THE 1982 SOVIET GRAIN CROP: REASSESSING THE CIA ESTIMATE

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CIA-RDP83B00851R000400070004-2
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RIPPUB
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S
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13
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December 19, 2016
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February 20, 2007
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4
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December 1, 1982
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REPORT
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Approved For Release 2007/02/20: CIA-RDP83B00851 R000400070004 flirPptnrito of ecre '" Intelligence The 1982 Soviet Grain Crop: Reassessing the CIA Estimate Secret GI 82-10269 December 1982 Copy 4 8 3 Approved For Release 2007/02/20: CIA-RDP83B00851 R000400070004-2 Approved For Release 2007/02/20: CIA-RDP83B00851 R000400070004-2 Approved For Release 2007/02/20: CIA-RDP83B00851 R000400070004-2 Approved For Release 2007/02/20: CIA-RDP83B00851 R000400070004-2 Directorate of Intelligence 5X1 The 1982 Soviet Grain Crop: Reassessing the CIA Estimate This report was prepared by the Agricultural Assessment Branch, Office of Global Issues. Comments and queries are welcome and may be directed to the Chief, Agricultural Assessments Branch, Strategic Resources Division, OGI, on I I Secret GI 82-10269 December 1982 Approved For Release 2007/02/20: CIA-RDP83B00851 R000400070004-2 D Approved For Release 2007/02/20: CIA-RDP83B00851 R000400070004-2 Soviet Union: Major Grain Growing Regions Baltic Sea Moldova" $SS Romania MOSCOW* V e#orussi Central ter, and Spring Grains Trans- Cyprus Mediterranean Sea `~ $ tr-a Lebanon -.~-, Israel' Boundary representation is not necessarily authoritative ( Lake Balkhash China Indian Claim Approved For Release 2007/02/20: CIA-RDP83B00851 R000400070004-2 Secret Overview Information available as of 10 November 1982 was used in this report. The 1982 Soviet Grain Crop: Reassessing the CIA EstimatiI Several months ago, we estimated that the 1982 Soviet grain crop would approximate 165 million tons, somewhat above last year's crop but well below what Moscow was expecting. Although the USSR has not an- nounced the size of this year's grain harvest, remarks by Soviet officials can be interpreted as implying an output as low as 140 million tons or as high as 190 million tons. In view of this wide range and the slow pace of Soviet grain purchases, we reexamined our grain crop estimate-takin another look at the evidence 25X1 The review helped us 2C50t our assessment, but we found no reason for altering our view on the size of this year's crop. Because of the many variables involved, the 165-million- ton figure should be considered our best estimate, but one that is subject to error. The maximum range of error in our grain crop estimate over the past four years has been ? 8 percent. Secret GI 82-10269 December 1982 Approved For Release 2007/02/20: CIA-RDP83B00851 R000400070004-2 Approved For Release 2007/02/20: CIA-RDP83B00851 R000400070004-2 Approved For Release 2007/02/20: CIA-RDP83B00851 R000400070004-2 Approved For Release 2007/02/20: CIA-RDP83B00851 R000400070004-2 Secret 25X1 0 The 1982 Soviet Grain Crop: Reassessing the CIA Estimate 0 we have reviewed our analysis o this year's grain crop. The review included an evaluation of what we know about other Soviet grain crop estimates and the assessment of Postharvest indicators 1 To cross-check our estimate, we also used an alternative methodology that looks at grain production in six key areas. A Survey of 1982 Soviet Grain Crop Estimates Recent estimates of 1982 Soviet grain production range from about 140 tons to about 190 million tons (table 1). Estimates attributable to Soviet officials privy to internal information about the size of this year's crop cover the entire range of forecasts, thus providing little conclusive insight regarding the likely outcome of the harvest. Approved For Release 2007/02/20: CIA-RDP83B00851 R000400070004-2 Approved For Release 2007/02/20: CIA-RDP83B00851 R000400070004-2 Approved For Release 2007/02/20: CIA-RDP83B00851 R000400070004-2 Approved For Release 2007/02/20: CIA-RDP83B00851 R000400070004-2 Secret Table 3 USSR: Preliminary Procurement Data, 1982 Economic Estimated Percent of Oblasts Date of Amount of Region Percent of Total Reporting Procurement Procurements a Grain Production Reporting a (1971-80 Average) a Compared