Türkiye's Agricultural Sector: Rising Energy Costs

Energy security and food security are deeply intertwined challenges that increasingly shape national policy agendas, particularly in countries like Türkiye where agriculture plays a central economic and social role. As the sector has moved from traditional labor-intensive methods to highly mechanized, technology-driven production, its dependence on energy, especially fossil fuels, has grown substantially. Today, nearly every stage of agricultural production relies on energy inputs: land preparation, irrigation pumping, fertilizer manufacturing, harvesting, processing, storage, and transportation.

This dependence makes the sector highly vulnerable to fluctuations in global energy prices, geopolitical tensions, and domestic supply constraints. When energy costs rise, production expenses climb sharply, squeezing farmer incomes and threatening food affordability for consumers. Türkiye’s agricultural energy profile reflects a heavy reliance on diesel for mechanization, electricity for irrigation, and natural gas–based fertilizers. Volatile international oil and gas markets, coupled with exchange rate fluctuations, have intensified cost pressures on farmers in recent years. For many producers, particularly smallholders’ energy has become one of the largest components of total production costs, sometimes accounting for up to 40% of expenditure on irrigated systems. These rising costs undermine profitability, limit investment in modern technologies, and may push farmers to reduce input use, ultimately lowering yields.

Beyond economic impacts, Türkiye’s agricultural energy dependency contributes to environmental challenges such as greenhouse gas emissions, groundwater depletion from energy-intensive irrigation, and soil degradation associated with chemical fertilizer use. As climate change intensifies, these environmental stresses pose additional risks to agricultural productivity and national food security.

This article therefore argues for an urgent transition toward energy-efficient technologies and renewable energy solutions such as solar-powered irrigation, biogas systems, precision agriculture, and improved machinery efficiency. By diversifying energy sources and reducing dependence on imported fuels, Türkiye can strengthen agricultural resilience, lower production costs, enhance environmental sustainability, and protect its long-term food security.

The Global Energy Context and its Agricultural Implications

The global energy system is undergoing a profound transformation, driven by rising climate concerns, technological advancements, and shifting geopolitical dynamics. For decades, fossil fuels (oil, coal, and natural gas) have supplied the bulk of the world’s energy demand. However, mounting environmental pressures and the declining costs of renewable technologies have accelerated a transition toward cleaner energy sources. According to the International Energy Agency (IEA), renewable energy reached a historic milestone in 2023 by contributing 30% of global electricity generation, and projections indicate that renewables will become the single largest source of global electricity by 2025 (IEA, 2024). This transition marks a critical turning point not only for energy markets but also for sectors deeply intertwined with energy availability and pricing, including agriculture.

Agriculture already accounts for about 5% of global final energy consumption, with energy needs spanning machinery operation, irrigation, fertilizer production, processing, storage, and transportation. As global demand for food continues to rise, population growth, urbanization, and changing diets energy use within the agricultural sector is expected to increase further. Irrigation alone, one of the most energy-intensive agricultural activities, is projected to grow substantially as climate change intensifies droughts and alters rainfall patterns. Likewise, the production of synthetic fertilizers, heavily reliant on natural gas, remains one of the largest contributors to greenhouse gas emissions.

These dynamics create a direct link between global energy trends and the affordability, sustainability, and stability of food systems. Fluctuations in fossil fuel prices whether due to geopolitical tensions, supply chain disruptions, or currency volatility translate into higher production costs for farmers and increased food prices for consumers. At the same time, reliance on carbon-intensive energy sources deepens agriculture’s environmental footprint, contributing to climate change and further threatening long-term food security.

Energy Profile of Türkiye: High Dependency Amid a Changing Landscape

Türkiye’s energy system sits at the intersection of rising domestic demand, structural constraints, and a persistent reliance on imported fuels. This dependency shapes the country’s economic stability and influences the competitiveness of almost every productive sector, including agriculture, manufacturing, and transport. Despite steady progress in renewables, the overall picture remains one of vulnerability, shaped by global price fluctuations and geopolitical uncertainty.

By 2023, Türkiye’s energy import bill had climbed to $69.1 billion, a figure that underscores how deeply external markets determine the cost of doing business domestically. Roughly 70% of the country’s primary energy supply is sourced from abroad, leaving the national economy exposed whenever international oil and gas prices spike or regional supply chains are disrupted. This condition is not new, but the scale of demand growth driven by urbanization, industrialization, and rising household consumption has made the stakes higher. Energy-intensive industries absorb much of the shock, but the ripple effects extend broadly. Agriculture, for example, faces increased costs for irrigation pumping, cold storage, fertilizer production, and mechanization cost pressures that directly influence food prices and rural livelihoods.

Yet the landscape is not static. Türkiye has emerged as one of the more dynamic renewable-energy markets in its region, steadily expanding hydropower, wind, and solar generation capacity. During the first half of 2024, renewables supplied more than 48% of total electricity generation, marking a tangible shift toward cleaner and domestically sourced power. Solar and wind installations continue to accelerate, supported by target incentives and a mature private-sector investment pipeline. Even so, renewables have made stronger inroads in electricity than in total primary energy supply, which remains dominated by natural gas, coal, and petroleum products.

