A study on identifying the effectiveness of the beekeeping grants provided by IPARD program: 269 examples of Erzurum, Kars and Agri provinces Aksoy, A.; Demir, N.; Bilgiç, A. A study on identifying the effectiveness of the beekeeping grants provided by IPARD program: examples of Erzurum, Kars and Agri provinces Reception of originals: 03/13/2018 Release for publication: 09/20/2018 Adem Aksoy Asst.Prof. in Agricultural Economics Institution: Ataturk University, Department of Agricultural Economics, College of Agriculture Address: Ataturk University campus, Erzurum, Turkey E-mail: [email protected] Nuray Demir Asst.Prof. in Agricultural Economics Institution: Ataturk University, Department of Agricultural Economics, College of Agriculture Address: Ataturk University campus, Erzurum, Turkey (corresponding author) E-mail: [email protected] Abdulbaki Bilgiç Asst.Prof. in Agricultural Economics Institution: Ataturk University, Department of Agricultural Economics, College of Agriculture Address: Ataturk University campus, Erzurum, Turkey E-mail: [email protected] Abstract In this study materials include surveys which have been applied 82 businesses that received grants from TKDK and 100 businesses that have not received any grants from TKDK in the Erzurum, Kars and Agri provinces. With this study we determine enterprises that have been reached or not reached their targeted purposes or goals with IPARD grants and what extent their purposes are realized in the Erzurum, Kars and Agri provinces. Treatment Effect Model was developed and used to determine the profitability of grants disbursed by TKDK. According to the survey results of the treatment effects of beekeeping enterprises, honey production in the field of beekeeping operators 2434 kg in a year when they receive grants, on the other hand it is estimated that if enterprises do not receive grants honey production will be 1572 kg in a year. This research will make an important contribution to the literature to measure the effects of grants on profitability of businesses. It is expected that the result of this research might give useful information to policy makers and the Ministry of Food, Agriculture and Livestock in Turkey. Keywords: IPARD. Beekeeping grants. Treatment effect model 1. Introduction Custos e @gronegócio on line - v. 14, n. 3, Jul/Sep. - 2018. ISSN 1808-2882 www.custoseagronegocioonline.com.br A study on identifying the effectiveness of the beekeeping grants provided by IPARD program: 270 examples of Erzurum, Kars and Agri provinces Aksoy, A.; Demir, N.; Bilgiç, A. Beekeeping is a livestock farming activity depending on nature both due to the life conditions of the honeybees and collecting the raw materials of the products from nature and live material production activity in terms of queen and cluster with products such as honey, beeswax, pollen, royal jelly, propolis and bee venom by using vegetative resources, bees and labor (Ören et al., 2010). It has a privileged place within the agricultural activities thanks to its contribution to vegetative production, generating income within a short period of time, requiring lesser capital and that it can be carried out independent of land (Uzundumlu et al., 2011). The beekeeping provides employment, income and healthy nutrition to the rural population in developing countries with its low operating costs, requiring lesser manpower in comparison to other production branches, easy storage of products and that it can be sold in line with value pricing (Burğut and Kumova, 2007; Kizilaslan and Kizilaslan, 2007). Considering these features of beekeeping, Turkey has an advantageous position in beekeeping among the World countries thanks to its natural richness and geographical position, bridging between the Asia and Europe (Kekeçoğlu et al., 2007). While beekeeping is carried out in Muğla, Ordu and Aydın provinces mostly as the main source of income by the families in Turkey, it may be carried out as a secondary income source along with other agricultural businesses (Parlakay et al., 2008). While the average honey yield is 14 kg/hive colony in Turkey, Ordu province takes the first place with 29.8 kg/hive colony for honey yield (Table 1). Table 1: According to provinces the number of colonies, honey honey production and production Honey Hive number Wax production Yield İl Number of farmer production (Unit) (ton) (kg/hive) (ton) Ordu 2 674 556 593 16 601 92 29.8 Muğla 4 947 995 102 15 206 893 15.3 Adana 2 465 481 272 9 763 381 20.3 Aydın 1 718 268 110 4 007 132 14.9 Mersin 2 012 262 601 3 493 222 13.3 Other 69 838 5 145 943 58 595 3 030 11.4 Turkey 83 447 7 709 621 107 665 4 750 14.0 Source: TUIK, 2016 Taking into account that agriculture industry has an important share in Turkish economy and major part of the population live in rural areas and that there is a significant Custos e @gronegócio on line - v. 14, n. 3, Jul/Sep. - 