The Effects of Subsidies on the Profitability of Dairy Cattle Farming in Turkiye

Abstract

The main purpose of this study is to investigate the impact of subsidies on dairy farm profits in Turkiye. To satisfy this objective, the Treatment Effect and Switching Regression models were used. The assessment may conclude that revenue will grow, decline, or remain unchanged. The sample size was determined as 662 by using the number of dairy cattle in the enterprises in 12 provinces and the stratified sampling method. In this study, the status of dairy cattle farms benefiting from subsidies, the socioeconomic factors affecting this level, and the effects of subsidies on the profit of the farms were analyzed. According to the results, 70.1% of dairy farms benefited from livestock subsidies. Moreover, farm size, cultivated area, forage area, lactation period, milk productivity, gross profit, and net profit have positive and statistically significant effects on livestock subsidies. According to the results of the treatment effect model, benefitting from farmers' support will increase farmers' revenue and profit. The benefits from livestock subsidies of farmers will increase the gross production value by approximately $8636.4. This is important for the sustainability of agricultural activity. The research findings will provide valuable information for the Ministry of Agriculture and Forestry, and policymakers.