IRAN: IMPACT OF REVOLUTION AND WAR ON AGRICULTURE

Document Type: 
Collection: 
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP09-00438R000101150001-1
Release Decision: 
RIPPUB
Original Classification: 
S
Document Page Count: 
19
Document Creation Date: 
December 27, 2016
Document Release Date: 
September 5, 2013
Sequence Number: 
1
Case Number: 
Publication Date: 
September 1, 1981
Content Type: 
REPORT
File: 
AttachmentSize
PDF icon CIA-RDP09-00438R000101150001-1.pdf786.67 KB
Body: 
Declassified in Part - Sanitized Copy Approved for Release 2013/09/05: CIA-RDP09-00438R000101150001-1 Foreign Assessment 25X1 Center Iran: Impact of Revolution and War on Agriculture An Intelligence Assessment 25X1 Secret GS 81-10220 September 1981 Copy 431 Declassified in Part - Sanitized Copy Approved for Release 2013/09/05: CIA-RDP09-00438R000101150001-1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2013/09/05: CIA-RDP09-00438R000101150001-1 Declassified in Part - Sanitized Copy Approved for Release 2013/09/05: CIA-RDP09-00438R000101150001-1 Declassified in Part - Sanitized Copy Approved for Release 2013/09/05: CIA-RDP09-00438R000101150001-1 National Foreign Assessment Center Iran: Impact of Revolution and War on Agriculture An Intelligence Assessment Information available as of 22 September 1981 has been used in the preparation of this report. This assessment was produced in the Foreign Agriculture Branch of the Environment and Resource Analysis Division, Office of Geographic and Societal Research. It was coordinated with the Offices of Economic Research and Political Analysis and with the National Intelligence Officer for the Near East and South Asia. Comments and queries may be directed to the Chief of the Foreign Agriculture Branch, OGSR, Secret GS 81-10220 September 1981 25X1 25X1 25X1 nprlaccifiec-1 in Part- Sanitized Copy Approved for Release 2013/09/05: CIA-RDP09-00438R000101150001-1 Declassified in Part - Sanitized Copy Approved for Release 2013/09/05: CIA-RDP09-00438R000101150001-1 Secret Figure 1 I I Main agricultural area = Rainfall in millimeters ??? Province boundary 629919 6.81 \. ? in ? HOR G N AN Secret ii 40,L BALOCHESTANc. VAMSTAN ? Declassified in Part - Sanitized Copy Approved for Release 2013/09/05: CIA-RDP09-00438R000101150001-1 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2013/09/05: CIA-RDP09-00438R000101150001-1 Iran: Impact of Revolution and War on Agriculture Secret 25X1 25X1 Because of unusually good weather this year, Iranian farmers will harvest a grain crop about equal to the average of the past six years. Nevertheless, domestic chaos and?to a lesser extent?the war with Iraq have seriously impeded Iran's agricultural performance and are pushing the country still further from food self-sufficiency. Domestic food production is inadequate for many reasons, among them: ? Agricultural development took a back seat to industrialization during the Shah's reign, leaving the country poorly prepared to cope with rising food demand. ? Despite an announced intention of emphasizing agricultural develop- ment, the revolutionary turmoil in Iran has prevented the current government from adopting?much less implementing?effective and coordinated agricultural policies. Conflicting views about what ought to be done, the complex, volatile political situation, and a lack of adminis- trative experience and agricultural knowledge among government leaders will probably prevent the development and implementation of such policies for some time. ? Although most of the fighting with Iraq has occurred in regions unimportant to agriculture, the war drains manpower from the agricul- tural sector and has led to a 15-percent reduction in the area sown to crops. ? A domestic marketing system that allows middlemen to reap most of the benefits of rising food prices provides little incentive for Iran's farmers to increase output. ? Even when crop surpluses are generated, the underdeveloped transporta- tion and distribution systems cannot bring much of the extra food to the cities where it is needed. In the face of these constraints, rapid population growth?especially in the cities?has resulted in an increasing demand for food that can only be met through rising imports. During 1981 Iran is expected to import a record iii Secret GS 81-10220 September 1981 Declassified in Part - Sanitized Copy Approved for Release 2013/09/05: CIA-RDP09-00438R000101150001-1 Declassified in Part - Sanitized Copy Approved for Release 2013/09/05: CIA-RDP09-00438R000101150001-1 Secret $3.3 billion in agricultural products, including more than a million tons of US grain, which Iranian consumers prefer to grain from other foreign sources. Next year, Iran is likely to import some $3.8 billion in agricultural products, as much as 15 percent of which might come from the United States. As long as the country's oil revenues continue at their present levels, Iran can afford to pay for these imports, but only at the cost of for- going imports of other goods the country also needs. Secret iv Declassified in Part - Sanitized Copy Approved for Release 2013/09/05: CIA-RDP09-00438R000101150001-1 25X1 ? 