jII E PnDVESTRICTEDIUI .L. 40UurReport Non C-28a

Annex I to EA-71a

This report was prepared for use within the Bank. In making itavailable to others, the Bank assumes no responsibility to them forthe accuracy or completeness of the information contained herein.

TXTrVDXT AmTI-T AT D A XTV irlD DUf" INXT0rD fTTO T TCTrfNT A TT- T1%TrVT 1A-D%T)A4VXlT'A NAA: %1 - NC - iJ)I'l ' .JZ L'WI xF % jI 11 ~I\ U I VF i r1IiN LE,V 121 \'V IiviL12, N I

TXTL Ar DT fTTY T TTD ' Tr)f% T rr A T v

July 16, 1957

Department of OperationsEurope, Africa and Australasia

Prepared by: Sir Herbert Stewart,LIl

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I

General features........................................... ...

Place in the economy.....................................1me pattern of the agricultural economy....................

Distribution of area.....................2.......... ...... 2Cropped area and production........... ..................... 3The longer viewpoint........................... .......... 3

Average yield per hectare....................................... 4Fruits... ............................................. 4Some factors responsible for the increased production............ 4

Better seed......................................Better cultivation......................................... 5Increa3ed use offertilisers ................................ 5Better plant protection................................... 5

Livestock... ... o..... ............ ....... ......... . . . . .. . . 6Daily supply of nutrients per capita.......... ......... o.... .... 7Agricultural marketing...........................................7

Internal ........................ 7External.................................................. 8

Foreign trade..........................................9

II

The Vanoni Plan....... .................... ................. 10The few outlook..................................................10

Objectives ...... o.............................o..............11Changes involved in the pattern of agricultural activity....11Effect on agricultural production...........................12General results..... ................. ...... . ................... 12Sources of the increased output................ o ........12M,eans of obtaining the increased output.....................13Estimated investment required............................13Sources of finance......................................... 13Estimated effect on the balance of trade in food products...1h

III

Land Reclamation--,................ . ... ...... * ................. .. 1The Cassa's 12-year land reclamation and transformation Drogram-.16Economics of land reclamation. ................................... 17

Private-sector....... ....... .. 18Mountain re-ra Qnti- rm -. . . . . .. . . 0l

'-TIz

.LV

a - * * * * * * * * **.*. .***.......**********.................**......*............Present land reform activities...........................20

Land distribution prior to 1950.......................... 20Land Reform 1950............................................ 20

Area to which applied.................................... 20Exuropriated area........................................ 22Land transformation and colonization..................... 22

Functions of land reform aLencies............................... 22Selection of colonists and terms of colonization................ 23Size of hnIin-n..------........ ............. 24Current state of progress...................................... 25Cnq+t mf i-hA lannd eform prnarsn... .--.-. 26Co~~~~t, -,,- -h Tniifnrpoga- -------- --------------2Preliminary rough appraisal of the effect of the land reform

progrnm on nagrimiltairal pt-oduction----------------..26Final appraisal of benefits... o ......... . ................ 27

V

Conclusions ......... ... ... ....................................... 27A. The- -gr-^1tr4 prdcto prog-----. ............ 27

Objectives................................................ 27Sptal ei...r...................................... 28Special requirements ........... . .......................... 28

S.'.'R~urbee . .I......~UL.L. .... .. d ............ U~.. ..................... 297

B. Pv v Lan re la a IO......................... .. .......... *.... 31. La a reor .................. ........................................ 291..LUV . . . . . . . . . g r u r . . .r e.s.e.a.r.o... ........................................ o.

ruigareto............................. ............ 30Lser 0 on...... ..................................

. andrculalato vegetabl .............................................. 31.'and eorv m............. ............... ..... ............. 32

D Su The agricultural es......... ...................... 33x. Agricultural research....................................... .. 30

Orga ization.............................................. 36Observations .r... ........ ................................. . 31

F. Agricultural Extension. ......................................... 38Services .............. ........... ....................... 38

Inupsa Agriculture............................. 39

Expendituore d ................. . ............... 4Observations............................................ .. 40

P. Some plans for the future.... ..... ........................ 41Land reclamation . .... ............ ... .. .. ................ 41irrigation. . .......................... s. * . . ....................... ..42Industrial Agriculture ...................... ........... 43Credit for landimprovement ..................... *.... 4

Colonists .. ....................................... 44Private land oi mers. .. .................................... 45

List of tables:Area and production of the principal crops ................ 47-48Production of principal fruits....................... 4+9Production of principal livestock products................ 50Exports and Imports of the principal agricultural products 51Balance Sheets of different types of land reclamation

and transformation... 53

AGRICULTURE

T t-Er1T7PW ATrVi TURES-.

Place in the Economy

1. Agriculture contributes roughly one-quarter of the gross nationalnroduct in Italv. As a mroun includinp forests and fisheries it is scondonly to industry, though far short of it. Of the total Italian labor force,alclated at 91- )7 millions in 19o5, ayriiflturn asnrhd A -A millions or

39%. One-seventh of that number failed to find full employment in it.

