Abstract: The Government of Turkey has embarked on structural adjustment and stabilization program of historic dimensions. The conceptual framework of this program was laid by the policy dialogue with the Bank over the last several years, which has included extensive analysis of the current agricultural support systemand recommendations on how to reform it. These recommendations have been adopted in the Government�s Letter of Sectoral Strategy Policyand formed the basis for the Agricultural Reform Implementation Project approved by the Bank�s Board and made effective in July 2001. Once completed, these reforms will help Turkey adjust itself to EU accession with more sound policies and systems. These reforms are aimed at dramatically reducing artificial incentives and Government subsidies and implementing more effective policies. In the frame of the reforms Direct Income Support System was begun to implement instead of the other support policies such as input subsidy and price supports in 2001. The reform program reduced cost of the agricultural support policies from $6 billion to $1.1 billion during the period of 1999-2001. The impact of new agricultural policy on agricultural production in case of input use level, land use and agricultural income will be examined in this study.