Agricultural Investment in Turkey 2023
Investing in agricultural projects is one of the foremost economic activities that diligently seek to achieve profitability. Agricultural sector investment aims to make the optimal use of available resources to achieve productive and profitable returns in the long term.
What is agricultural investment in Turkey?
Agricultural investment is the process of integrating various factors of production available in the field of agriculture, including land, labor, and capital, with the goal of efficiently operating them to produce agricultural products that meet consumer needs and achieve the maximum possible benefits. These benefits vary depending on the prevailing economic system, where in some systems, the primary goal of agricultural investment may be to achieve maximum economic profit, thus generating a large quantity of profits. Whereas in systems that rely on cooperative production, agricultural investment must simultaneously achieve maximum economic and social profit.
Advantages of agricultural investment in Turkey
Agricultural investment in Turkey stands out with a range of attractive opportunities and advantages that investors can greatly benefit from. These include obtaining real estate residency in Turkey and even the opportunity to acquire Turkish citizenship through a specified investment amount. Additionally, profitable returns can be achieved after a period of time.
Another feature of why you should invest in farmland in Turkey is the ability to successfully manage agricultural investment projects, as the advanced financial infrastructure provides a conducive environment for efficiently executing agricultural projects. Natural factors are another important advantage supporting agricultural investment in the country, as Turkey enjoys a suitable climate for various types of agriculture and provides abundant water resources, along with extensive arable land.
Investors can also leverage experienced labor in this field, along with the presence of specialized agricultural engineers in field and agricultural area projects, contributing to the success of agricultural projects in Turkey.
Risks of buying farmland as an investment in Turkey
Despite the opportunities and advantages of agricultural investment in Turkey, investors in this sector should also consider the potential risks they may face. Here are some of the key risks of agricultural land investment in Turkey:
1. Weather and Environmental Risks
Farmers are exposed to weather risks such as droughts, floods, storms, and plant diseases, which can significantly impact crop and livestock production.
2. Price Volatility
Prices of agricultural products are influenced by global and local fluctuations, which can affect the profitability of agricultural projects.
3. Water Resource Shortages
In some regions, there may be shortages of agricultural water resources, making water resource management a challenge.
4. Technological Risks
The use of technology in agriculture can increase productivity but also exposes farmers to technological risks such as cyberattacks and technical issues.
5. Changes in Global Demand
Changes in global market demand for agricultural products can impact Turkey’s exports and, consequently, agricultural investment projects.
6. Food Safety and Quality Risks
Compliance with quality and food safety standards is essential, and failure to do so can lead to legal issues and damage to reputation.
To address these risks, investors should conduct thorough studies, develop well-structured investment plans, diversify investments, and carefully follow best practices in agriculture while managing risks prudently.
The agricultural investment law in Turkey for foreigners
The Foreign Direct Investment in Agricultural Law has been adopted in Turkey since 2003 and remains in effect to this day without any substantial amendments. Additional attractive investment opportunities have been provided for agricultural investors from around the world.
Firstly, all laws related to this type of investment are applied in the same manner to both local and foreign investors, regardless of their forms and details. In addition, government agencies and institutions grant foreign investors special and preferential treatment compared to local investors with the aim of attracting the maximum number of investments to the country.
Secondly, this law provides multiple incentives and attractions for foreign investors, such as not requiring entry visas upon arrival in Turkey. It also offers the possibility of obtaining Turkish citizenship under specific conditions and investments. Foreigners are also allowed to own real estate in Turkey in the same way that Turkish citizens can.
Thirdly, facilitations and tax exemptions are offered in areas that Turkish investors may not benefit from. This is natural, especially since most countries adopt this strategy to support their economies and attract foreign investments. Foreign investors in Turkey have received incentives in various fields such as defense and military industries, trade, exports, and real estate investment.
What is the best agricultural investment in Turkey?
Turkey is one of the best destinations for agricultural investment due to a variety of factors and support, making it a leading and promising destination in this field. Here are some of the best agricultural investment projects in Turkey:
1. Pistachio and Walnut Farming
Turkey is one of the largest pistachio producers in the world, known for its unique flavor and high quality. You can invest in purchasing farms where these crops are grown with high quality. Additionally, you can take advantage of walnut cultivation in Turkey due to favorable conditions.
2. Olive Farming
Olives are considered a profitable fruit, and their oil is easy to store. Turkey ranks sixth globally in olive cultivation and offers many investment opportunities in this field.
3. Vegetable Farming
Investment in vegetable farming is gaining popularity, and Turkey provides the ideal environment for growing a variety of high-quality vegetables.
4. Citrus Farming
Low-lying areas in Turkey are suitable for citrus cultivation, such as lemons and oranges. Factors like soil acidity, light, and the right location should be considered to ensure healthy growth.
5. Fruit Farming
Turkey’s diverse climates are suitable for cultivating various types of fruits. You can invest in apple, citrus, peach farming, and more. Turkey provides an ideal environment for these investments with high quality.
Seize these unique opportunities in the field of agricultural investment in Turkey and enjoy profitable returns.
Conditions for agricultural investment in Turkey
The Turkish government is making strong efforts to support the agricultural sector while maintaining controls to ensure sustainable development and equality. These conditions include:
1. Land Area
The agricultural land area should be no less than 1,000 square meters.
2. Location
The intended agricultural lands to be purchased by foreigners must be within the city limits specified by Turkish authorities.
3. Project Registration
The agricultural investment project must be registered under a company name with a minimum capital of 100,000 Turkish Liras.
4. Feasibility Study
A feasibility study for the investment project must be prepared for a duration of 5 years by consulting companies approved by the state.
5. Water Source
A sustainable water source must be provided for irrigation, either through groundwater wells or by connecting water lines to the investment farms.
6. Compliance with Laws
The investment project must adhere to all legal provisions governing foreign investment in the agricultural sector.
7. Electricity Supply
Upon approval of the investment project by the authorities, an electricity cable is connected to the agricultural land.
Important note: If a foreign investor collaborates with a local Turkish investor, they will be eligible for government support of up to 50% of the project’s value.
In conclusion, Agricultural investment in Turkey presents a compelling opportunity.
With its fertile land, favorable climate, and government support, Turkey is poised to become a thriving hub for agricultural investments. Don’t miss out on the chance to reap the rewards of this promising sector.
Edited by: VAAL Real Estate