2. During the last half-century there has been a constant decline in theproportion of the ativ Tesin poplat+inng aed inagroic" e%ii' TPY-nyn AIV- j ri i onli

the proportion fell successively to 56% in 1911, 51% in 1931, and 4l' in 1951.

agriculture, though the total population of Italy increased by f45%.

3. The mechanisation of agriculture which has pushed ahead steadily in Ita.

the country, has probably contributed to the reduced manpower in agriculture.The reauction might have been stll greater but for curreu legisablon w[icacompels ciltivators to employ a prescribed minimum of labor.

The Pattern of the Agricultural Economy

4. Italian agriculture presents a picture of great contrasts according tolocality: lands intensively cultivated and great areas making little contri-bution to the national income; minute holdings and large estates, often ofabsentee owners; densely populated areas and vast regions without a habitationapart from occasional villages perched on hill tops; prosperous homesteads andcave-dwellings; rich soils capable of a variety or profitable uses and landswhich provide a mere existence; heavily mechanised cultivation on flat androlling country and cultivation by the primitive hand hoe on steep slopes whictshould be otherwise used; an intensive fruit and vegetable-growing economy insome regions and a bare cereal-cum-pasture subsistence economy in others;comparative wealth, prosperity and vitality in the gorth and poverty andgeneral stagnation in the South till recently. Fortunately, current agri-cultural policy in Italy is doing something to minimise the degree of some ofthese contrasts though a number of considerations will make it impossible everto eliminate them altogether.

5. In general, and realisin, that the agriculture of the small holdings inthe mountain and hill regions of/the extensive North differs from that of thePo Valley, agriculture in Northern Italy is characterised by specialised fruit

production, intensive vine culture, industrial crops - most of the sugar andrice and the best hemp come from this ree:ion - and large scale fodder-growingfor intensive livestock raising.

6. In Central Italy, which embraces abGut one-third of the total agri-nltural lnd. qil and nlimnt have combinRd to orodice a mixed rnltivation

of wheat, maize and bean crops, olives, vines, fruit trees and forage cropsWhinh Qalnnnr+. lics.nok raicinq nn a nonnitJPrqh1P. aql in nm areas Shenfarming is of importance towards the South: "ezzadria" or share-cropping is

agriculture of the extensive large estate type. The country is backward and-o" A eve-l opd 'l- --- Inn ---, n

4a ,e,, l, n

4 An -- +I- , 4 11 + -- P+r

44

at considerable distances from their land. Vheat growing is prominent every-W'ilJ .LU _J1 iI L4U~ L U.L LlJ10 L_.L_L_U.LVUU L'U J_L. 5L1t _L Cu ui ~ C J

olive trees, vines and almonds. Summer drou.ht and absence of suitable con-

this species is scarce.

8. Fundamentally, agriculture in Sicily, like Southern Italy, is on acereal-pastoral and tree-growing basis. uCh of' the soil is heavy clay andin the interior the arable land is devoted largely to wieat and bean culti-vation. In the coastal regions citrus fruit and vegetable growing areimportant. Lemons are of special significance and the island is believed tobe one of the major lemon-growing areas in the world today, in certain inlandareas vines, almonds, olives and carobs are grown extensively: livestock arefew in number and poor in quality.

9. The Sardinian agricultural economy has changed little over the centurieexcept in very limited areas which have come under recent special development.The agricultural land is principally devoted to livestock raising; poorpastures graze large numbers of sheep and cattle; poor cereal cultivation iscarried on b!' a sparse population living in scattered rural centers; goodarable fields are few; olive and vine culture is found to a small degree. Thechanges which the development of irrigated farming will bring in the croppingand land-use pattern will have important results on the lands concerned andon the general economy, but they will affect only a small proportion of thearea of the island.

Distribution of area

10. Italy is predominantly mountainous and hilly. 39% of its territory isoccupied by mountains; 40% is hills: only 21% is plains.

11. The 75 million acres (30 million hectares) which make up Italy may bedivided approximately as follows:

Acres Hectares(million) (million) %

Agricultural land 52 (20.9) 69)Forest land l (5.7) 19) 92Wa thrled 3 (1.91 b)Other (inland waters, cities, roads, etc.) 6 (2.3) 8)

7( (A0.1 100

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12. Of the area classified as "agricultural", arable land constitutessome two-thirds, vinevards and orchards almost one-eighth and permanentmeadows and pastures the remaining one-quarter approximately.

13. In broad terms, three-quarters of the agricultural land are locatedin mountain and hill areas: only one-quarter is flat clains land. of whichthe Valley of the Po, in Northern Italy, provides more than half.

