As Turkey enters the 2022 harvest season, wheat farmers can look forward to a promising year, with wheat production expected to rise by 10.4% compared to the previous year. The total production is anticipated to reach 19.5 million tons, according to the latest reports from the Grain Products Office (TMO). This increase in wheat output is complemented by a significant rise in barley production, which is projected to increase by 48% to 8.5 million tons. The surge in production is a welcome development for Turkey’s agricultural sector, which has faced challenges in previous years due to weather conditions and input costs.
Government Support: Higher Prices and Additional Benefits for Farmers
In response to this increase in production, President Recep Tayyip Erdoğan recently announced higher wheat and barley purchasing prices, which are set to benefit farmers nationwide. For the current year, the TMO will purchase hard bread wheat at 6,050 lira per ton, along with a 1,000 lira premium, making the total payment 7,050 lira per ton. Similarly, the barley purchase price is set at 5,500 lira per ton, with an additional 500 lira premium, bringing the total payment to 6,000 lira per ton.
This support is designed to ensure that farmers receive fair compensation for their hard work and investment, helping them recover from the increasing costs of production. The government’s proactive price setting is expected to encourage continued wheat and barley planting, helping meet both domestic and international demand.
A Convenient Procurement Process
To streamline the sale of wheat and barley, the TMO has implemented an electronic product certificate system (ELÜS), which allows farmers to sell their grains through licensed storage facilities. Farmers who deliver their products to these licensed depots can easily sell their grains electronically through the TMO’s platform. Additionally, payments will be made within 10 days from the date of delivery, ensuring that farmers can access their funds quickly.
There are several other benefits for farmers selling through licensed depots, including exemption from a 2% withholding tax, exemption from 2% social security contributions, and transportation support of 25 lira per ton. Furthermore, farmers can access zero-interest, 9-month loans for up to 75% of the product price through Ziraat Bank and the Agricultural Credit Cooperatives.
Wheat and Barley Premiums: A Key Incentive
To encourage more farmers to sell their crops to the government, an additional wheat premium of 1,000 lira per ton and barley premium of 500 lira per ton are being offered. However, to be eligible for these premiums, farmers must sell their products to the TMO by September 1st. The premium payments will be distributed during the fall planting season and are part of the government’s broader strategy to stabilize the agricultural market.
The 10.4% increase in wheat production and the government’s support measures, including higher purchase prices, premiums, and easy access to financing, provide a strong foundation for Turkey’s agricultural sector in 2022. Farmers will benefit not only from higher crop yields but also from the economic support that makes farming more sustainable. With these measures in place, Turkey is set to strengthen its position as a key player in global wheat markets while ensuring a stable and prosperous future for its farmers.
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