25X1 Declassified in Part - Sanitized Copy Approved for Release 2013/09/05: CIA-RDP09-00438R000101150001-1 3 ecru Iran: Impact of Revolution and War on Agricultur. The call for revitalization of agriculture, a major theme in Iran since the overthrow of the Shah, is an outgrowth of discontent with the Shah's faltering agricultural policies and Iran's growing dependence on food imports. A net food exporter in the 1960s, Iran became a major importer by the mid-1970s. The increase in grain imports was especially pronounced, reflecting burgeoning demand and slow growth in production. With population increasing at a rate close to 3 percent annually, agricultural growth must accel- erate if a continuing rapid increase in import require- ments is to be averted AIthough the Iranian revolution was rimarily an urb n-based mov,eme t, it drew aVentio to thepoliti- cal plications Of Iran's agriculfural problems'. On- der th Shah, a ricultu al growth lagged Iar bi'ehind that of dustrj, resultin in a 4,idening in lone gasp between he tvfo sectors. 1his ?sparity contributed to a rural ex , estimated a 0,000 annuaiq in the early 1970se thszaaact dcpanst.r.ation 'Background Th 'e environmental conditions in most of Iran are not favorable for farming. Less than a quarter of the country has the potential to produce crops, and less than 10 percent of the land is in crops at any one time. Each year40 to 75 percent of the total cultivated area is left Okiw to permit the soil to absorb moisture and regain fertility. Only the Caspian coast and the western mountairranges receive enough rainfall to support nonirrigated\agriculture. The most productive croplands are in the riir.thern and western provinces. In the west, most of the i.recipitation falls in the winter and early spring, in a attern advantageous to winter grain production. Staple Crops. Iran's principal cropsNare wheat and barley, predominantly winter varieties. These grains are usually grown on three-fourths of th ,available 1 25X1 25X1 lAnd and account for approximately two-fifths of the tiAtal value of crops produced. Wheat is the country's bAic food, accounting for at least half of the energy value in the diet; of late, it has become even more important because shortages and higher prices of other foods are increasing the demand for bread. Bar'ley is the major feedgrain 25X1 Live tock The livestock industry plays an important 1 role in the Iranian economy, normally contributing 1 approixmately 40 percent of the value of total agricul- tural Output. Historically, the wealth of many peas-25x1 ants was primarily in the form of animals, and Iran exportea many sheep products. Animal products con- tributed nly 8 percent of the energy value in the Iranian d'et in 1975-77, compared with 12 percent in \ Pakistan and 10 percent in Turkey, but demand has been risir4 sharply, especially in the cities. Production of meat?kher than poultry?has not kept up, and Iran has ba\ome a net importer of meat. Poultry production expanded rapidly in the 1960s and 1970s, and by 1979 accounted for about a third of total meat production. 1 25X1 The performance of the livestock sector in recent years reflects poor feeding and shelter conditions, which make the ai4mals susceptible to disease. By the mid-1970s, 80 perce\nt of the pasturage in Iran was overgrazed, reflecting the fact that it was supporting more than twice the livestock population that proper range management Would dictate. Former nomads who had been encour4ed to settle in permanent locations increased thesanimal density on the lower, better quality rangelands. The remaining nomadic herders were forced to use the more marginal land at higher, drier altitudes ancl\to take longer treks with their animals?factors that\caused higher mortality and lower breeding rates. T maintain production 25X1 levels, these herders increasel the size of their flocks, accelerating the deterioration \of the range. Secret 25X1 Declassified in Part - Sanitized Copy Approved for Release 2013/09/05: CIA-RDP09-00438R000101150001-1 Declassified in Part - Sanitized Copy Approved for Release 2013/09/05: CIA-RDP09-00438R000101150001-1 0CLI Figure 2 Iran: Simplified Grain Crop Calendar Wheat. Winter Spring Barley Winter Spring Rice Unclassified Jan Feb Mar Apr May Jun Jul Aug .Sep Oct Nov Dec Fallow' Planting Growth Harvest Dormancy 584788 8-81 Secret 2 Declassified in Part - Sanitized Copy Approved for Release 2013/09/05: