Sustainable Farming in Turkish Agriculture

Agriculture remains a cornerstone of Türkiye's economy, contributing approximately 6.5% of GDP and employing nearly 15% of the workforce (TÜİK, 2023). Yet, despite this structural importance, many farmers face persistent difficulties in turning a sustainable profit. A significant reason lies in the common underestimation of true production costs. While many producers’ base profitability on direct expenses, such as seeds, fertilizer, and fuel, they often ignore hidden costs like labor (including unpaid family labor), depreciation of machinery, land rental value, irrigation system maintenance, and foregone income from alternative crops or land uses.

This narrow view distorts the real picture of profitability. For instance, a farmer may perceive a crop as successful because it generated a net cash income, but once opportunity costs and long-term capital depreciation are factored in, the enterprise may, in fact, be operating at a loss. Additionally, volatility in input prices and markets, exacerbated by inflation and global supply shocks, makes forward planning difficult without robust cost-accounting tools.

Another concern is the lure of niche or trendy crops, such as medicinal herbs or exotic vegetables. While these may promise high returns, they also carry higher risks. Without stable markets or buyer guarantees, many farmers find themselves unable to recover even basic costs when prices collapse.

Recent field examples from Central Anatolia and the Aegean region illustrate the severity of the issue: producers who shifted from wheat to quinoa, hoping for export demand, ended up facing severe price drops and unsold harvests due to oversupply and lack of marketing channels. In the absence of a comprehensive risk assessment and diversified market strategy, such missteps can lead to financial strain or even bankruptcy.

Therefore, it is critical that farmers adopt a comprehensive cost analysis approach, factoring in both visible and invisible costs, to make informed decisions. Enhanced training in farm economics, supported by agricultural extension services, could improve long-term financial resilience and help sustain rural livelihoods.

The Misunderstood Economics of Farming

Farmers often assess their operations based on visible costs, such as expenditures on seeds, fertilizers, pesticides, irrigation, and fuel. While these direct costs are essential to track, they provide only a partial picture of actual profitability. Agricultural economists stress the importance of accounting for hidden costs to make informed financial decisions and avoid common misconceptions that lead to economic vulnerability.

One key hidden cost is family labor. Many smallholder farmers rely heavily on unpaid family members to manage fields, livestock, and post-harvest work. If this labor were monetized at local wage rates, it would significantly reduce net profits. Similarly, depreciation of farm machinery, tractors, harvesters, and irrigation systems, is rarely accounted for in routine calculations. Over time, this oversight distorts profitability and delays essential reinvestment.

Opportunity costs also matter. Choosing one crop over another means forgoing alternative income. A farmer who grows wheat but could earn more from lentils or sunflowers may face unseen financial loss despite earning positive cash flow. Additionally, the living expenses of farming families, housing, education, healthcare, must be included to assess whether agriculture supports a viable livelihood.

A 2022 survey by Türkiye’s Ministry of Agriculture and Forestry revealed that 40% of small-scale farmers underestimate production costs, often resulting in liquidity issues when prices drop or yields fall. Furthermore, high yields can be misleading. For example, producing 40,000 TL worth of wheat after spending 10,000 TL seems like a large profit, but if alternative crops like corn could earn 50,000 TL, the real net gain is diminished when factoring in opportunity cost.

The Union of Agricultural Chambers (TZOB, 2023) reports average net profit margins of just 12–15% in crop farming, far below those in manufacturing and services. These tight margins make comprehensive cost accounting not just advisable but essential. Without it, many farmers unknowingly operate at or near a financial loss.

The Dangers of Niche Markets in Turkish Agriculture

In the pursuit of higher profits, many Turkish farmers are increasingly drawn to niche markets, small, specialized segments offering high returns to a limited number of producers. These markets often revolve around crops such as medicinal herbs (thyme, sage), exotic fruits (like avocados in Antalya), or specialty items like birdseed. While profitable for early adopters, niche markets are extremely sensitive to oversupply, making them risky for mass adoption.