Cropped area and production

14. In area cereal production plays the major part in arable land use inIT+.ly - sonme K5h% of t-he t+.1 - f-111 +A1T.0 fnii- m-n- nrnim someaindustrial crops of which sugarbeet is the principal, less than 2%; oilseed

nra,e -^Ie,n ,a n-N -1+nre4

u 4 yi -,n n"A a *.k-o A-,t1 .T, ne n nn

such as cotton and flax are included, amount to little more than one-half ofane per, cent * +1~,n arean u,nder ' 4- 4s r e d-1n A -C cul to -n -- -a -,. n - , fl __ -h -

'.JULWM jS '.tO.LIJ VUI I. C A . LA WA. U M_. AlUJJ C A.J Q.. ld . LJ00, -_.tt AA J

fruits are grown in both pure and mixed cultivation, but probably accounts±%Jr more/ tha 23W. 0'./O Ut=. Cd11 t;. U LCIALA9

±.L 111t-_ art:: iiu JrUUUuULU11 U.L wit: JJ.-.L1QJ.JJcLL U1VJj UU-.ltf, tdU.ll Ul LRk L .L Vt.

years 1951-55 are shown in tables I and II in the Appendix. While the totalarea unuer cereas remains a-MOuS cUruanit, an 1(ErUbV 11 Une area oU WledaU

and a fall in that of the minor cereals are seen. Vegetables occupy anincreasing area: emp tenus oU Uecline.

10. Production, however, presents a different picture. There is a largeincrease in the output of cereals. vheat and maize make the principal con-tributions to it but oats and rice also add their quotas. The production ofsugarbeet has increased steadily and extensively; so too has that of potatoesand tomatoes, Of the fiber crops cotton output has doubled but both hemp andflax have decreased. Oilseed production is on the increase.

17. Amongst fruits the production of grapes during these five years hasrisen considera "ly; so too has oranges, but lemon output has shown littlechange. Pears, apples, peaches, cherries all show large increases. Oliveproduction has deteriorated due to severe frost in some areas in one yearand to heavy damage by fly in another year.

The longer viewpoint.

18. Over a longer period of time trends are more apparent. The followingfigures show for certain groups of crops the areas and output in recent yearsand in the years immediately preceding World var II:

ProductionArea average annual

Average annual (million quintals)(million hectares) %

increase (increase (+) or

1936-39 1952-55 or decrease (-) 1936-39 1952-55 decrease (Cereals 7.U7 .9-9 -6 192-1A 112-17 I 8Principal legumes 1.248 1.098 -12 8.36 6.71 -20Veetables .653 .753 41 q 43.68 70 -1 411Industrial crops .243 .361 +48 3.00 71.05 +109

19. Though a reduction of 6% has occurred in the area under cereals,Production showed an increase of 8%. The degree of decrease in legumeproduction exceeded that of the area. The percentaL;e increase in productionof vegetables was double that of the area. The output of industrial cropsmore than doubled, though the area increased by less than half.

20. The progress which has been made since World 1-Jar II in increasing thevit-lrd npr hp.ntarp of some of th- nrininal nron. i.q shown hv t.hp folln1winpdata:

Average yield per hectare

(quintals)

1936-39 1952-55 Maximum yield attain(lat+1A 176 A0A in10

Naize 20.3 23.3 25.3 in 1953

Sugarbeet 2W2.8 303.0 358.8 in 1955

21. Over the same period some of the less important crops show little

V,~ -1 4.L

has been remarkable, as will be seen from the following statistics:-

Average annual production of principal fruitsMI.L -_L 1onsoqUIn_ua-'

% increase (+)1936-39 952 )- or decrease k-)

Grapes 61.59 862.6 + 34Olives 14. 14.85 4 (1955 bad crPrincipal citrus fruits 6.52 9.75 + 53Appies 2.oo 9.67 4. 235Pears 1.97 4.00 + 103reaches e.31 4.35 + 88Almonds 1.80 1.81 - (1955 bad crCherries .07 1.28 + 91Plums .51 .97 + 89Walnuts .48 *9 -

Some factors responsible for the increased production

23. A number of factors have combined to produce greatly increased outputsof several important crops without a corresponding increase in area and insome cases even from smaller areas. Amongst these factors progress in techno-logical improvements and their practical application in every-day agriculturerank highly. The principal are:

(a) Higher yielding varieties of seed

(c) Increased use of fertiliser

ek. ureaettr progrec L fne prouucbu u imppovsu vfrompesuts a i ouvybreeding or selection has been made in wheat, maize, rice and potatoes. Tkenable small farmers to substitute the new and higher yielading varieties ofwheat and maize for the poorer varieties hitherto grown, Government subsidisedthe price of the better seeds to tnem by 0% and even more of the normal cost.Improved and selected wheat seed is calculated to be grown now on 95% of theentire wheat area in Northern Italy, o57 in the Center and South and >u7 inthe Islands. About 90% of the whole rice crop is said to be sown underimproved seed. Hybrid maize is spreading rapidly.

