Marrakech, MoroccoAbstract: This paper is draws lessons from the past agricultural policies that paved the way for agricultural policy reform in Turkey. Despite large transfers to agriculture, the growth rate of labor and land productivity are declining. The source of these transfers is mainly the consumers with a significant welfare cost. The burden of support falls more on low-income consumers. The form of support contributes to income inequality, and widening of absolute income differentials in the rural sector. Rural income distribution is more equal than urban distribution, but rural average income per household is significantly lower than that of urban. Poverty is more prevalent in rural areas. The effectiveness government interventions can be improved by refraining from using price-distorting policy tools. Differentiation of policy tools according to the resource base of the regions seems to be a feasible alternative. The views presented in this paper belong to the author and do not necessarily reflect the views of any organization or institution, especially the World Bank
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