CIA-RDP09-00438R000101150001-1 Declassified in Part - Sanitized Copy Approved for Release 2013/09/05: CIA-RDP09-00438R000101150001-1 Secret 44^-- Table 1 Iran: Production of Selected Crops Thousand Metric Tons 4 Average 1970-75 1976 1977 1978 1979 1980 (estimated) Wheat 4,081 5,500 5,000 5,300 5,000 4,750 Rice, paddy 1,173 1,276 1,051 1,288 1,212 1,163 Barley 933 1,150 1,100 1,000 970 1,000 Cotton 183 155 180 150 100 100 Sugar, raw 606 687 633 630 640 600 This table is Unclassified. Agricultural Practices. Mechanized equipment is concentrated on larger farms and in agricultural cooperatives. Elsewhere, most Iranian farmers use primitive methods. Traditional animal-drawn and hand-operated tools are common, and much of the grain is planted, harvested, and threshed by hand. Fertilizer and pesticides are not widely available Except in the northern and western provinces, agricul- ture depends mainly or exclusively on irrigation. Much of the surface water used for irrigation is obtained from rivers and reservoirs built in the late 1960s and early 1970s during the Shah's third and fourth five-year plans. In many areas, however, irriga- tion water is still supplied by the traditional qanats? subterranean conduits leading from a well or spring located at the base of a mountain to the fields surrounding a village. During the last two decades many qanats fell into disrepair while the government emphasized development of surface water supplies. Infrastructural Problems. Inadequate transport ham- pers Iran's agricultural output and the marketing of what is produced. In 1976 two-thirds of Iran's villages were not in the transport network used by trucks or trains, and more than a third were rarely accessible to any wheeled vehicle. Iranian farmers unable to sell their surplus output beyond their own isolated villages have little motivation to produce surpluses; they can- not even take advantage of guaranteed minimum prices by selling to the government. Even farmers who 3 can get their products to urban markets, however, receive little of the money urban consumers pay for food, for on their way to the cities agricultural products pass through many levels of traders, and each middleman gets his cut. Thus both the rural economy and the urban economy are losers: the rural sector does not benefit from rising demand?met 25X1 instead by imports?while rural stagnation limits the market for products of the urban sector 25X1 Agriculture Under the Shah The Shah's government gave priority to industrializa- tion over agricultural development. Agricultural in- vestment fell short of goals, and measures designed to modernize the sector did little to improve overall agricultural performance. Agriculture remained largely traditional, with subsistence farm families composing most of the farm population. Fewer than 15 percent of the families owning farms produced most of the marketed surplus. The number of tractor25X1 in use expanded \rapidly after 1975, but by 1978 there were still only eigjit tractors per 1,000 hectares of harvested grain area, compared with 27 in neighbor- ing Turkey. At the\me the Shah was overthrown, half of the Iranian population lived in rural areas and 40 percent of the labcA? force was employed in the agricultural sector, but \t contributed only 9 percent of the gross national pro 'duct. 25X1 Secret Declassified in Part - Sanitized Copy Approved for Release 2013/09/05: CIA-RDP09-00438R000101150001-1 Declassified in Part - Sanitized Copy Approved for Release 2013/09/05: CIA-RDP09-00438R000101150001-1 3e1.71-el Figure 3 Iran: Traditional Irrigation System (near Tehran) Uplands Water Table in RiverValley Water Production-.- Section Qanat Mother Well Shafts Water Transportation ?.- Section Spoil Heaps Canat Outlet Surface Canal Irrigated Fields Village , 411 Bedrock Nt. 'Water Table on Alluvial Fan 584790 8-81 Functioning qanat in operation. Water is flowing out of the conduit into a canal which leads to the fields. The abandoned qanat, adjacent and parallel to the active one, probably taps the same mother well. The diagram gives a cross-section of the qanat irrigation system. 