Better cultivation

25. A remarkable feature of Italian agriculture over large areas is thedepth to which the soil is ploughed during land improvement operations.Ploughing to half a meter depth is ordinary; up to even one meter is oftenseen. Deep ploughing appears to have a highly beneficial effect on crop yield,in these regions; in many other countries similar treatment would ruin soilfertility for years to come. The introduction of tractors has made thispractice possible on ever-increasing areas of land.

26. The rate at which mechanical cultivation of the soil is spreading maybe judged from the speed with which tractors are increasing in number. In1938, prior to World War II, Italy had just under 37,000 farm tractors. By

1947 the number had increased to 55,000. In 1954 it was 142,000, in 1955163,000 and by the end of 1956 about 186,000.

Increased use of fertilisers:

27. Chemical fertilisers have become of increasing importance in cropproduction, though some falling off has occurred since 1954. Nitrogenous andphosphatic manures are in greatest demand. Potassic fertilisers by comparisonare relatively little used. In 1955-56 agriculture used some

.17.5 million auintals superphosphate12.9 million quintals nitro'genous fertilisers1-0 million ouintals notash manurp2.9 million quintals mixed fertilisers

28. Since 1939-40 the annual consumption of nitrogen has increased by somenO% of nhnqnhnrin nnirl hv me Vani nf not.nah by nme 7<L%

disease an pets m the mar fe ve

diseases and pests. Amongst the major fungicides aznd insecticides over aIILJ.L qu'in ' sU.. of.t cope -=,t wric more tnan *~ nalf .. LL. aUiL of

sulphur are now applied to crops annually. These quantities representincreases of some 30% and 6U% resnectively on consumDtion five years aco.About 80% of expenditure on fungicides goes into the manufacture of coppercomnonnds to control fnnri attacking tne ran cron,

'I() There iqsashr+a of lvsokpatcaryin .hP (Pn+.Pr nnd Sn,Ilt.hof the country. In the North many fine cattle-rearing holdings exist and ofter

agricultural economy of the Po Valley that 65-75% of the gross income of thef 4 -A -P-0 A + 4

other regions. Lack of irrigation facilities and badly distributed rainfalliia~ hL~U .L' 41L U.LU "I ± 1,L11Z~ UUUI tjV produce Wit'.1~ UUUU111 t:;.bt:iU_La_L UI cattl-LE

raising. In these regions, therefore, livestock is represented mainly by sheer

necessary food.

32. The current livestock improvement policy which has been pursued overthe last quarter of a century has given good results. Cattle improvement iseffected both through the import of certain good foreign breeding stock andthrough strict control of stud bulls by a system of registration and licensing.

No Government farms for raising stud bulls exist but selected private cattlebreeding farms operate under the supervision of the Ministry of Agriculture.Artificial insemination is practised extensively in some areas. The servicefor treatment of animal pests and diseases appears to be efficient thoughhampered by inadequacy of funds. Italy manufactures its own requirements ofvaccines and sera.

33. Livestock statistics are poor. Italy did not participate in the 1950livestock census which was taken in many other countries. The last Italiancensus is understood to have been taken some twenty years previously. Currentfigures of livestock population, therefore, are not very reliable estimates.

34. Such statistics as are available at the moment indicate that changesof the following order may have taken place in the livestock population duringthe last half century:

Number (millions)

1908 1930 1955Cattle .7 7.09 9.03Sheep 11.42 10.27 8.25Goats 2.80 1.89 1.80Pigs 2.60 3.32 3.74Horses .98 .94 .67Donkeys .87 .90 .72Mules .40 .7 .40

(Source: Italy. Aricultural Asects by GiuseoDe Medici and Annuario diStatistica Agraria, 1956, Istituto Centrale di Statistica.)

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35. Thus, while cattle have increased by some 38% and pigs by h% duringthi pe;or" In n "r 14 ^^e+rlr tin Trm ,Aoa nnr" e

4 iTrm An mi "- +A, ^n i 'M

numbers.

development aims for the future, not only to give better balance to theagricultural econom but also to produce tne protein fur a better Qalancea diefor the people. In this connection much is expected from the land improvementprograms and from the development and utilsation for irrigation of the waterresources of the South. The progressive intensification of tractor farming wifurther release draft cattle to meat and milk production purposes, as well asprovide larger supplies of grain and fodder with which to feed them.

Daily supply of nutrients per capita.

