Abstract
This chapter discusses the effects of agricultural policies with respect to price and income stability, output increases and technological developments, income distribution and inflation. Agricultural support, encompassing price supports, input subsidies and credit policies, is a pervasive phenomenon in Turkish agriculture. Agricultural support policies are one aspect of the more comprehensive phenomenon of government intervention in the economy. The most commonly stated reason that is claimed to necessitate this intervention is the risk and uncertainty involved in agricultural production that result in the instability of agricultural prices and incomes. There are very few studies that have specifically looked into the level of stability that has been achieved in agricultural prices and stiU fewer that have asked whether such stability as has been achieved can be attributed to support policies. Support policies can influence changes in current and real agricultural incomes, the stability of those incomes, and the distribution of income.
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