25X1 25X1 584790 8-81 Secret 4 Declassified in Part - Sanitized Copy Approved for Release 2013/09/05: CIA-RDP09-00438R000101150001-1 Declassified in Part - Sanitized Copy Approved for Release 2013/09/05: CIA-RDP09-00438R000101150001-1 Slow GroW(h. During the Shah's rule, growth in agriculture 'was heavily concentrated in industrial crops, tree crops, and intensive poultry production. The overall rale of growth apparently was consider- ably lower thari\ the official figures and probably lower than the rate of\population growth. The return to most farmers from selling their surplus was not 1 sufficient to encoprage adoption of improved technol- ogy. Grain yields \fontinued to compare unfavorably with those of other Middle Eastern countries, and increases in outpuwere due largely to increases in land under cultivatkp. The government did encourage development of agribusiness enterprises to take ad- vantage of the econoTies of large-scale commercial agriculture and to attract foreign investment and technology. By the tine of the revolution, however, most of these projects hacd folded, mainly because they were mismanaged, but also because they were un- suited to local physical a\nd labor conditions Under the Shah, more tlwi a dozen large reservoir dams were constructed. Most of the land developed below these dams was lease\d to domestic and foreign agribusiness for the production of industrial crops. The dams were used primarijy to generate electricity for industrial purposes, however, and in any conflict irrigation needs were secondary. Normally, water was released through the dams during the peak electrical seasons of midsummer and midinter, rather than in spring and early summer when the farmers most needed water for irrigation Construction of grain storage facilities did little to improve the linkage between typical \f\ armers and the urban sector. A number of grain elevators were built, but most of them were located in or near large cities; a lack of roads and high transportation Costs precluded use of these elevators by most farmers. \There were few government storage facilities in the villages. (In arid areas, it must be noted, grain and dkier storable produce may be kept in relative safety for long periods in primitive storage facilities. Land Reform. The Shah's government sought to achieve a major impact in the agricultural slector with the land reform program of the 1960s and early 1970s. During the 10 years of the program, \large 5 Table 2 Iran and Neighboring Countries: Wheat Yields 100 Kilograms Per Hectare 1961-65 1975 1976 1977 Iran 8.0 7.6 9.1 8.0 Afghanistan 9.5 11.9 12.3 11.3 Iraq 7.0 6.0 8.8 8.1 Pakistan 8.3 13.2 14.1 14.3 Turkey 10.8 15.9 19.2 17.8 USSR 9.6 10.7 16.3 14.8 Armenian SSR 9.7 19.8 21.2 Azerbaijan SSR 8.4 15.3 18.1 Turkestan SSR 5.9 17.5 a 13.7 a Unknown. This table is Unclassified. 25X1 amounts of land owned by the Iranian Crown or Government-or acquired by compelling large land- owners to sell-were turned over to private families under long\ term mortgages at low interest rates. 1 Although successful in reducing the social and politi- cal power of\the semifeudal landlord class, which was viewed as obstructing modernization and economic development, \the reforms disrupted agricultural out- put. By the mid-1970s many peasants had become _ small landowners or leaseholders, but the institutional framework was inadequate. Implementation of meas- 25X1 ures intended to complement land redistribution by fostering rural cooperatives, credit and extension serv- ices, and increased. supplies of inputs, was haphazard and largely ineffective, partly as a result of a dearth of qualified administrative and technical personnel. 25X1 1 The reforms also provided for establishment of farm corporations made up ii\f farmers who had agreed to consolidate their holdings and pool their resources to mechanize their operati6s. These corporations 25X1 proved unpopular, howev\er, because individual farm- ers could not retain title to their land. Those that were formed were unable to recruit experienced managers and were largely unsuccessful. 25X1 Secret Declassified in Part - Sanitized Copy Approved for Release 2013/09/05: CIA-RDP09-00438R000101150001-1 Declassified in Part - Sanitized Copy Approved for Release 2013/09/05: CIA-RDP09-00438R000101150001-1 Belated Emphasis. Just before the Shah's overthrow, the government's agricultural modernization program was revamp' ed, and new objectives were outlined in I the sixth five-year plan (1978-82). A major goal of the plan was toI put the country on the road to achieving self-sufficieIIncy in grain production by 1990. Among other provislions, the plan gave greater emphasis to agribusiness and tagged substantial funds for rural road construction in the hope that a better farm-to- market road \network would allow small farmers to market their ?crops directly and thus receive a higher profit. Food Demand Under the Shah, domestic food production was inad- equate to meet the sharp increase in food demand spurred by rising\ incomes in a rapidly growing urban population. The r\Tsult was a remarkable rise in imports of food (ad other agricultural products). Although the Shah's overthrow was followed by eco- nomic recession, food consumption continued at a relatively high level; as did population growth, espe- cially in the cities. Higher Incomes. During the booming 1970s Iran's per capita food supplies increased more than 5 percent a year, rising