37. The current daily supply of nutrient substances and calories per headof population shows little change from that of 30-40 years ago. The calorysupply is actually some 100-200 lower than during the years 1923-30. 1954figures, the latest available, are as follows:

Average daily supply per capita

(a) Proteins 91.8 grams(b) Fats 63.1 grams(c) Carbohydrates 431.5 grams

Total 586.4 grams

Calories

(a) Total 2,719(b) As percentage of nutriments

i Proteins 13.8%ii Fats 21.11-

iii Carbohydrates 654.1%

Agricultural Marketing

Internal

38. Internal agricultural marketing policy is directed to prevent seasonalqlumns in +.he nrice of ertain nrnintq- Thpqe slumns threnton mainly nt

harvest time when the producer, to meet his financial obligations, is forcedao offr fTr eal larger policyties isf p ie cd o the o11p t ofark rn nr+ o11rabsorb. The policy is effected tiwough the operation of a number of "pools"

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which purchase produce surplus to the requirements of the producing farms,store it in silos and release and redistribute it according to market needs an,price movements. The 'pools are associations of the producers themselves.The degree of control which they exercise varies with the nrodint Pool falIunder the folloing categories:

(a) Completely compulsory. All rice and hemp surplus to the

the pool concerned.

(b) Partially compulsory. Only a proportion (25-33%) of the

to the pool. The producer is free to dispose of the

%U VVJWU-LIU"- IUIU kJCL1U.LCL.L. Ll. Y LJUUUU1. ILCLO ULM- j.JLU.LVLIi UVd

sell surplus stocks of maize, olive oil, cheese and silkcocoons to their respective pools but is under noobligation to do so.

39. vheat pools are operated on behalf of lovernment by the Federation ofagricultural ooperatives krederazione Italana dei onsorzi Agrari); neother commodities are handled by the producers associations themselves.

40. Prices of these commodities and of sugarbeet are fixed by Governmentthrough a liational Price Committee, composed of officials and representativesof the interests concerned.

41. Theoretically there are no price supports but in practice Governmentmeets a part of the expenses incurred by the pools.

42. Voluntary pooling to preserve and store farm produce while waiting forfavorable market conditions started in Italy about 5U years ago. It was nottill two decades ago that the transition to compulsory pooling of wheat tookplace.

43. Pools have performed a valuable service to the cultivator in offeringhim an opportunity to sell his produce under the most favorable conditions,and in protectin: him from heavy losses which he would undoubtedly incur intheir absence. Even before compulsion was introduced voluntary wheat poolinghad attained the considerable figure of 795,000 tons in a year. Since the warpooled cereals have fluctuated annually between a minimum of 1.15 million tonEand a maximum of 4.6 million tons.

External

h. Rice exports are handled -by the Rice Growers' jissociation (Ente Risi),hemp exports by its own association (Consorzi Canapa). .The Federation ofAgricultural Cooperatives, operating as "FEDEXPORT", markets about 15% ofexported fruits and vegetables; the remainder is exported by private trade.

Foreign Trade

45. Table 1.V in the appendix summarises the exports and imports of the

and vegetables, preserved fruits and wine constitute Italy's principal agri-

the quantities exported annually. There are also small exports of hemp, horse

le _r _..n - i a- - - -- - e r of .crea - - o s - s m r a

4u. ULaiy a heavy imporberE vi ceredL graius; WLAit, kU1iato.UeU mure aU11n

three-quarters of this total. Cotton fiber and oilseeds imports also areextensive.

47. iA considerable two-way trade occurs in potatoes and in canned and driedfruits, though in both cases exports predominate with appreciable margins.Imports of olive oil exceed exports: lower grades are imported and finer grade

exported.

48. Sheep is the only class of livestock in which there is a regular export.The numbers are small, however, and average only 6,000 heads a year. in someyears there is a small - less than 3,000 - export of mules.

49. Amongst livestock products, cheese is the only export of importance -average about 17d,,000 quintals annually during the six years ending 1955.Imports, however, about counterbalance exports.

5o. Italy is a regular importer both of livestock (ranging from young calveto bulls, cows and oxen) and of livestock products. Imports vary widely fromyear to year as the following figures,* coverin- the six years 1950-55, show:

(a) Livestock

Class of animal Minimum Maximum Average(in thousands of animals)

Bovines 58 131 95Ovines .25 10 4.7Pigs 4 144 43.5

(b) Livestock products Minimum Maximum Average(in thousands of quintals)

Beef 172 400 308 )Hutton and goat .3 1 .h) TotalPork 2.5 41 16 ) meat -

Poultry 37 100 A ) 388Wool 478 836 642Cheese 62 260 169Butter - 186 80Ep'As 91 113 179

LflJ~ ~ +] +.t f1JU...A . . A.I.L 4..-. .1 4L ii'J 'L,SJ &~. A. LIO JJ. J~i

-1n-

A+ i vnnr-v" -n+- 1Jir o -ztmn(-t -f -os1inM-% Tr.& i ononrq on

imports for more than 52 of its meat consumption and for over 80% of its-e---+~ sP f ,' , i'n nnr' n-~nny,+ n -r+iwer -.rnr%I Io ann

These proportions have been as high as 6.7% and 85% respectively in some yearssince 7 1950 T 1,_ - -.J --V U -4. A -- -f. .J 4.O - 5 , ~ L -4 -1 +,-1 -- '1.~ -;- - -p- ^f

increased livestock rearing will help to iinprove the meat position. The Cassaestimates Ul.lau U)' LLeen JL LU _LC~ .. ~year J progl-CLIL L70L/ J.tL,:) cUU L.L± -t. L " v11

South will have added almost 800,000 quintals of meat annually. This increase

the average annual import of meat during the six years 1950-55 (150% of the

occur in the North also. Even so, rising domestic consumption may continue tooutrun home production.

