Backed by an EU pre-accession funding program, Türkiye plans a new investment of almost TL 20 billion ($1 billion) to revamp production in rural areas in the coming period, a report said Tuesday.
The IPARD III Program supports the development of agriculture and rural areas in candidate and potential candidate countries for EU membership.
The new investment, coordinated by the Agriculture and Rural Development Support Institution (TKDK) of Türkiye’s Agriculture and Forestry Ministry, aims to create as many as 30,000 new jobs, a report by Anadolu Agency said.
The IPARD aims to support preparations for harmonization with the European Union’s standard agricultural and rural development policies and policy development.
Under the IPARD I initiative, aimed at enhancing the agricultural sector’s competitiveness, bolstering physical infrastructure, boosting economic capacity and promoting diversity in rural areas, more than 1 billion euros ( almost $1.1 billion) was allocated to 10,653 projects until its conclusion in 2016.
The IPARD II program disbursed 676 million euros for 11,022 projects.
The Agriculture and Forestry Ministry has been actively engaged in preparatory work for the upcoming IPARD III Program, slated to commence in the second half of this year and run until 2027.
Since 2020, comprehensive sector analyses have been conducted, and the perspectives of all stakeholders have been taken into account during this process.
Implementation of the IPARD III Program will initiate upon enforcing the Financing Agreement, which will be mutually signed with the European Commission.
The EU has earmarked a substantial contribution of 430 million euros for the IPARD III Program. Alongside the Ministry of Agriculture and Forestry’s pledges, the total budget stands at 555 million euros. Notably, the program offers enticing incentives such as high grant rates between 50-75% and tax exemptions for investments, making it particularly appealing.
The IPARD III Program aims to significantly increase the total public contribution to the LEADER Project, which focuses on implementing local development strategies in rural areas, to 50 million euros. This increase is intended to satisfy local action groups and foster their initiatives. Furthermore, there has been an augmentation in the agriculture and environmental budget.
Moreover, another development in the program is allocating funds for public infrastructure investments and consultancy services in rural areas, marking the first time such a budget has been designated.
Through the combination of contributions from the IPARD III Program and the additional budget allocated by the Agriculture and Forestry Ministry, the objective is to facilitate a new investment totaling TL 20 billion, with approximately TL 11 billion being funds.
Additionally, there are plans to expand the IPARD Program, which is currently operational in 42 provinces, to encompass all 81 cities in the country.