Determination of the factors affecting the domestic terms of trade in greenhouse tomato production

Abstract

ABSTRACT: Agriculture plays a leading role in the economic growth and development process. Ensuring the continuity of production depends on the purchasing power of the producers. The sustainability of production and the development of the rural welfare index in favor of the producers will increase the driving role of the agricultural sector, which is also a resource for other sectors. This study determined the variables affecting the Domestic Terms of Trade of the greenhouse tomato producers in Antalya, Türkiye. The product price has been determined as the major factor affecting the Domestic Terms of Trade. In addition, it was concluded that a one-unit increase in the product price increases the Domestic Terms of Trade by 34.99 units. Interviews revealed that the continuity of consumption needs is more important than the continuity of production. It has been determined that the high and variable input costs cause erosion in the incomes of the producers. Agricultural policies will be more effective both in the short and long term when the aim is to improve the welfare and purchasing power of producers, rather than intervening in agricultural prices or reducing prices.

Keywords

• agriculture
• price scissors
• laspeyres indices
• relative prices
• rural income