with the 1976-80 period. b Kustanay is the only major grain-producing oblast in Kazakhstan that has reported as of 2 November. The relationship between yield and procurements is in agreement when comparing 1981 with 1982. Our 1981 estimate for yield in Kustanay was 11 c/ha while procurements were about 3 million tons. A recent Soviet press report placed this year's yield at 13 c/ha and procurements at 4 million tons. The record amount of grain sold to the state from Kustanay is 4.7 million tons. Insufficient data available to make a valid determination. Grain Procurements We have completed an analysis of all grain procure- ments reported in the Soviet press through 2 Novem- ber. Although the level of state procurements does not necessarily relate directly to total production, it can indicate whether a region has experienced a compara- tively good, average, or bad year. The procurement data analyzed reflects reporting primarily at the oblast level. We have aggregated it by region/republic in table 3. We believe the procurement data, or in some cases the lack of it, tend to support our current production estimate: southern Volga valley are sparse; we believe that this indicates lower-than-average sales to the state In years when production was better than average in these major winter grain-producing areas, we had seen more procurement reporting by now. The lack of reporting from the Ukraine is of particular interest in that this area typically pro- duces about 40 percent of the total winter grain crop. ? Conversely, press reports indicate that the level of procurements in the northern regions of European Russia (Baltic Republics, Central, Central Black Earth, and Volga-Vyatka) is much closer to average, and in some areas even above average. Our analysis indicates that grain production in these areas will be near average or slightly above average. Approved For Release 2007/02/20: CIA-RDP83B00851 R000400070004-2 Approved For Release 2007/02/20: CIA-RDP83B00851 R000400070004-2 Table 4 USSR: Computations for Six Key Oblasts/Republic Methodology Average yield (centners per hectare) 11.5 10.8 27.1 21.4 Implied production d 184.5 182.3 (million metric tons) Actual production 186.8 181.2 Percent of error -1.2 0.6 8.6 12.7 12.7 2.5 15.7 9.0 16.3 13.5 11.0 b 7.0 5.0 4.5 17.1 16.0 3.9 19.2 12.0 b 19.7 9.5 b 15.0 b 7.0 9.0 15.3 31.7 30.7 18.1 NA 33.0 33.0 18.1 b 27.8 23.0 23.9 17.3 21.9 26.6 19.7 26.8 23.2 25.5 15.1 16.0 20.3 21.4 c 149.6 225.8 205.1 130.3 230.2 216.3 252.0 175.2 195.8 152.7 151.9 168.2 222.5 195.7 140.1 223.7 195.7 237.4 179.2 189.1 158.0 -11.1 1.5 4.8 -7.0 2.9 10.5 6.2 -2.2 3.5 -3.4 a The average yield for all grains grown in these areas correlates closely with the average all-grain yield for the USSR. b Estimate. c In late October the Soviet press reported a yield of 19.8 c/ha for 1982. d Implied production = average yield (oblasts/republic) X harvest- ed area (USSR) X 0.943 correction factor. ? Procurement information for the regions east of the Volga River-normally published by late October- is still largely unavailable Oblasts/Republic Methodology As a check on our current estimating methodology, we used an alternate method to obtain a total grain production figure for the USSR. The "Six Key Ob- lasts/Republic Methodology" suggests a total crop of about 152 million tons for this year (table 4). The five oblasts (Altay Kray, Severo-Kazakhstan, Orenburg, Volgograd, and Dnepropetrovsk) and one republic (Belorussia) used in this methodology were selected because they generally experience the types of weath- er problems and growing conditions that exist in the principal winter and spring grain regions. The total average yield for all grains grown in the oblasts/ 25X1 republic correlates closely each year with the national average yield. 25X1 Approved For Release 2007/02/20: CIA-RDP83B00851 R000400070004-2 Approved For Release 2007/02/20: CIA-RDP83B00851 R000400070004-2 Secret Table 5 USSR: Growth Environment in Six Key Oblasts/Republic Oblast/Republic Key Precipi- ETP b Soil Moisture c Month tation Winter and spring grains July July Belorussia June 75 121 36 35 July 62 146 35 30 Estimated Precipi- ETP Soil Moisture Estimated Yield tation Yield (c/ha) Beginning End of (c/ha) of Month Month 20.3 57 113 53 27 21.4 62 111 27 7 a Precipitation (measured in millimeters of rainfall). Rainfall during c Soil moisture (expressed as a percent of the soil's water-retention the critical months of June and July are vital to plant growth and de- capacity). A calculated value that incorporates