Comparison of IPARD I and IPARD II Programmes as a Source of Rural Development Financing in Turkey

Abstract

European Union (EU) uses The Instrument for Pre-accession Assistance (IPA) to prepare candidate and potential candidate countries for EU membership. One of the five components of IPA is rural development (IPARD). IPARD funds provide financing to develop production standards of agricultural establishments for competing with other establishments in EU member states. For this purpose, in Turkey IPARD I programme was applied between 2007 and 2013 and IPARD II programme was prepared to apply from 2014 to 2020. The purpose of this study is comparing structural differences of IPARD I and IPARD II programme which are important tools to increase competitiveness of agricultural establishments in Turkey. The main material of the study was IPARD I and IPARD II programs. In the study, firstly, the support given within the scope of IPARD programs were presented as tables and graphs. Structural differences between the two programmes were examined under three headings; targets of programmes, budgets of programmes and eligibility criteria. In the result of this study, changes and the actual statue of this important financial tool was revealed. Most important changes were public aid rates and new supporting sectors. Regarding to the public aid rates, while the highest rate was 65% in IPARD I, it is 70% in IPARD II. Also an additional 10% can be given for investments in effluent storage and waste management for benefit of the environment in IPARD II. In IPARD II; egg production, mushroom cultivation, machinery parks and renewable energy plants sectors are added to supporting sectors.