Determining the farmer demand for olive oil premium support: The case of Izmir, Turkey

Abstract

The contribution is aimed at the research testing the reflection of olive oil premium support on farmers on the case of Izmir, in Aegean Region which is an important production area. The findings point out that small farms benefit less from the premium applications. The Probit and Heckman analysis showed that new policies directed at the small farms are required. In this context, different levels of premium for small farms should be paid, some inputs should be provided, and small producers should be assisted in marketing especially by promoting the farmers through co-operatives. Extension works organized for small farmers may have an informative and incentive role on the premium applications. Tax exemptions and crop aids are also appropriate tools for the small farmers to get more premiums.