NOTES ON FRENCH AGRICULTURAL PROSPECTS, 1952/53

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Collection: 
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP78-01617A003900120003-3
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RIFPUB
Original Classification: 
K
Document Page Count: 
10
Document Creation Date: 
December 27, 2016
Document Release Date: 
August 19, 2013
Sequence Number: 
3
Case Number: 
Publication Date: 
June 1, 1950
Content Type: 
MISC
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PDF icon CIA-RDP78-01617A003900120003-3.pdf393.31 KB
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Declassified and Approved For Release 2013/08/19: CIA-RDP78-01617A003900120003-3 NOTES ON FRENCH AGRICULTURAL PROSPECTS, 1952/53 Although French agriculture can plan an important role in helping not only France but Western Europe attain viability, progress toward this objective has been hesitant. Slowness in reparcelling the land, increasing the effectiveness of the extension service, and utilizing French agricultural resources to the full have so far held France back from achieving prewar agricultural production levels. While progress continues in some direction, it is iii1ikely that French production and export goals for 1952/53 will be met. I. Background During the 19301s, France was virtually self-sufficient in bread grains, meat and milk products, but dependent on imports for fats and oils and livestock feed. French agricultural exports were largely limited to wine, liquors, canned goods, and in years of surplus, wheat. The total French agricultural exports paid for a moderate proportion of agricultural imports. Domestic consumption levels, both quantity and quality wise, were probably inferior to Northern Etropen countries, but statistics are weak on this point because of the under-reporting by French farmers. Despite the fact that French land fertility, rainfall and temperature conditions are among the most favorable to agriculture in ? Europe, French agricultural performance fell below that of her Western European neighbors during the 19301s. Yields were lower, ast fertilizer was less and scientific farm management and mechanization A lagged behind that of her northern neighbors. Many of the basic difficulties persist at the present time. Declassified and Approved For Release 2013/08/19: CIA-RDP78-01617A003900120003-3 Declassified and Approved ForRelease2013/08/19 : CIA-RDP78-01617A003900120003-3 The organization of the land.into farming units is considered poor* As much as one-fifth of the land is cultivated by farm units of less than 10 hectares. Each farm unit frequently consists of many/nn - contiguous parcels and approximately half the land requires reparcelling in order toechieve optimum economic farm units. France is still less mechanized that the U.K., Italy, Netherlands, and Switzerland. Fertilizer use continues to be among the lowest in Europe. The French agricultural plan is grappling with these and other agricultural problems. II. French Agricultural Goals During the period of total national planning after the war, the Monnet plan :for agriculture was borne. The plan, which emerged from grass root sentiment and top level thinking, envisaged an increase in production of 25 percent over 1938* Table I shows some of the French agricultural goals as recently reformulated. As can be seen from the table, production rises were envisaged in all items. (except oats, which were to be reduced because of the:expected decrease in horse D'opulation) primarily byihcreasing yields. Yields were to be raised bygreatly increasing application of fertilizer (see table-II) reparcelling the land, mechanizing, using scientific methods, and increasing farm facilities. The incentive to these improvements was to be provided by government assurances of steady markets, price supports, and loans at low rates of interest. The total investment outlay over a four year period was to beeround 500 billion francs. The agricultural plan has been under constant review, and goals and planned methods have been altered in line with changed economic conditions. Table III presents the capital investment plan as of 1949, but this program is being steadily outmoded.. At the present time, Declassified and Approved For Release 2013/08/19: CIA-RDP78-01617A003900120003-3 i Declassified and Approved For Release 2013/08/19: CIA-RDP78-01617A003900120003-3 -3- the agricultural ministry is thinking in terms of expanding agriculture more than previously planned, in, view of the foreseen difficulties in marketing industrial products abroad. . The primary objective of the agricultural policy. was to convert the pre-war agricultural deficit on the international accounts into a substantial surplus, (313 million dollars by 1952/53), although the objective of increasing consumption was not lost sight of. Export goals were placed at: 1,500,000 tons of wheat 120,000 tons of meat 21,000 tons of butter 21,000 tons of cheese plus traditional exports. III. Evaluation of Plan and Pro ress to Date Genez!al The role that could be played by French agriculture in strengthening the economic and political organization of the Western world is only now being fully understood. In view of the probable oversupply of steel, machinery, chemicals, and other industrial products in relation to the markets open to Western European countries, and in view of the undersupply of agricultural goods in the U.K., and Trizone, an expansion of French agricultural production is probablr called for. In order to fulfill its role as an agricultural supplier, however, France may need to find ways to lower the foreign sales price of agricultural goods. French planning to date in agriculture has not been revolutionary, although it may appear ambitious in view of the prewar French trends* Declassified and Approved For Release 2013/08/19: CIA-RDP78-01617A003900120003-3 . Declassified and Approved For Release 2013/08/19: CIA-RDP78-01617A003900120003-3 The yields planned are not large when compared to the achievements of Belgium, Netherlands, U.K. etc. The amount of planned fertilizer use is moderate compared to the quantity which could be used with profit to the farmer. A considerable amount of potentially tillable soil will still be left unused, ad grasslands will be used only imperfectly. The revolutionary implications of hybrid corn are not completely appreciated as yet. The part that could be played by permanent grassland, when properly cared for is also slighted. - B. Techniques Reparcelling of land is woefully behind the Monnet Plan schedule. Reparcelling, which has been going onfbr 100 years in France is a time consuming process, in all events. With the present administrative staffs, it is expected that only a small part of the land will be reparcelled by 1952/53. Fertilizer use is far behind schedule. See Table A-7 in the French Data Book. Fertilizer consumption in 1948-49 crop year was about equal to that in 1947-48, despite the greater availabilities of fer- tilizer. The consumption trend continues poor in the last few months. Factors responsible are the high cost of fertilizer, the lack of market assurances for agricultural goods, the lack of an adequate extension service toteach the value of fertilizer use and the shortage of funds in the hands of the farmer. Although the government is considering lowering the tax on fertilizer products to reduce their costs, only slow progress is expected in fertilizer use. Declassified and Approved For Release 2013/08/19: CIA-RDP78-01617A003900120003-3 Declassified and Approved For Release 2013/08/19: CIA-RDP78-01617A003900120003-3 ? Tractor production is now substantially below the peak production reached in March 1949, and farmers are purchasing few tractors. The French 1952 goal of 200,000 tractors on the farms may well be too high. Because of the slow pace of reparcelling, the opportunity for tractor use is still limited in France, and the French farmers frequently prefer to retain their horses even after purchasing tractors in view of uncertainty in gasoline supply and price. The Extension Service is being expanded in 1950, but American observers believe that the Extension Service should be expanded still more. It is believed that the quality and size of the Extension Service will remain inferior to French requirements. - Price supports continue on several agricultural commodities (grain, beets, oil bearing plants) and the levels will undoubtedly be raised in line with cost conditions. Prices cannot obviously be raised more quickly than the general increase in worker's income without causing labor antagonism. In summary, it appears that progress in implementing the agricultural program is very slow. C. Production, Yields, and Acreage Production of cultivated crops is highly dependent on