Türkiye's Agriculture: Challenges, Risks, and Strategies

Agriculture has long been one of the pillars of Türkiye’s economy, contributing significantly to the country's Gross Domestic Product (GDP) and employing a large portion of its population. However, in recent decades, the agricultural sector has faced increasing risks due to both environmental and economic challenges. Climate change, particularly, has added a new layer of unpredictability to an already risk-laden industry. Türkiye's agricultural sector is highly dependent on natural conditions, and the increasing variability in weather patterns, coupled with the risk of droughts, floods, and other natural disasters, has made farming more difficult than ever..

These changes demand a renewed focus on risk management strategies for farmers in Türkiye. While agricultural insurance schemes exist, they are not sufficient to cover all farmers or to address the full scope of the challenges faced. New approaches and policy tools are needed to help farmers adapt to the rapidly changing climate and ensure the long-term sustainability of agriculture. In this context, it is essential to reassess Türkiye’s agricultural policies to help farmers manage risk more effectively and build a more resilient agricultural sector.

The Impact of Climate Change on Agriculture in Türkiye

Agriculture in Türkiye, as in many other countries, is deeply intertwined with the seasons. However, as climate change accelerates, seasonal patterns are becoming less predictable, creating new challenges for farmers. For instance, the timing of planting and harvesting, which used to follow a predictable schedule, is now affected by unusual weather patterns. Droughts, heavy rains, and unexpected temperature fluctuations have made it difficult for farmers to maintain consistent production levels.

In recent years, Türkiye has experienced prolonged droughts in key agricultural regions, including the Konya Plain, which is known as the country's breadbasket. These droughts have severely impacted wheat, barley, and other cereal production, leading to lower yields and reduced income for farmers. Additionally, irregular rainfall patterns have affected fruit and vegetable production in coastal regions, where crops like tomatoes, cucumbers, and citrus fruits are vulnerable to extreme weather conditions.

One stark example of the consequences of climate change is the increased frequency of hailstorms, which have devastated crops such as apricots and cherries in central and eastern Türkiye. Hailstorms cause immediate damage to crops, leading to both quality and quantity losses. Even minor fluctuations in temperature during critical growth stages can reduce the market value of produce, affecting the income of farmers and the agricultural economy.

Challenges in Risk Management for Turkish Farmers

Given the growing environmental uncertainties, risk management has become a key priority for Türkiye's farmers. However, many farmers are still inadequately prepared to deal with these challenges. Agricultural insurance, while available, does not cover all farmers or provide sufficient protection against all types of risk. In addition, the high costs of insurance premiums deter small-scale farmers from enrolling in these programs.

Moreover, there is a widespread lack of financial accountability and structured management in many farming operations. Most farmers do not have formal accounting systems in place, making it difficult to track their expenses and profits accurately. This lack of financial transparency hinders farmers’ ability to manage risks effectively and plan for the future.

Another significant issue is the misalignment between government policies and the actual needs of farmers. The Ministry of Agriculture and Forestry in Türkiye plays a central role in shaping agricultural policies, but many of these policies are reactive and short-term, rather than proactive and long-term. For example, subsidies are often provided to farmers without a clear strategy for promoting sustainable farming practices or encouraging the adoption of modern risk management techniques.

Financial Accountability and Professionalizing Farming

One critical step towards improving risk management in Türkiye’s agricultural sector is to promote greater financial accountability among farmers. Like any other profession, farming should be treated as a business that requires careful planning, record-keeping, and financial management. Currently, many farmers do not maintain detailed financial records, making it difficult for them to assess the profitability of their operations or make informed decisions about investments and risk management.

Introducing formal accounting systems for farmers would not only help them better understand their income and expenses but also enable them to identify areas where they can reduce costs or improve efficiency. Furthermore, by having access to accurate financial data, farmers would be better positioned to apply for loans, insurance, and other forms of financial support, which could help them manage risks more effectively.

In addition to promoting financial accountability, there is a need to professionalize farming in Türkiye. Farming should be recognized as a legitimate and respected profession, rather than as a fallback occupation. This requires developing policies that incentivize young people to enter the agricultural sector and providing them with the training and resources needed to succeed.

