestock (MinFAL) plans to grant 11.6 billion TL ($3.87 billion) in agricultural subsidies to producers in 2016. The share of the total payment directed towards livestock will be 3.2 billion TL ($1.07 billion), with 1 billion TL ($333 million) for calf subsidies. Note that these estimates assume an exchange rate of US$1=3 TL, although the actual rate is quite variable.

The specific rules for the subsidies are determined by the Communique on Implementing Rules Regarding Livestock Subsidies which is republished each year by Ministry of Food, Agriculture and Livestock (MinFAL) (updated Communique No: 2016/26).

According to the Decree on 2016 Agricultural Subsidies, livestock subsidies will be paid directly to producers. Roughly 2 percent to 3 percent of those total payments will go directly to Associations. Before 2016, all subsidies were given to Associations in order for them to distribute to producers.

The important updates on subsidies are to merge fuel subsidy and fertilizer subsidy into one payment and to abolish soil analysis subsidy which were previously granted for producers benefiting from the fertilizer subsidy. The sector believes that producers will face problems with choosing appropriate fertilizers for their farms if soil analysis subsidies are abolished. Fishing vessels subsidies remain the same as in 2015.

The subsidies for calves increased while the subsidies for dams are removed. The subsidies for dams were previously the main support for producers. According to livestock sector, MinFAL increased the calf subsidy in order to boost the cattle population and to close meat deficiency in Turkey. The subsidy aims to prevent calf losses. Also, the sector believes that calving period in Turkey is longer than in EU countries and needs to be shortened. With the new subsidies to calves, they believe the period will be shortened and programs of one calf in one year will be implemented.

Calf subsidies: In order to improve cattle number inventory in Turkey and to decrease calf losses in cattle herds, calves raised at a facility for at least four months are subsidized. The calves must be born in 2016 and registered in the TURKVET and e-improvement database. E-improvement database registers cattle animals into system and is jointly operated by MinFAL and Cattle Breeders' Association of Turkey (CBAT). TURKVET is a database operated by MinFAL and registers cattle animals, breeders and facilities in Turkey within the scope of Implementing Regulation published by MinFAL on identification, registration, and supervision of cattle animals.

Herd-book calf subsidy:The subsidy is provided for the calves of the dams registered in the e-improvement system and inseminated in Turkey 210-295 days before the date of calf birth. Insemination details should also be in the e-improvement system.

Calf of buffalo: Buffalo calves raised at a facility at least for four months are subsidized. The calves must be born in 2016 and registered in the TURKVET database.

Raw milk subsidies: With the difference of new Decree, raw milk subsidy will not be granted to producers who produce raw milk without a contract and do not register their contract into Milk Registration System. Additionally, producers must sell their milk to Milk and Meat Board (ESK) or must produce powder milk within scope of a contract with ESK. Those amendments are made according to the milk surplus situation in Turkey.

Breeding female sheep/goat subsidies: The subsidy given to breeding sheep and goat increased in 2016. Sheep/ goat breeders who are members of the Breeding Sheep-Goat Breeders Associations and whose animals are registered to KKKS (Sheep/Goat Registration System) and KKBS (Sheep/Goat Information System) can benefit from this subsidy once a year for each breeding female animal. Breeding female animals must be born on 1st of September 2015 or before.

Angora goat and mohair production subsidies: In 2016, this new subsidy will be granted to angora goat producers who sell their mohair to Mohair Selling Cooperatives or to breeding sheep and goat breeders associations.

Feeder male cattle subsidy:200 TL per head is granted to breeders for up to 300 head of animals who slaughter their male cattle (including buffalo, registered on the Ministry's database, born within the country and have finished their feeder period) in the slaughterhouses complying with the national legislation.

The other important update on Subsidy Decree of 2016; forage plants subsidies are increased. Also the subsidies for the establishments free from diseases are reduced.