I. ine vanoni Plan

52. The agricultural production policy for some years has been based onprogress in two main directions:

(a) The improvement and de.elopment of new areas.

(b) An increase in production from areas already under cultivation.

53. It is probable that iiore attention has been given - at any rate theresults are more obvious and more spectacular - to the first of these twothan to the second, but in recent years much has been achieved in a quiet wayfrom the latter by the adoption of improved techniques in agriculturalproduction.

The new outlook

Sh. In recent years it has been felt increasingly that the nationalinterest demands a new approach to agricultural development. Progress in thepast has been uneven: the North has advanced while the South has staanated.The traditional cereal-pasture pattern of land use, still so dominant in theSouth, needs reorientation insofar as local conditions and natural resourcesmake feasible a better balance between cereal cultivation and livestockproduction. Vast areas of land. particularly in the South, utilizad uneco-nomically for decades, contributed little; under an extensive program ofreclamation and reform. it was considered they could add materially to ari-cultural production, give employmert and provide a settled life for largenumbers of landless neorle. The outstandin;, features of arricultural develon-ment in the current decade center, therefore, on very extensive programs ofland reclamation and land reform.

r) No ditiled nlan has been nrPanrAd for thp future development of ari-

culture in all its segments. The general objectives of a program and an out-line of the broad mans b which they are to be abtained howr form animportant part of a 10-year (1955-64) general economic development plan forta lvr puti fr rd " 1vtr +hm I!+, e -~ o -- +ha~ Rfl 01+ R.17in UnnnYli T)nn+. a+iiAwi

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has become the basis of the aoricultural development policy in Italy; Govern-

variance with it. Further, a special secretariat has been set up to deal

the agricultural plan are described below.

Objectives

56. The objectives of the Vanoni plan of agricultural development are boths o c i al and economic. Th-le C!hiesf are:-

(a) A better balance between labor supply and employment(b) an increase in the production of foodstuffs and industrial

crops to meet the requirements of an improved standard ofliving of the people, and

(c) the assurance of profitable disposal of agricultural produceand the prevention of seasonal gluts by the processing ofsurplus fresh produce.

Changes involved in the pattern of agricultural activity.

57. Whilst some of these objectives will be partially achieved through theincreased adoption of improved agricultural techniques in ordinary farmpractice, their full realisation involves certain basic changes in agriculturalactivity, notably:

(a) An intensification of livestock raising and of theproduction of fodder crops to maintain it.

(b) Large scale land reclamation and land reform in manyareas to give better land use, increase the outputand variety of farm products, give more stable employ-ment and provide a settled way of life for landlesspeople.

58. Such changes require time. Land reclamation measures take years tocomplete; large areas of underdeveloped land cannot be colonised and broughtunder intensive cultivation overnight. Even when completed, land thus trans-formed does not reach its full production capacity for some years. For thesereasons the agricultural development plan embraces a period of ten years,195-64.

Effects on arricultural production

q9_ The nrincinal exnected effects of the plan on aericultural production

by the end of the ten year period are:

(a) An increase of 37% in products from livestock whichs +n n nl the dnminant. na+. in the dvlnnmnt nrnor.Pm-

Most of the increase is intended for domestic consumption.

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(b) increases of 36% in fruit and 202 in vegetable production,much of it for the forin mar t-.

_L V ltL KCLO, 41 , .& Z,C_ yJ.L V" W U4AJI VVA. ULI OL _)* _,/O

decrease in the area under cereals.

60. Though these results do not alter the current order of priority of thevarivue- asup cipvuv ontvuributors 4[- the I -4--l aeoxaa upVC..L AUO r.LVuPiz) V1 jJ1.LUUUk.; 11U d._LLUUA± UV Lilt UICL- U Ci .L.LUU±bUUd±. VuuI4iuk.,

they have an influence on the relative degrees of importance of these groupsd sUWn UelUW

kfU1Fut i UrpUbiioUn anu vd-uLU agricuL ura. output, envisageu n Une plan.

Value of 1964 1964 Percentage of Change inoutput index total value of percentage value

Crop (billion lire)(1954 = 100) agricultural output from 1954 figure

Cereals 770 110 21.2 - 2.4Vegetables 320 120 8.8 - .2Fruit 335 136 9.2 4 .9Wine 350 lo 9.6 - 1.7Olive products 120 128 3.3 + .1Industrial

crops 110 129 3.0 + .1Livestock

products 1 385 117 18_p 4 h12Timber 100 100 2.8 - .6Others i)n In0 3 I Q

Tnol 3,630 123 100.0

Al TnL-on noac muhno +.him nlnn an-vAqzPc hir 1Qt;) nn int-ron.-e nf 9,11 (A70billion lire) in the value of the gross product of agriculture - an average

Ao The ^ttp Pn of this -rsul + exp +nted to nes operat+;Ive

from 21o to 25% of the gross value of production.

