Economy in Turkey: Farmers’ debt to banks and individuals exceeds 850 billion TL
The scene in Turkey is gloomy on World Farmers Day. As the number of farmers decreases, debts have reached their peak. Farmers and industry representatives say, “Imports and low purchase prices will be our downfall.”
Farmers in Turkey are celebrating the 40th anniversary of World Farmers Day amidst significant challenges. While the share of agriculture in the national income has dropped to single digits, Turkey became the champion of food inflation among OECD countries in 2023, reaching over 100%. The World Farmers Day, initiated by the International Federation of Agricultural Producers in 1984, is being celebrated today. Turkey stands out as one of the countries where these difficulties are most pronounced, especially under the threat of climate crisis in agriculture and food.
With urbanization, the population disconnected from agriculture is increasing, while according to Social Security Institution (SGK) data, the number of active insured farmers, which was 1 million 56 thousand in 2012, has now dropped to 460 thousand.
Despite the difficulties in agriculture, farmers continue to produce, facing challenges such as rising costs, declining profits, drought threats, misguided import policies, insufficient support, and low purchase prices. While the Agricultural Producer Price Index (APPI) closed at 67% for 2023, food inflation also closed at 72% in 2023.
Farmers’ debt to banks has increased by 64.7% in one year, reaching 651.6 billion TL, a 122-fold increase in the last 20 years. Mortgaged agricultural land in Turkey has reached 42.3 million decares, and mortgages have been placed on the titles of 2 million 230 thousand farmers.