from 2,339 calories per day in 1969-71 to 3,193 calories per day in 1975-77?only 5 percent below the average for dpveloped countries. Rising per capita income resulting from petroleum price hikes, together with food subsidies and price controls on food, helped to make posgible a substantial increase in food consumption, at least in urban areas. Between 1970 and 1974 Iran's per capita intake of poultry and red meat almost doubled. Higher urban incomes, however, did not bring small farmers higher prices for their produce; changes in the urban-rural terms of trade during the mid-1970s?yent against the farmers, as retail food prices were held down while rices of other commodities were perrriitted to rise. Population Growth. In addition to the impact of higher incomes, food requirements increased because of rapid population growth. After slow expansion in the first half of this century, Iran's population dou- bled in the past 25 years. During the same period the urban population more than tripled, increasing from Secret aboti a fifth of the total population in 1900-40 to roughly half of the present population of about 40 \ million,. Despite high fertility in rural areas, internal migratin holds down the annual rate of increase there to less than 2 percent, while the urban popula- tion?theegment most dependent on food imports? is currently\ growing about 5 percent a year. By 1985 the urban pppulation is projected to increase to 54 percent of the total population, which by then is likely to exceed 45 million. Rising Food Imports. During the 1970s the inability of domestic production to keep up with the growth, of food demand as reflected in soaring imports. Be- tween 1970 and\ 1975 the value of food imports rose from less than $70 million to $1.5 billion. In 1976 severe port congestion and logistical problems contrib- uted to a temporry decline in food imports, forcing a drawdown of stocks. After expansion of port facilities, however, imports in\1977-78 approached the 1975 level. The most dramatic rise\ came in grain imports, which increased from 10 percept of total food imports in 1970 to 43 percent in 1978. In the latter half of the 1970s imports accounted\for about 18 percent of wheat consumption, even though wheat is Iran's primary staple crop. Overall,, Iran has come to depend on imports for about a third\of its total food supply? and for about half of the food supply in Tehran and other large cities. During the 1970s Iranian consun;iters came to prefer grain of the types and quality supplied by the United States. Led by grain sales, the US 'ghare of Iran's total agricultural imports increased until it peaked at about 40 percent in 1975. Following the ov'erthrow of the Shah, it dropped to 20 percent in 1979Nand to less than 1 percent 'n 1980 Impact of the Revo1ition After the overthrow \f the Shah, the new government cut back sharply on al food imports?not just those from the United States. he revolutionary regime apparently assumed that, keed of the Shah's restrain- ing hand, Iran's farmers wo ld quickly increase their 6 ?25X1 25X1 25X1 25X1 25X1 25X1 2bAl Declassified in Part - Sanitized Copy Approved for Release 2013/09/05: CIA-RDP09-00438R000101150001-1 Declassified in Part - Sanitized Copy Approved for Release 2013/09/05: CIA-RDP09-00438R000101150001-1 ? Figure 4 Iran: Population Growth, 1940-85 Millions 45 40 30 %./V? Table 3 Thousand Metric Tons Iran: Selected Agricultural Imports 1977 1978 1979 1980 (estimated) Total 1,277 1,206 1,200 2,000 Wheat Wheat flour a 45 52 56 42 Rice 630 367 440 470 Barley 334 467 200 600 Corn 328 283 600 897 Other cereals 233 283 50 100 Total cereals 2,797 2,709 2,546 4,109 20 ....... ..? ... z// Rural ....???????? ..... ........ .............. 10 Urban 1940 50 Unclassified 60 70 80 85 584791 8-81 output to the In 1979 and 1 was well below with agriculture, sultant food shor imports painfully sharply as breeding Anger over skyrocke street demonstrations ment relaxed its import reached a new high in 1 however, food shortages were rationed?or available egree necessary to replace the imports. 