Energy Use in Turkish Agriculture: Rising Pressure on Productivity and Profitability

Energy has become one of the defining factors shaping the cost structure, competitiveness, and long-term viability of agriculture in Türkiye. Although the sector accounts for a modest share of national energy use about 4–5% of total final energy consumption according to TUIK, the impact of energy prices on agricultural performance is disproportionately large. This is because energy is embedded in nearly every stage of production: diesel powers tractors and harvesters, electricity drives irrigation pumps, cold storage, and greenhouse systems, and energy-intensive inputs such as fertilizer depend heavily on global fuel markets. When energy prices rise, agricultural costs rise with them.

Over the past decade, this relationship has become increasingly visible. From 2010 to 2020, energy use in Turkish agriculture grew by more than 40%, reflecting the expansion of irrigated land, mechanization, and controlled-environment farming. What might have been a sign of advancing productivity has instead turned into a vulnerability, as energy costs escalated much faster than farmgate prices. The combined effect of rising global fuel prices and the depreciation of the Turkish Lira sharply increased the cost of diesel and electricity the two lifelines of modern farming. For many producers, especially small and medium-scale farmers, fuel and electricity now rank among the highest recurring expenses each season.

These pressures shape production decisions in very tangible ways. High irrigation costs push farmers in arid regions toward less water-intensive crops or reduce total cultivated areas. Greenhouse producers, heavily reliant on electricity, struggle to maintain competitiveness. Diesel-intensive operations such as field crop harvesting and livestock transport become more expensive, narrowing profit margins. Ultimately, these rising energy costs contribute directly to food inflation, affecting urban consumers as well as rural livelihoods.

In this environment, energy policy and agricultural policy are inseparable. Any effort to stabilize food prices, strengthen farm profitability, or support rural development must contend with the growing weight of energy in Türkiye’s agricultural economy.

Environmental Impacts and the Efficiency Imperative in Turkish Agriculture

Energy use in Türkiye’s agricultural sector carries significant environmental implications that go beyond rising costs. Diesel-powered machinery, electricity generated largely from fossil fuels, and energy-intensive inputs contribute to air pollution, carbon emissions, and the depletion of natural resources. Agriculture is caught in a dual reality: it is increasingly threatened by climate change through droughts, heatwaves, and erratic rainfall while simultaneously adding to the very pressures that drive these changes. This circular vulnerability underscores the urgency of improving energy efficiency across the farming landscape.

Efficiency is no longer a technical preference but an environmental and economic necessity. Research demonstrates meaningful gains from the right set of practices. Conservation of tillage, for instance, can cut tractor passes by up to 40%, lowering diesel consumption and reducing soil disturbance. Similarly, shifting from flood irrigation to drip systems improves both water and energy efficiency by more than 30%, a crucial advantage in water-scarce regions. These technologies not only conserve resources but also reduce greenhouse gas emissions, creating a direct link between farm-level decisions and national climate goals.

Solar-powered irrigation is another promising avenue gaining momentum. As electricity costs rise, solar pumps offer farmers predictable energy expenses, reduced dependence on the grid, and lower long-term operating costs. The combination of renewable energy with efficient irrigation has the potential to transform small and medium-sized farms, enabling them to sustain yields with fewer environmental impacts.

Moving forward, the path to a more resilient and competitive agricultural sector hinges on a multi-layered strategy. Expanding incentives for solar and biogas systems can turn farmers into energy producers rather than passive consumers. National extension services must lead the shift toward precision agriculture, modern machinery, and efficient water management. Finally, stronger research and development investments are essential for scaling locally suited, low-energy technologies and climate-resilient crop varieties. Together, these measures can place Türkiye on a more sustainable and secure agricultural trajectory.

Conclusion

Türkiye’s agricultural sector is standing at a turning point where rising energy costs, environmental pressures, and structural vulnerabilities intersect. The growing reliance on diesel, electricity, and natural gas has made farming increasingly expensive and exposed to global price shocks, eroding profitability for smallholders and larger producers alike. These cost pressures ripple across the food system, shaping what farmers grow, how much they invest, and ultimately what consumers pay. At the same time, the sector’s heavy use of fossil fuels deepens its environmental footprint, accelerating soil degradation, water stress, and greenhouse gas emissions problems that climate change is already amplifying.

Yet the challenges outlined in this analysis also reveal a clear pathway forward. By embracing energy-efficient technologies, investing in renewable energy solutions, and modernizing production systems, Türkiye can reduce vulnerability while strengthening both competitiveness and sustainability. Solar-powered irrigation, conservation tillage, precision agriculture, and biogas systems are not abstract aspirations; they are practical tools that can lower costs, stabilize yields, and reduce environmental harm. Achieving this transition will require coordinated policy support, accessible financing, and targeted technical guidance for farmers.

References: FAO; IEA; MENR; Özalp et al; TUIK; World Bank.

Please note that the views expressed in this article are of the author and do not necessarily reflect the views or policies of any organization.

The writer is affiliated with the Department of Agricultural Economics, Selcuk University, Konya-Türkiye and can be reached at mdirek@selcuk.edu.tr

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