precipitation and velopment. At this time of year low precipitation usually results in ETP. The lower the soil moisture, the less water available to the reduced yields. This year, precipitation was low in all spring grain plant's root system. Severe stress usually occurs when soil moisture is areas. less than 25 percent of total available soil moisture. b ETP (Evaporation Transpiration Potential). A measurement of demand placed upon the total plant system. Included in this parameter are temperature and wind movement. The higher the ETP values, the more stress the plant endures. We also have conducted a detailed 1981-82 compari- son of the growing environment in the key oblasts/ republic during June and July, the critical months during which winter and spring grains flower and yield potential is determined (table 5). In general, the comparison shows that overall growing conditions, as indicated by the combination of soil moisture, evapo- transpiration 25X1 Probability of Error Analysis Based on our track record over the past eight years, probability analysis shows that CIA estimates are within 9 percent of actual Soviet grain production two out of three times (see graph). We are within 12 percent of the reported figure 90 percent,of the time. However, the number of data points represented by an eight-year period are statistically too few to generate a true error probability curve. If applied to this year's estimate, probability analysis suggests that there is one chance out of three that we could be off by 15 and precipitation, were only slightly million tons, and one chance out of 10 that we could improved this year. In the areas where growing be off by 20 million tons. Th:s is overly nessimistic in conditions were better this year, our published est'- that errors in the early years mate of yields shows commensurate improvement 25X1 25XI Approved For Release 2007/02/20: CIA-RDP83B00851 R000400070004-2 Approved For Release 2007/02/20: CIA-RDP83B00851 R000400070004-2 USSR Grain Production: Probabilities of Error in CIA Forecasts were considerabl hi her than those in recent years. Improvements Table 6 USSR: Grain Production, Area, and Yield Analysis 1977 1978 1979 1980 1976-80 (average) 1982 Scenarios Highly unlikely Production (million tons) Area (million hectares) Yield (centners/ hectare) 195.7 130.3 15.0 237.4 128.5 18.5 179.2 126.4 14.2 189.1 126.6 14.9 205.0 127.9 16.0 190 122 15.6 180 122 14.8, 170 122 13.9 165 122 13.5 a Production is the unofficially reported Soviet figure for the 1981 crop. million, or 190 million tons-indicates the following: ? A crop of 190 million tons harvested from an area of I only 122 million hectares would give a nationwide have enabled us, on the average, to yield of 15.6 centners per hectare (c/ha)-the come within 4 percent of actual Soviet grain produc- fourth-highest yield ever. This case is highly tion over the past four years (assuming that the 1981 unlikely. crop was 158 million tons). Errors during this period ? A crop of 180 million tons would require a yield of ranged from -5.6 percent to about 8 percent. A 14.8 c/ha-possible but also unlikely in our similar range of error suggests that 1982 Soviet grain judgment. production could fall between 156 and 178 million ? At 1.70 million tons, the yield becomes 13.9 c/ha-a tons .1 possible achievement. Historical Yield and Acreage Data A strong case can be made that this year's grain crop is not likely to be much larger than 165 million tons, a figure reached by analyzing historical harvested acre- age data and average national yields (table 6). This year's harvested area-estimated to be about 122 million hectares-is the smallest in a decade, and that constraint alone places upper limits on the amount of grain that could possibly be produced, given this year's poor weather. Analysis of three possible cases-that is, if the crop comes in at 170 million, 180 Assuming that last year's crop was only 158 million tons, a yield of 12.6 c/ha was obtained from a total harvested area of 125.5 million hectares. Our pub- lished estimate of 165 million tons implies a 1982 yield of 13.5 c/ha, which is consistent with the opinion of most Western experts on Soviet agriculture that this year's crop is somewhat better than last year's. The average all rain nationwide yield during 1979-81 was 13.9 c/ha. 25X1 25X1 25X1 25X1 25X1 Approved For Release 2007/02/20: CIA-RDP83B00851 R000400070004-2 Secret Approved For Release 2007/02/20: CIA-RDP83B00851 R000400070004-2 Secret Approved For Release 2007/02/20: CIA-RDP83B00851 R000400070004-2