SOVIET GRAIN HARVEST IN 1963

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Document Number (FOIA) /ESDN (CREST): 
CIA-RDP79T01003A001800240003-3
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RIPPUB
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C
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8
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November 16, 2016
Document Release Date: 
April 6, 2000
Sequence Number: 
3
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Publication Date: 
January 1, 1964
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BRIEF
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Approved For Release 2000/05/12 : CIA-RDP79TO1003AO01800240003-3 CONFIDENTIAL Current Support Brief SOVIET GRAIN HARVEST IN 1963 CIA/RR CB 64-4 January 1964 CENTRAL INTELLIGENCE AGENCY Office of Research and Reports CONFIDENTIAL Approved For Release 2000/05/12 : CIA-RDP79TO1003AO01800240003-3 Approved For Release 2000/05/12 : CIA-RDP79TO1003AO01800240003-3 WARNING This material contains information affecting the National Defense of the United States within the meaning of the espionage laws, Title 18, USC, Secs. 793 and 794, the trans- mission or revelation of which in any manner to an unauthorized person is prohibited by law. Approved For Release 2000/05/12 : CIA-RDP79TO1003AO01800240003-3 Approved For Release 2000/05/12 : CIA-RDP7 T 1003A001800240003-3 C-O-N-F-I-D-E-N-T- - SOVIET GRAIN HARVEST IN 1963 Over the past 5 years this Office has contended that there a are ag nd s exaggerations in the USSR' s official statistics for grain producon that the Soviet agricultural situation was generally worse than po ertrayed by the Kremlin leadership and the Soviet press. Pravda suggests that the USSR may soon publish the most accurate esti- mate of grain production that has appeared since 1957 - a figure for 1963 which differs greatly from official frSoviet estimates of om the independentacalOulatons and November but which may not differ of this Office by much more than 5 percen. exaf ggsuch erataonls in theseCgralin announced, it is possible that in the futur production statistics, which this Office believes have persisted since 1958, may be substantially eliminated. In a speech before the Supreme Soviet (published in Pravda on Chairman of the Economic Com- mission December 1963), 0. 1. Ivashchenko, uan- mission of the Council of Nationalities, revealed that the average q tity of grain obtained during the period 1959-63 was about 15 e million r iod metric tons above the annual average of the previouso5 ein 1963 rs cal- (1954-58). On the basis of this disclosure, p mrage ometric tons or the 117 culated to be either about 93 million metric tons depending on certain assumptions regarding Ivashchenko's statistics. However, figure does not differ gre a t y from figure is more likely. This lower gu the recent estimate of this Office for 1963 of about 100 million tons; however, the 93 million figure (as well as the less likely alternative ent of 117 million) is in sharp contra sttof 132 m llionlort1331mi11ionhrnetric Soviet officials indicating a harve tons. Technical changes in statistical reporting as well as outright dis- tortion and falsification at various levels in Soviet agriculture may pos- sibly have delayed the leadership's appreciation of the full extent of the 1963 crisis in grain production. Falsification fPlenumin agriPacultural Co tgol was a major issue in the January 1961 g Commissions established in po1962 were ssible that their afindings may leadlto a substan- malpractices, and it is posse tial moderation in the statistical exaggerations that have persisted in Soviet agriculture over the past 6 years. C-O-N-F-I-D-E-N-T-I-A-L Approved For Release 2000/05/12 : CIA-RDP79T01003A001800240003-3 Approved For Release 2000/05/12 : CIA-RDP79TO1003AO01800240003-3 C-O-N-F-I-D-E-N-T-I-A-L 1 ? Recent Official Statement on Grain Production Ivashchenko has recently stated in a speech before the Supreme Soviet that the average quantity of grain harvested the first 5 years (1959-63) of the Seven Year Plan was 900 million poods (about 15 mil- lion metric tons) more than the average amount obtained annually during 1954-58 (Pravda, 17 December 1963). Calculations based on this statement give a much lower grain harvest for the USSR in 1963 than that indicated in earlier statements by Soviet officials. The implied grain production in 1963 was only about 93 million metric tons if Ivashchenko's figures include corn in the milky-waxy stage of maturity in line with normal Soviet statistical practice. If corn in the milky-waxy stage of maturity were excluded in his statistics, the derived production figure for 1963 would be about 117 million metric tons. The current estimate of this Office of the harvest of grain in 1963 -- arrived at independently -- is about 100 million metric tons.""" Ivashchenko's disclosure is in sharp contrast to previous Soviet statements about the 1963 grain harvest. In October, Volovchenko, the Soviet Minister of Agriculture, indicated that the grain crop for 1963 would be about 133 million metric tons. In a speech on 6 November, N. V. Podgorny estimated that the harvest would be about 132 million metric tons. During a recent discussion between the US agricultural attache in Moscow and representatives of the Soviet Ministry of Agriculture, the Soviet officials indicated simply that a calculated figure of 93 million tons of grain was "too low. " The official reaction, however, apparently was not so strong as might have been expected in view of the approxi- mately 40-million-ton difference between this figure and the 132 million to 133 million tons referred to above. :[f Ivashchenko's statement is not a misprint or a garble (and these are rare indeed in Pravda), it may be an indication that, beginning with the 1963 crop, the USSR is taking steps to eliminate the overestimation that this Office believes has characterized statistics on grain production since 1957. The need to import unprecedented quantities of wheat in For methodology, see the Appendix. ** All of these production estimates million, and 100 million) were computed to include corn rin tmetric tons, 117 he milky-waxy stage. Approved