weather conditions, and accurate predictions on production cannot be made. Live- stock and dairy production is somewhat less dependent on weather. Out.. side of weather, the second major determinant of production is the probably market conditions. The internal market conditions will depend largely upon the growth of industrial production, since that factor will determine the purchasing power of the city dwellers. This rise will tend Declassified and Approved For Release 2013/08/19: CIA-RDP78-01617A003900120003-3 . Declassified and Approved For Release 2013/08/19: CIA-RDP78-01617A003900120003-3 -6. to be quite moderate. The external market depends largely on the economic organization of Europe. OIR feels considerable progress will be made in the direction of increasing trade among the Western European countries through the formation of the En regional industrial and agricultural pooling agreements, and the dollar shortage. Considering total agricultural pro. duction, it is believed, on the basis of present trends, that the index of agricultural production will not greatly exceed 110 in 1952/53 (1938 m 100) compared to 96 in 1949. Baring bad weather, domestic food consumption should rise equally with industrial production, or at about the rate of 3 percent per year. Declassified and Approved For Release 2013/08/19: CIA-RDP78-01617A003900120003-3 Declassified and Approved For Release 2013/08/19: CIA-RDP78-01617A003900120003-3 TABLE I THE HECTARE, YIELD AND PRODUCTION OBJECTIVES FOR 1952 OF THE AGRICULTURE PROGRAM AND PERFORMANCE PREWAR AND 1949 (Surface in thousands of hectares) Meld in quintals per hectare) (Production in thousands of quintals) Indies 1 8 1949 Estim te 1 2 1934-38 2 100) 1 Wheat Surface Yield ?roduction 5,224 15.6 81,432 4,223 1.3 80,820 4,660 20.2 95,000 80.0 '21.2 96.9 89.2- 129.5 116.7 Oats . Surface 3,278 2,436 2,350 72.5 71.7 , Yield 13.9 13.2 17.1' 95.0 123.0 PrOdUction 45,717'..:32,250 40,120 68.4 87,7 Barley Surface 742 896 1,250 118.5 168.5 Yield 14.1 16.0 18.3 114.2 129.8 Production 10,741 14,310 22,900 131.5 213.2 Oil Seeds Surface 15 185 246 123.3 164.0 Yield 12 10 14 83.3 116.7 Production 180 1,857 3,450 1031.7 1916.7 Grassland Surface 3,027 3,075 3,300 101.6 109.0 Yield 35.5 29.1 44.8 82.0 126.2 Production (Hay)107,552 89,402 148,000 83.1 137,6 Temporary Grassland Surface 557 978 950 175.6 170.6 Yield 30.1 21.0 35.8 69.8 118.9 Production (Hay) 17,396 20,563 34,000 118.2 195.4 Forage Surface 709 767 860 108.2 121.3 Yield 32.8 25.5 48.4 77.7 147.6 Production (Hay) 23,912 19,577 41,500 81.9 173.5 Sugar Beets Surface 318 391 400 122.9 125.8 Yield 276 227 307 82.2 111.2 Production 87,858 88,686 123,000 100.9 140.0 Declassified and Approved For Release 2013/08/19: CIA-RDP78-01617A003900120003-3 Declassified and Approved For Release 2013/08/19: CIA-RDP78-01617A003900120003-3 ABLE II (continued) Indica 1949 I t (1934-38 100 ? ? 1 2 Milk . . Production 146 170 -a 116.4 Meat Production 1,700 1$942 2$200 114.2 129.4 Oils and Fate Production 325 470 540 144.6 166.1 ' Sugar Production 767 750. 1,300 97.4 169.5 Declassified and Approved For Release 2013/08/19: CIA-RDP78-01617A003900120003-3 Declassified and Approved For Release 2013/08/19: CIA-RDP78-01617A003900120003-3 TABLE II CONSUMPTION OF FERTILIZER (In Millions of Tons) Actual Cons= tion nedConmtjon i938-39 19L6-h7 19A7-48 ].948-h.9 1949.50 l95..5L Nitrogen (N) .2180000 180,000 222,000 300,000 340,000 450,000 Phosphate (P205) 425,000 325,000 418,000 500,003 600,000 800,000 Potassium (K20) 293,000 305,000 366,250 450,000 600,000 700,000 Declassified and Approved For Release 2013/08/19: CIA-RDP78-01617A003900120003-3 . Declassified and Approved For Release 2013/08/19: CIA-RDP78-01617A003900120003-3 TABLE III NET INVESTMENTS PLANNED FOR AGRICULTURE 1949...1952 (Billions of francs) I. For the Farm Consolidation of Land Parcels Land Improvement Roads Rural Construction Additions to Water Supply Electrification 8 25 31 40 15 Forest Equipment 20 Extension Services 10 Biological Equipment 55 Purchase of Agri. Machines 255 Cooperatives (milk stations, 31 fruit stations, silos, sugar refineries, others) II. Equipment of Industries Milk Slaughter houses Sugar Refineries Others Food industries Refrigerating Equipment III. Other (Nitrogen Fertilizer, Agricultural Machinery) 499 9 16 30 3 28 L.14 100 610 Declassified and Approved For Release 2013/08/19: CIA-RDP78-01617A003900120003-3