rural and urban areas have fallen as well. But there are indications that structural adjustment is not complete, as average incomes are lower and poverty rates higher in agriculture than for the economy as a whole.

In its new role, agriculture is less important as a driver of economic growth and trade, but it remains crucial to the prosperity of rural areas. Full membership in the EU would compel Turkey to implement food safety standards consistent with the _community acquis_ and to adopt the EU’s Common Agricultural Policy. As a practical matter, Turkey has already taken steps to bring domestic food safety standards in line with the EU’s, in part because meeting such standards is needed to participate fully in the markets that supply supermarkets, restaurants and agribusinesses worldwide. Consequently, for policy makers, the remaining question is whether taking the additional step of adopting domestic policy measures similar to the CAP would benefit Turkey. Based on first principles and backed by simulation results, we believe there are elements of the EU CAP that might serve Turkey well, even if progress toward EU membership stalls. In particular, it seems likely that a policy shift in Turkey away from the practice of tying assistance to the production of historically important crops in favor of the emerging EU practice of supporting farms and farmers would speed a structural adjustment process, already underway in Turkey, that works to bring average incomes in agriculture in line with the higher average incomes earned in other sectors.

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