For Release 2000/05/c2 #GNQ-RoR7-9 M(9A9Q11$CV2f0003-3 Approved For Release 2000/05/12 : CIA-RDPT9 0 003A001800240003-3 C-O-N-F-I-D-E-N-T-- - 1963-64 -- grain that the USSR probably would not have had to import if the actual quantities of grain harvested during 1958-62 had been as great as were claimed -- may have revealed to Soviet leaders for the first time the degree of overestimation in their grain statistics and the prob- lems that can be caused by such erroneous data. 2. Comparison of Soviet and ORR Estimates Before 1958, there was a close correlation between the estimates of grain output calculated by this Office and official reports of the Soviet government. However, beginning with 1958, official Soviet data on grain production indicate harvests considerably higher than those that could have been expected under the given combination of acreage and weather conditions, and Soviet claims since that time have been con- siderably higher than the calculations of this Office. A comparison of Soviet claims and the estimates of this Office is given in the following tabulation: Million Metric Tons ORR Estimate as Percent of iet Claim S ORR Estimate Soviet Claim Year ov 1958 141 125 89 1959 126 100 79 ig6o 134 100 75 1961 138 115 83 1962 148 115 78 1963 133* 100 75 The overstatement of the grain harvests in the Soviet claims prob- ably is attributable to several factors. First, an unpublished instruction of the Central Statistical Directorate in April 1958 may have changed radically the methodology used in determining the size of the grain har- vest -- that is, a change in the definition of grain production. Second, statistical malpractices by officials at various administrative levels cumulatively may have produced substantial upward biases or over- estimations in the figures for the total grain harvest. These statistical malpractices were fostered by the dissolution of the machine tractor stations in 1958 and the resulting loss of an effective statistical control * Volovchenko's estimate referred to above. C-O-N-F-I-D-E-N-T-I-A-L Approved For Release 2000/05/12 : CIA-RDP79T01003A001800240003-3 Approved For Release 2000/05/12 : CIA-RDP79TO1003AO01800240003-3 C-O-N-F-I-D-E-N-T-I-A-L mechanism. Also, officials at the various administrative levels in the USSR have been under extreme pressure to show positive results as the Seven Year Plan progressed. In most sectors of agriculture, progress has, `been extremely difficult because 1958, the base year of the plan, was an excellent crop year. The scandalous extent to which statistical falsification in agriculture had grown was revealed at the January 1961 Plenum and in the months just following that Plenum. Although statistical malpractices were re- ported from virtually every region in the USSR, there were practically no adjustments or downward revisions in the national statistics on agri- cultural production. On the contrary, a justification for not adjusting these statistics was published in the Soviet statistical journal Vestnik statistiki in June 1961. The Party-State Control Commissions, established in 1962, may have been instrumental in determining the extent of statistical exaggera- tion in agriculture. If so, it is possible that grain statistics will be more accurate beginning with 1963 and that a corrected statistical series will be issued covering 1958-62. A Soviet statistic released just before this report went to press tends to confirm that the USSR may admit to a very low grain harvest in 1963, although it is not possible to judge just how lowfrom the sta- tistic. An article in Pravda of 13 January 1964 stated that gross agri- cultural production increased 50 percent in 1963 compared with 1952. This is much lower than a figure given by Party Chief N. V. Podgorny who, in a speech on 6 November commemorating the October Revolution, stated that agricultural output had increased by 70 percent in the last 10 years. If, in fact, the final Soviet statistic is 50 percent, it implies a drop of about 9 percent in output in 1963 compared with 1962. Whereas no precise comparison can be made, the preliminary estimate of the index of net agricultural production by this Office indicates a substanti- ally smaller decline than this. This decrease was due primarily to the very poor grain crop. Analyst: Approved For Release 2000/05/12 ~Ik-PbPlS'?Q'1'603 OT3T60 003-3 Approved For Release 2000/05/12 : CIA-RDP79TO1003AO01800240003-3 C-O-N-F-I-D-E-N-T-I-A- APPENDIX METHODOLOGY Soviet statistics on grain production generally include immature corn in the milky-waxy stage converted to a dry grain equivalent. In Soviet sta- tistical handbooks, however, a double series of statistics on grain produc- tion is published. One series includes the immature corn converted to dry grain, and the other excludes the immature corn. From Ivashchenko's statement it is possible to derive two separate and widely divergent estimates of the total grain harvest for 1963. One estimate would be based on the assumption that Ivashchenko's figures in- cluded corn in the milky-waxy stage; the other would assume that he ex- cluded it. These calculations are presented below: Case No. 1 (Including Immatur_ e Corn) Period Harvest (Million Metric Tons) (a) 1954-58 average (official, including 113.24 immature corn) (b) 1959-63 average (based on Ivashchenko) 127.98 90 639 (c) 1959-63 total (5 times 127.98) . 42 546 (d) 1959-62 total (official)* . (e) 1963: (c) minus (d) Case No. 2 (Excluding Immature Corn) Period Harvest (Million Metric Tons) (a) 1954-58 average (official, excluding 31 11 00. 31 immature corn) ) 11 (b) 1959-63 average (based on Ivashchenko (c) Average annual output of immature . 7,60 corn, 1959-62 ture i mma (d) 1959-63 average (including 132.65 corn: (b) plus (c) 6 663.25 5) (e) 1959-63 total (5 times 132. 546.42 (f) 1959-62 total (official)* (g) 1963: (e) minus (f) Total derived by adding official production figures (including immature corn) for each year in this period. C-O-N-F-I-D-E-N-T-I-A-L Approved For Release 2000/05/12 : CIA-RDP79TO1003AO01800240003-3 Approved For Release 2000/05/12 : CIA-RDP79T01003A001800240003-3 CONFIDENTIAL CONFIDENTIAL Approved For Release 2000/05/12 : CIA-RDP79T01003A001800240003-3