63. On this basis, and making certain other minor adjustments, it is expectetjidXU ULA~ ~U P

1V'.;U U .LL CLSL.'.. ULU UI " YYI J__L -Y1.J CO ~ J!~L./ C - C J.L

2% per annum.

Sources of the increased output.

64. The plan estimated that the increased production may be obtained asfollows:

(a) From lands already under cultivation 64(b) From newly reclaimed areas 36

Means of obtaining the increased output

65. Lands already under cultivation are to contribute their quota ofincrease by the normal methods e.go

(a) Iec hanisation,(b) The widespread use of improved crop varieties and

(c) Greater use of fertilisers for crop production andbetter feeding of livestock.

(d) Adequate protection from plant and animal diseases.

66. These basic requirements are to be supplemented by the better pre-paration of produce for the market; extensive technical instruction of culti-vators through propaganda, visual demonstrations and courses, and recourse toadequate agricultural credit.

67. To enable reclaimed lands to make the contribution expected of themvery extensive works are envisaged.

68. The land reclamation program involves about 4 million hectares, equi-valent to almost 20% of the "agricultural" land of Italy and approaching 301tof its "arable" land. It includes some 05 of 6.5 million hectares classifiedas "mountain reclamation areas".

o. The provision of irrigation to 700,060 hectares of the reclaimed landis required.

Estimated investment required.

70. It is estimated that the total new investment required will be of theorder of 3,500 billion lire. The magnitude of the different aspects of thisinvestment is as follows:

Billion lire %Transformation (irrigation and dry) and mountain

improvement projects 1,004 29Land reclamation projects 543 16Land reform 522 l5Technical assistance and vocational training ho0 11Livestock and other stocks 385 11Mechanisation

313 9Plant for grading and processing agricultural products 300 9

Total 3467 100

Sources of finance

71. The plan considers that this investment might be mat from the followingsources:

Billion lire %

Public 2,015 58Privatea 1 C 12

34 ),A7 100

72. It J~ . r~ r 4 e A +~ + I, -- 1 - - n 4 -n 4^ e%- iv' - Ji- o±n ,-r c + .

ment depends on appropriate adjustment in agricultural credit.

Estimated effect on the balance of trade in food products

73. The plan estimates that its effect on the balance of trade in food)9LI1 L U Z; 1110.y LJI= UU '-VL±VU tj WtI- U LA.L- V-L -L7 4 -LIAI Z UL - L l .1L7UJ4 b L

following extent:

1954 1964

Imports 2U 300Exports 230 370

Balance of trade -50 +70

III Land Reclamation

74. Land reclamation has been carried out since Roman times. Originallyit was taken to imply only the drainage of marshy and swampy areas foreconomic and health reasons and the protection of cultivated areas from floodEbut it now includes drainage, irrigation, rural roads, electrification,domestic water supply, reforestation, control of mountain water courses and oisoil erosion in territories in backward condition susceptible to radicaltransformation through the adoption of works of general interest. Thus theobjectives of land reclamation are both social and economic and its scopeincludes about everything which will improve conditions in these fields inrural areas. Law No.215 of February 13, 1933 is the basis of currentactivities.

75. In view of the wide diversity of the measures within its scope it isnot surprising that land reclamation activities affect a large proportion ofthe surface area of Italy. There are few, ii any, regions or provinces whichare not interested in some of these measures.

76. By 1950 land reclamation was under way on seven million hectares ofland. Work was in an advanced stage. About one million hectares mostly swam,had been drained: two million hectares had been protected from floods and giveimproved drainage. Since the passing of the Land Reform laws in 1950 13 mill.hectares of land. representing some O% of the total aricultural and forest

surface of the country have been brought within the 350 areas which have beencasited as Comprenor di who le- cou y toh di ar r ceare scattered throughout the whole country, though they are more concentratedJ-41 ovIft reg~Lins U.i.l k iniL other.

77. The greater part of the 13 million hectares of "reclamation" land isY1.L±Vtt; Y! .tVjJ1L.Ye .J1JU ye JdlkL L ckLV-LL'4.es consLO.LLO&U CZ~ JV'JL.& -4.Sx.'.

public funds providing such facilities as are of general utility to thecommunity and private funds tnuse when are o individual oncen. Pubicworks include drainage, storage dams, headworks, barrages and main canalsfor irrigation, roads, domestic water supply, and electrification. Crivateworks are exemplified by farm buildings, land clearance, levelling forirrigation, and the network of irrigation distribution channels within theindividual holding - i.e. all fixed farm investment.