80, however, domestic food production verage as public disorder interfered especially with harvesting. The re- ges made Iran's dependence on ear. Livestock numbers dropped tock was slaughtered for food. ng food prices erupted into Tehran. Finally, the govern- estraints, and food imports 80. Despite these imports, co tinued and many items 1/43, at high prices. F-eddeffs-Leadership.?While-ettffeet-conditions ionced,,,lehr,anaglokm.a-mor.e-realistic-poliey-with jsz.u_d_t? aitaacLimper4s, the,r-egime is committed to 7 a In wheat equivalent. (1 ton of flour equals 1.39 tons of wheat equivalent.) This table is Unclassified. giving greater emphasis to domestic agriculture. Nev- ertheless, strong direction and a coordinated policy are lacking. Primary responsibility for agricultural policymaking lies with the Ministry of Agriculture and Rural Development. The top positions of the ministry, however, have been taken over by mullahs who lack agricultural expertise. For ideological rea- sons, the mullahs support a move away from the Shah's ideal of large centralized agricultural units toward support of small holdings and traditional farming. Although the Planning Authority opposes this shift, as do many technocrats within the ministry, agribusinesses and large capital-intensive projects have received little government support since the revolution, and projects under construction at the time of the revolution have been dropped or are in disarray. 25X1 In the absence of clear national policy, confusion over land ownership is widespread. Land tenure commit- tees have been set up in several areas to redistribute land that is underutilized. It is not certain whether they are taking land only from the large landholders who did not redistribute their land during the Shah's 25X1 land reform programs, or from medium and even small farmers as well. Many farmers who have not yet Secret 25X1 Declassified in Part - Sanitized Copy Approved for Release 2013/09/05: CIA-RDP09-00438R000101150001-1 Declassified in Part - Sanitized Copy Approved for Release 2013/09/05: CIA-RDP09-00438R000101150001-1 secret lost their holdings fear their land may be expropriat- ed, which inhibits them from trying to expand produc- tion. Meanwhile, mullahs?many of whom lost land as a result of the Shah's reforms?reportedly are regaining or extending their holdings Ineffective Programs. In contrast to previous practice, the government has given the provinces substantial economic autonomy, allowing them to establish their own banks and devise independent development bud- gets. In addition, the government has raised procure- ment prices, made credit available to farmers, and facilitated increased imports of seed, fertilizer, and farm machinery. Despite these measures, commercial agriculture is depressed. In 1980/81 output of cotton- seed, soybeans, and sunflower seeds?produced pri- marily by commercial farmers?dropped to less than half of that in 1979/80, probably because of the reluctance of farmers to invest and plant at previous levels. The drop led to a sharp decline in Iran's vegetable oil consumption in 1980. The government reportedly plans to promote grain production in rain-fed areas at the expense of expand- ing irrigated agriculture. Such a policy will heighten dependence on weather and aggravate the existing problems of wide annual fluctuations in yields and output. At the same time, the government is encour- aging poultry and livestock production, which will greatly expand feedgrain requirements. Breeding stock are to be imported to replace stock killed for food, even though shortages of fodder have already been reported. Finally, the government is encouraging reverse migra- tion from the cities back to the villages, but without much success. The population of Tehran and its suburbs, for example, has already ballooned to an estimated 6.7 million and is continuing to grow rapidly. A lack of incentives for farmers to stay on the land and the perception that they can make more money in urban areas?even if only in illegal activi- ties?continue to spur migration to the cities. Impact of the War The war with Iraq has depressed Iranian agriculture in a number of ways. Although most of the Iraqi- occupied region in western Khuzestan is normally not Secret cultivated, in areas near Abadan, Ahvaz, and Dezful at the eastern edge of the war zone, fields usually planted to industrial crops had to be abandoned. Sugar beet fields west of Ahvaz were intentionally flooded. Croplands near Kermanshah suffered some damage Overall, however, the war has caused rela- tive y little harm to agricultural areas. Most farmland could easily be returned to production if the war were to end n addition to the cropland lost or damaged, about 1 million hectares (15 percent of the total farmland) reportedly were not planted last fall because of the war. Many farm workers have been called into mili- tary service, which could result in a rural labor shortage. The war has also created fuel shortages that may limit distribution of the harvest. Tre716"3trreof . : ? .? - ? ? . ? - ? :14.21-4-th-e..2egsi4n ? ? - ? ? . . a .?