2018. ISSN 1808-2882 www.custoseagronegocioonline.com.br A study on identifying the effectiveness of the beekeeping grants provided by IPARD program: 271 examples of Erzurum, Kars and Agri provinces Aksoy, A.; Demir, N.; Bilgiç, A. amount of developmental differences between the regions, we can say that regional differences may increase more within the European Union as a result of accession of Turkey to the EU. Therefore, Turkey has to place greater importance on the rural development policies both during pre-accession and post-accession phases (Ekim, 2006). In this context, the main objective of this study is to identify whether the enterprises have reached the intended features with the grants executed under IPARD and unit impact and amount of the grants on the income of the agricultural enterprises and to what extent such targets have been reached. In this context, the subject of the study is to identify if there is any difference between the beekeeping enterprises which receive grants by the Agricultural and Rural Development Support Institution in the provinces of Erzurum, Kars and Agri and those which do not by comparing them socio-economically and present how such grants improve the size, effectiveness, technology level, EU hygiene standards compliance of the enterprises. We work on rural development policies and EU acquis harmonization in Turkey during the EU harmonization process (Elçi, 2007; Ulucan, 2007; Akın, 2008; Atak, 2009; Ağca, 2010; Işık and Baysal, 2011; Korkmaz, 2015) and contribute to the literature to identify the effectiveness of the grants provided through IPARD program (Çobanoğlu et al., 2016; Gülçubuk et al., 2016). 2. Materials and method 2.1. Materials The main material of the study is the enterprises which received a grant from Agricultural and Rural Development Support Institution and those with the similar organization but which did not receive grants within Erzurum, Kars and Agri provinces. The secondary data of the study is obtained from Turkish Statistics Institution, websites and relevant studies. 2.2. Method 2.2.1. Determining the sample size Custos e @gronegócio on line - v. 14, n. 3, Jul/Sep. - 2018. ISSN 1808-2882 www.custoseagronegocioonline.com.br A study on identifying the effectiveness of the beekeeping grants provided by IPARD program: 272 examples of Erzurum, Kars and Agri provinces Aksoy, A.; Demir, N.; Bilgiç, A. The survey is carried out through complete count method with grantee enterprises. In determining the enterprises which did not receive a grant, we determined the enterprises on which survey has been applied with Purposive Sampling Method. The number of the surveys to be applied on the producers that received a grant is determined as 82 enterprises in total; 31 of which between 3rd and 12th call period in Erzurum, 21 of which between 2nd and 12th call period in Kars and 30 of which between 9th and 12th call period in Agri. The purposive sampling method has been used to have the best knowledge since the aim in selecting the enterprises that did not receive a grant is to have information by identifying the enterprises that have similar organization with the grantee enterprises, not to have the data that represents the entire enterprises within the rural region (Çiçek and Erkan, 1994). For this purpose, it is identified through Purposive Sampling Method that the number of the enterprises that did not receive a grant is 100. Thus, carrying out 182 surveys in total has been planned. Table 2 shows the distribution of surveys by provinces. Table 2: The number of questionnaires administered per province İller Receive grant Non grant Total Erzurum 31 41 72 Kars 21 34 55 Ağrı 30 25 55 Total 82 100 182 2.2.2. Data Analysis Treatment Effect Model (TEM) has been used in accordance with the purpose of the research. This purpose constitutes integral results in the other aspects of the project. Treatment Effect Model has been modeled in the limdep statistics software. Model (Madalla, 1983; Greene, 2012; Kasteridis and Yen, 2012; Aksoy et al, 2017) has been used. The data has been assessed within the scope of the study for the enterprises which received and which did not receive the grant since the primary data are used for the Treatment Effect Model. Such data has been obtained from the questions to identify the production costs of the agricultural enterprises, therefore, production factors and their outputs during the production period of the farmers in the survey period. For the main objective of the study, it is aimed to present the impacts of the grants used by the agricultural enterprises on the gross Custos e @gronegócio on line - v. 14, n. 3, Jul/Sep. - 2018. ISSN 1808-2882 www.custoseagronegocioonline.com.br A study on identifying the effectiveness of the beekeeping grants provided by IPARD program: 273 examples of Erzurum, Kars and Agri provinces Aksoy, A.; Demir, N.; Bilgiç, A.