The Effects of Subsidies on the Profitability of Dairy Cattle Farming in Türkiye
The main purpose of this study is to investigate the impact of subsidies on dairy farm profits in Türkiye using the Treatment Effect and Switching Regression models. The assessment may conclude that revenue will grow, decline, or remain unchanged. To achieve the objectives of this study, the sample size of 662 farmers in 12 provinces of Türkiye was determined using the stratified sampling technique. In the sample, the choice and benefit of the subsidies of dairy farms, socioeconomic factors, and subsidies influencing dairy farm profit will be determined. 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 the agricultural activity. The research findings will provide valuable information for the Ministry of Agriculture, and policymakers.
Keywords: Livestock subsidize, support, dairy cattle farming, farm income, Treatment Effect, Switching Regression Model