TRENDS AND ISSUES IN FINANCING AGRICULTURE: A GLOBAL PERSPECTIVE AND LOOK AT TURKISH CASE
Recent statistics reveal that by 2050 a minimum 70% increase in agricultural production is to be achieved
to feed the steadily growing world population. Climate change, frequent natural disasters, soil degradation
and urbanisation reduce cultivable land areas and result in imbalance between supply and demand of food
commodities. As a consequence, higher agricultural commodity prices and food shortages require more
support to increase food production and to combat poverty. Lack of access to finance is a key impediment for
the majority of farmers in improving the efficiency of their productions and adopting better technologies.
With reference to agricultural financing field, we overviewed historical trends, issues, financing
methods and policy preferences within a global perspective and a framework for Turkey. Based on the
secondary data, utilizing time-series illustrative analysis, our research question focused on the adequacy and
efficiency of formal credit resources allocated to agricultural sector in Turkey. We revealed that during the
rewiev period, the relative size of formal credit resources allocated to agricultural area decreased gradually;
recent inflantionary trend in Turkey is triggered by high food prices and; new adjustment policy measures
that include selective credit policy tools are required.
Keywords: Agricultural sector, agricultural finance, financing methods.
Jel Codes: Q, Q1, Q14