The Role of the Ministry of Agriculture and Forestry

The Ministry of Agriculture and Forestry has a critical role in helping farmers manage risks and ensuring the long-term sustainability of the agricultural sector. However, the ministry’s efforts are often hampered by bureaucratic inefficiencies and a focus on short-term solutions. To address this, the ministry must adopt a more proactive and strategic approach to agricultural policy.

One area where the ministry can make a significant impact is in promoting the adoption of sustainable farming practices. For example, encouraging the use of drought-resistant crop varieties, promoting efficient irrigation systems, and supporting organic farming could help mitigate the impact of climate change on agricultural production. Additionally, the ministry should work to integrate agricultural insurance more comprehensively into its support programs, ensuring that all farmers have access to affordable and effective coverage.

Long-term planning is also essential for the success of the agricultural sector. The Ministry of Agriculture and Forestry should develop a comprehensive, long-term agricultural strategy that addresses both the immediate challenges posed by climate change and the broader issues of economic sustainability and food security. This strategy should include clear guidelines for farmers, as well as incentives for adopting sustainable practices and improving resource management.

Collaboration Between Stakeholders

Effective risk management in agriculture requires collaboration between multiple stakeholders, including farmers, government agencies, and the private sector. Each of these groups has a role to play in ensuring the sustainability of Türkiye’s agricultural sector.

Farmers must be encouraged to take responsibility for managing their own risks by adopting sustainable farming practices and improving their financial management. At the same time, the government must provide the necessary support in the form of subsidies, insurance, and technical assistance to help farmers cope with the challenges of climate change.

The private sector also has a role to play in supporting farmers through the development of innovative products and services. For example, companies can offer precision agriculture technologies, such as remote sensing and data analytics, to help farmers make more informed decisions about planting, irrigation, and pest management. Additionally, financial institutions can offer flexible loan products that are tailored to the unique needs of farmers, helping them access the capital they need to invest in risk management tools.

International cooperation is another important aspect of risk management in agriculture. Climate change is a global challenge, and countries must work together to share knowledge and resources. By collaborating with international organizations and other countries, Türkiye can access the latest technologies and best practices for managing risks in agriculture.

Case Study: Risk Management in Agriculture in Türkiye

One example of successful risk management in Türkiye’s agricultural sector is the implementation of the Turkish Agricultural Insurance Pool (TARSIM), which provides insurance coverage to farmers for a wide range of risks, including natural disasters, plant diseases, and livestock losses. TARSIM has helped many farmers recover from financial losses caused by extreme weather events, such as droughts and floods.

However, there is still room for improvement in Türkiye’s risk management framework. For example, while TARSIM covers a broad range of risks, many farmers are unaware of the program or find the premiums too high. Expanding outreach and education efforts to ensure that all farmers are aware of the benefits of agricultural insurance could help increase participation and reduce the financial impact of natural disasters on the agricultural sector.

Additionally, Türkiye’s irrigation infrastructure needs significant investment to ensure that farmers have reliable access to water, particularly in regions prone to drought. The construction of new dams, reservoirs, and irrigation canals, as well as the adoption of water-saving technologies, can help farmers manage the risk of water scarcity and improve agricultural productivity.

Conclusion: Building a Resilient Agricultural Sector

The agricultural sector in Türkiye faces significant challenges due to climate change, economic uncertainty, and resource scarcity. However, by adopting comprehensive risk management strategies and promoting collaboration between stakeholders, Türkiye can build a more resilient agricultural sector that is better equipped to handle the challenges of the 21st century.

Key steps include promoting financial accountability among farmers, professionalizing farming as a business, and encouraging the adoption of sustainable farming practices. Additionally, the Ministry of Agriculture and Forestry must play a proactive role in developing long-term agricultural policies that address both climate change and economic sustainability.

By working together and adopting a forward-thinking approach to risk management, Türkiye can ensure the long-term sustainability of its agricultural sector and secure the livelihoods of its farmers for generations to come.

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.

Mithat Direk is serving the Department of Agricultural Economics, Selcuk University, Konya-Türkiye.

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