If there is no cheap financing in agriculture, yield decreases and costs increase.

Crisis Bells in the Agriculture Sector

Mutlu Doğru, the President of the Adana Farmers' Union, stated that one of the most important support elements for the agriculture sector is treasury-backed agricultural loans. In recent years, adverse conditions such as climate change, drought, frost, extreme temperatures, and hail have led farmers in the sector to experience difficult times. The contraction in the market, lack of demand, decrease in investments, and rising interest rates have also deeply affected the agriculture sector.

Declining Interest Subsidy Upsets Farmers

Doğru expressed that the reduction of interest subsidy rates for agricultural loans by 50% as of October 24 has caused great disappointment among farmers. Moreover, the fact that the upper limits, which have not changed in the last two years, will remain the same until the end of 2026 has further concerned the farmers.

Food Security Threat: High Food Inflation

Doğru emphasized that the agriculture sector is critical for food security. He noted that the agricultural production price index has been around 36% in recent years, and due to the natural disasters, agricultural and livestock production has declined, resulting in food inflation reaching levels of 37%. This situation has also negatively affected consumers' purchasing power.

The Importance of Affordable Financing

Farmers need affordable financing to achieve efficiency in production. Doğru stated that farmers who cannot find affordable financing will either have to cut back on inputs or incur debt at high interest rates. In either case, the outcome could bring a challenging period for the national economy and consumers. Therefore, it has become essential to rearrange treasury-backed agricultural loans with old interest support rates and to increase the upper limits.