comparing and contrasting agriculture in east and west germany allyson chwee and maddison sieck...

Comparing and Contrasting Agriculture in East and West GermanyAllyson Chwee and Maddison Sieck

Comparing and Contrasting Agriculture in East and West

Germany – Historically and Today

By Allyson Chwee and Maddison SieckApril 22, 2008

Comparing and Contrasting Agriculture in East and West GermanyAllyson Chwee and Maddison Sieck

Introduction

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Comparing and Contrasting Agriculture in East and West GermanyAllyson Chwee and Maddison Sieck

Objectives

Eastern and Western German Agriculture

1. Historical background

2. Current and future

3. Comparison to U.S.

Comparing and Contrasting Agriculture in East and West GermanyAllyson Chwee and Maddison Sieck

Historical Factors Behind

German Agriculture TodayPre-Reunification

Comparing and Contrasting Agriculture in East and West GermanyAllyson Chwee and Maddison Sieck

Historical Factors Behind German Agriculture Today

Pre-Reunification (pre-1990)

Division of Germany•German Democratic Republic (Deutsche Demokratische Republik) •Federal Republic of Germany (Bundesrepublik Deutschland)

Soviets Reform Farm Operations•Bodenreform•State farms (VEG)•Cooperatives (LPG)

Comparing and Contrasting Agriculture in East and West GermanyAllyson Chwee and Maddison Sieck

Historical Factors Behind German Agriculture Today

Pre-Reunification (pre-1990)

Problems in East German Agriculture•Productivity

•Technology•Yields

•Consumption levels•Poor Quality Standards•Livestock Pollution

Comparing and Contrasting Agriculture in East and West GermanyAllyson Chwee and Maddison Sieck

Historical Factors Behind German Agriculture Today

Pre-Reunification (pre-1990)

Subsidies in East and West•CAP in West•Price distortions in East

Comparing and Contrasting Agriculture in East and West GermanyAllyson Chwee and Maddison Sieck

Historical Factors Behind

German Agriculture TodayReunification of German Agriculture

Comparing and Contrasting Agriculture in East and West GermanyAllyson Chwee and Maddison Sieck

Historical Factors BehindGerman Agriculture Today

Reunification (Oct. 3, 1990)

Issues for Successful Reunification of Agriculture

1. Alignment of prices

2. Reform markets

3. Increase standards

Comparing and Contrasting Agriculture in East and West GermanyAllyson Chwee and Maddison Sieck

Historical Factors BehindGerman Agriculture Today

Reunification (Oct. 3, 1990)

Problems in East German Agriculture with Reunification:

1. Land appropriation• Treuhandanstelt (THA)

2. Markets and prices• Influx of western products

3. Farmers unrest• Preferment of collective farming• Lack of subsidies• Loss of jobs• Fears

Comparing and Contrasting Agriculture in East and West GermanyAllyson Chwee and Maddison Sieck

Historical Factors Behind

German Agriculture TodayPost Reunification

Comparing and Contrasting Agriculture in East and West GermanyAllyson Chwee and Maddison Sieck

Post Reunification

October 3, 1990

Goal: Transform Eastern Germany into a market economy.

-Temporary market boom followed by downfall and leveling off.

Historical Factors BehindGerman Agriculture Today

Comparing and Contrasting Agriculture in East and West GermanyAllyson Chwee and Maddison Sieck

Post Reunification

East German Industry Changes

-Modernization

-Re-Education

Historical Factors BehindGerman Agriculture Today

Comparing and Contrasting Agriculture in East and West GermanyAllyson Chwee and Maddison Sieck

Item East Germany West GermanyAgricultural GNP

($ billion)15.95 27.9

Agricultural GNP per rural

inhabitant ($)11,200 13,520

Land (million hectacres)

6.2 11.8

Labor (percent of work force)

10.8 4.2

Souces: Agricultural GNP

Comparing Agricultural Sectors (1989)

Comparing and Contrasting Agriculture in East and West GermanyAllyson Chwee and Maddison Sieck

ProductionNumber of Farms

Production

More efficient production methods:

-Modern Machinery

-Technology Innovation

Comparing and Contrasting Agriculture in East and West GermanyAllyson Chwee and Maddison Sieck

Dividing Collectives

Cooperatives Partnerships

Family FarmsJoint-stock Companies

Comparing and Contrasting Agriculture in East and West GermanyAllyson Chwee and Maddison Sieck

Current German AgricultureEast Germany

Comparing and Contrasting Agriculture in East and West GermanyAllyson Chwee and Maddison Sieck

Current German Agriculture

Eastern Germany

Remnants of Collectivism•Farm Size•Rented land from THA•Remaining land disputes

Future•Comparison to western Germany•Number employed•Biodiesel

Comparing and Contrasting Agriculture in East and West GermanyAllyson Chwee and Maddison Sieck

East German States

Mecklenburg-Vorpommern

Brandenburg

Sachsen-Anhalt

Thuringen

Sachsen

Comparing and Contrasting Agriculture in East and West GermanyAllyson Chwee and Maddison Sieck

Current German AgricultureWestern Germany

Comparing and Contrasting Agriculture in East and West GermanyAllyson Chwee and Maddison Sieck

Western Germany

- Industrialization Farms

- Surpluses

Current German Agriculture

Comparing and Contrasting Agriculture in East and West GermanyAllyson Chwee and Maddison Sieck

Comparing German and United States Agriculture

Comparing and Contrasting Agriculture in East and West GermanyAllyson Chwee and Maddison Sieck

United States Climate

Comparing and Contrasting Agriculture in East and West GermanyAllyson Chwee and Maddison Sieck

German Climate

Temperate

Comparing and Contrasting Agriculture in East and West GermanyAllyson Chwee and Maddison Sieck

United States Farms

Comparing and Contrasting Agriculture in East and West GermanyAllyson Chwee and Maddison Sieck

German Agriculture

Comparing and Contrasting Agriculture in East and West GermanyAllyson Chwee and Maddison Sieck

Comparing and Contrasting Agriculture in East and West GermanyAllyson Chwee and Maddison Sieck

Comparing and Contrasting Agriculture in East and West GermanyAllyson Chwee and Maddison Sieck

Comparing and Contrasting Agriculture in East and West GermanyAllyson Chwee and Maddison Sieck

CAP vs US Farm Bill

Farm Bill (Agricultural Adjustment Act) 1933-subsidies to reduce crops

CAP 1962-increase ag productivity-ensure fair standard for living for farmers-stabalize marketsGuarantee regular food supplies

Comparing and Contrasting Agriculture in East and West GermanyAllyson Chwee and Maddison Sieck

Fragen?