An economic analysis of different size of farms in Turkey: the case of Trakya Region

Abstract

The study is conducted in sunflower and wheat producing farms in the Trakya region, Turkey. Face-to-face surveys are conducted with 113 farms and their capital structures are examined. Profitability ratios are calculated by making economic analysis of the different size farms. Farms are divided into two groups as group I (20-150 da) and group II (150 da +). The average land size of the farms is 90.85 da for group I and 305.50 da for group II. Assets are 11805.58 TL/da in group I and 15268.51 TL/da in group II. Land capital has the highest share in assets with 89.19%. The share of debts to liabilities is 2.40% in group I and 1.97% in group II. Gross profit for group I and group II are 307.80 TL/da and 390.79 TL/da respectively. Profitability factor for group I and group II is 24.98 and 38.94; economic profitability is 1.23 and 1.66; economic profitability is 0.81 and 1.28, respectively. According to the calculated profitability ratios and financial ratios, it is determined that as the size of the farm increases, the capital is used more efficiently. As the farm scale grows, costs decrease, and profitability increases with the decrease of unit costs. Agricultural policies aimed at increasing the size of the farm should be given priority. © 2021, Universidade Federal Rural de Pernambuco. All rights reserved.