A telling example is the 2021–2023 birdseed boom and bust in Konya. Initially, a handful of farmers reaped high returns by cultivating bird seed for the domestic pet market. Their success quickly drew attention, prompting neighboring farmers to switch production. Within two seasons, supply surged by 300% (TZOB, 2023), but consumer demand remained unchanged. Prices plummeted by 60%, rendering the crop unprofitable and leading to widespread losses. This reflects what experts call the “neighbor’s goose effect”, when farmers imitate perceived success without evaluating long-term viability, ultimately saturating the market and damaging everyone involved.

Another powerful cautionary tale is the “Mehmet Çavuş Onion Crisis.” In this case, a wealthy landowner abandoned a low-priced onion harvest and offered it freely to a local farmer, Mehmet. Seizing the opportunity, Mehmet bore costs for labor, packaging, and transport to sell the onions in Konya’s vegetable market. Unfortunately, a glut in the market left the onions unsold, exposed to rain, and ultimately rotting. Market authorities disposed of the produce, and Mehmet incurred losses due to fines, wasted investment, and unpaid debts. This example underlines that even “free” crops can be economically ruinous without proper market analysis, storage, and sales strategies.

Compounding these issues, Türkiye faces significant post-harvest losses. The FAO (2023) reports that 15–25% of fresh produce is wasted due to poor storage, inadequate transportation, and weak cold chain systems. TÜİK (2023) estimates that nearly one-third of fruits and vegetables never reach consumers, costing the agricultural sector over $2 billion annually.

While crop diversification is a sound strategy in theory, shifting to unproven or fashionable crops carries steep risks. New varieties may not suit the local climate or require unfamiliar inputs, increasing costs and uncertainty. According to the Turkish Agricultural Risk Assessment Report (2023), 70% of farmers who ventured into new crops experienced losses within their first two seasons. For most producers, sticking to well-researched, locally adapted, and consistently demanded crops offers a safer, more sustainable path to profitability.

The Stability of Traditional Farming

Traditional farming practices in Türkiye may not promise extraordinary profits, but they offer something far more valuable, stability. For generations, families have relied on crops like wheat, barley, corn, and lentils to provide steady income, food for the household, and a sense of security during uncertain economic times. The resilience of traditional agriculture lies in its predictability. These crops have known growing cycles, established markets, and decades of experience behind them. Even when prices fluctuate, farmers are often able to recover due to lower input costs and their ability to use part of the harvest for personal consumption.

There’s a popular saying among Turkish farmers: “No one has ever become rich from farming, but no one has ever starved from it either.” This sentiment reflects the role of farming as a buffer against poverty, rather than a pathway to wealth. Unlike speculative ventures or niche markets that can lead to quick losses, traditional crops offer a more grounded approach to agricultural livelihood.

Conclusion

Farming is not a shortcut to riches, it’s a long-term investment requiring patience, knowledge, and risk management. To build a sustainable future for Turkish agriculture, several steps are essential. Farmers need better education on calculating real production costs, including hidden and opportunity costs. Improving storage, logistics, and cold chain infrastructure can reduce post-harvest losses and stabilize income. Niche markets, while potentially profitable, must be monitored and regulated to avoid oversupply and market crashes. Finally, crop insurance and subsidies must be strengthened to protect against climate-induced losses and price volatility.

Türkiye’s farmers are the foundation of its food security. While the sector faces numerous challenges, smarter planning, better policies, and practical support can help farmers navigate risks and build a more resilient agricultural future. As the proverb says, “Stick to what you know, and let the neighbor’s goose be just that, a goose.”

References: Turkish Statistical Institute (TÜİK); Ministry of Agriculture and Forestry; TZOB; FAO

Please note that the views expressed in this article are of the author and do not necessarily reflect the views or policies of any organization.

The writer is affiliated with the Department of Agricultural Economics, Selcuk University, Konya-Türkiye and can be reached at mdirek@selcuk.edu.tr

Related Stories