- 6 - d to be ed 25X1 25X1 Current Statu of Crops In general, the weather this year has beei favorable for crops. In articular, precipitation has been above normal. The am n problems' have occurred, in the eastern provi ces of Kerman and Khorashn, which normally pro uce about 12 /percent of the/ total grain crop; extensi flooding in e6ly May reportedly damaged 25 p rcent of the slimmer wheat crop and 30 to 40 percent f the winter 4/heat crop in hose areas. Elsewhere, ho ever, Iran hals enjoyed weather condi- tions similar to those of neighboring Turkey and Iraq, both of which are expecting good winter grain crops. Despite the w r, this year's winter grain production is likely to be better than that of the last two years and near the avera e of the past six years.\Satellite imagery has rJealed good crop vigor levels in most of Iran's major agricultural regions. Lodging, an indica- tion of healthy Arain and good yields, Was prevalent both in western knd northeastern Iran.Vlarvesting apparently proceeded on schedule, for the most part. 8 25X1 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2013/09/05: CIA-RDP09-00438R000101150001-1 Declassified in Part - Sanitized Copy Approved for Release 2013/09/05: CIA-RDP09-00438R000101150001-1 secret 25X1 25X1 584794 8-81 In harrsted fields, shocks were often closely spaced, another indication of god crops. Outlook Although the country's agricultural performance may improve somewhat this-yea-F., Iran will nonetheless continue to rely heavily on imports to meet food requirements, since little of any increased output will reach the cities. Ofree-the-surplus-from-this-yeitr=s hav.test--is-ex-hatisted7ROWablii-before the winter is over, food shortages-should again intensify. Raving-learned its lesson, the government now gives top priority to food imports, which currently account for about 20 percent.ollaal-iftworts. Despite serious port and logistic problems, total agricultural imports 9 may- reach -$1-373-triffiryn-nr-i-9?84-arrd $3.8 billion in 1982. ong-as-4-ran-con.til at current eritaeariaffoi'd-thern7althaugh the govern- ment's de ire to achieve-self-sufficiency--ifi food pro- duClIon sti,l&sts it W6iild rather 'spend the money on 25X1 qtladr g ince the resolution of the hostage crisis, the US share of the Iranian import market has been rising again, despite the antipathy of the Iranian Govern- ment and the availability of grain from other foreign 25x1 sources. US sales of white wheat are already back to pre-1980 levels e duziag...1.98.1.414G-414444.s421-Ste4es-is--- expected-to-supply-nvarethan-1-rnillion-tonsrabout hallof Itareotatimports-of-whrSt. In 1982 the US 25X1 Secret Declassified in Part - Sanitized Copy Approved for Release 2013/09/05: CIA-RDP09-00438R000101150001-1 Declassified in Part - Sanitized Copy Approved for Release 2013/09/05: CIA-RDP09-00438R000101150001-1 3ecret Figure 6 Iran: Good Yields Expected in 1981 (Northwest Iran) ?,1.1?,1 '.I' The ? " Yt The dark red on the NOAA-6 imagery and the bright orange on the LANDSAT show examples of the good vigor levels seen throughout Iran. Reservoirs appeared full on the LANDSAT imagery, an indication of more than adequate water supplies. 584792 8-81 Secret 10 25X1 Declassified in Part - Sanitized Copy Approved for Release 2013/09/05: CIA-RDP09-00438R000101150001-1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2013/09/05: CIA-RDP09-00438R000101150001-1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2013/09/05: CIA-RDP09-00438R000101150001-1 Declassified in Part - Sanitized Copy Approved for Release 2013/09/05: CIA-RDP09-00438R000101150001-1 3ecrer share of Iran's total agricultural imports could rise to about 15 percent?worth more than $500 million?if Iran imports as much as now seems likely. Over the longer term, it is unlikely that Iran's domes- tic production will keep up with growing food de- mand?much less that Iran will achieve food self- sufficiency?as long as its political and infrastructural problems remain unresolved. Because the growth of the agricultural labor force is slowing, expansion of agricultural production will depend largely on increased productivity. That would require strong (and appropriate) policy direction in a stable political climate. Without these conditions, farmers are unlikely to invest in improved technology, and agricultural development efforts will flounder. In the livestock sector, while resolute destocking and stricter controls on range use could at least ensure a stable (if still inadequate) meat supply, a continued overgrazing of the range can only result in a further diminution of range resources and concomitant declines in livestock production. With increases in population, an emerging urban majority, and likely changes in diet in the years ahead, the outlook is for even :reater dependence on agricultural imports Secret 12 25X1 Declassified in Part - Sanitized Copy Approved for Release 2013/09/05: CIA-RDP09-00438R000101150001-1 Declassified in Part - Sanitized Copy Approved for Release 2013/09/05: CIA-RDP09-00438R000101150001-1 Secret Declassified in Part - Sanitized Copy Approved for Release 2013/09/05: CIA-RDP09-00438R000101150001-1 _