78. Government does not normally undertake directly the execution of publicworks associated with land reclamation. In the Forth the work is done byvarious Consorzi di Bonifica (Land Reclamation Agencies) of local farmersoperating under the Ministry of Agriculture and Forests. Over most of theSouth and the islands it comes within the sphere of the Cassa per ilMezzogiorno which also works through similar agencies.

79. "Public" works are financed as follows:

In the North - 75% by Government, 25% by the local peopleIn the South - 87.5% by Government, 12.5% by the local peopleIn the mountains - 90% by Government,, 10 by the local people.

80. Private works are carried out by and at the expense of the landownersthemselves, but Government makes a contribution of the following proportions:

In the North - 33% of the total cost of approved worksIn the South - 38% of the total cost of approved works

81. By far the greater part of current land reclamation activities is locain the South of the country and on the islands. This results from the decisiof Government to give special attention to the development of the backwardSouth and from the creation by law in 1950 of the Cassa per il - Mezzogiornoa public corporation having responsibility for the rehabilitation of thissocially and economically depressed region, and provided with the necessaryfunds covering a period of twelve years. A Bill is before Parliament atpresent to extend the Cassa's life by a further three years i.e. up to 1965,with suitable additional funds.

82. The Cassa's responsibilities and activities are not confined to landre.amation or even to airiculture- They include non-StatA roads. aonpdncts.sewers, development of tourism and railways. Agriculture, in which thedPnrPsqion of thp Soth is mainly rPfl-cted reciveq. howtvpr- its arpt-tattention.

83. The total appropriations provided to date for Cassa activities amount+n 19R0 hiliin li-r (900 millinn annrny- ncziHPrPd mrp- +.hp t.a.Tv1-VP-

year period the average annual expenditure represents 0.7 of 1% of the nation.

84. In the distribution of funds amongst the various sectors of Cassaactivity. azriculture r'eceives the lion's share. thug:

Billion lire % of total

APrimi tu:rp 910 71-1

Aqueducts 150 11.7Rda114 9.0

Railways 75 5.9

1,-280 100.

85. The allotment to agriculture reflects the importance of this sectorin Which gr,vr'mn.rf investment th"rou,4,gil. h as is desig,nnA -d onceate no

only the physical conditions for greater productivity but the more important

rela o Lint-- LL_LUte1LU Soth. age Cas fud fo a c l develop -U V% V

ment or U,0o of the Cassa's total oudget allocations are devoted to landreclamation, public and private.

The Cassa's 12-year land reclamation and transformation program

88. Of the total area of over 12 million hectares lying within the Cassa'sterritory, . million hectares are classified as land "reclamation districts",These districts embody a wide range of economic possibilities and differenttreatments are entailed according to the deree of' reclamation already attaineFor these reasons the Cassa has divided the districts into three categories fo:purposes of its own development program. These are:

(a) Districts, comprising some 1 million hectares, where funda-mental reclamation has been mostly completed in the past andland transfiguration, especially irrigation, already in progressmainly requires completion. hI80,000 hectares are to be providedwith irrigation and 32,000 hectares of them to be annuallyirrigated. In addition, development will be completed on 2% ofthe non-irrigated area.

(b) Districts, covering some 2.25 million hectares with highpotentials for developmeht by an intensification of' the

dry-farming pattern, with 2UI under tree-crops (olives,no-A'I. * andl Jn s4~~~ omei. are~as -1,. a fair 4-tes-it oft~a~

livestock in others. Only 25, of the total area isex e td to be U ! .L ±.JJ V.LVL . L.±L1UiU -LC yUCU Do

kc) opecially backward uistricUs, o1 some 1.2 miLion hectares,where only a beginning in development will be made, such asthe provision of minimum services, construction of a roadnetwork, land drainage and water control. The Cassa estimatedthat farm development will be actually undertaken on someof the total area, within the 12 years.

89. In summary, the Cassa's land reclamation pro,ram contemplates that by1962 it will have

(a) provided irrigation for 440,uu0 hectares, 352,000 hectaresof the total being irrigated annually including 40,000 hectarescoming under citrus cultivation,

(b) intensively transformed 550,000 hectares with tree-crops onsmall landed properties under rain-fed cultivation,

(c) developed 560,000 hectares of dry-farmed land at differentlevels of intensity,

(d) undertaken initial development of an area of 62,000 hectaresin particularly difficult and backward regions.

90. In addition to the foregoing, the Cassa's 12-year program includesreclamation in mountain areas outside the "reclamation districts". It extendsto some 300 mountain river basins embracing a total area of some 5 millionhectares but in practice involves operations on about 750,000 hectares ofagricultural land and 230,000 hectares of forests. The work consists of floodand erosion control through afforestation, regulation of land slides and checkdams. The cost is estimated at 230 billion lire.

91. Information re:varding the full effect of the Cassa's program onemployment is not available. By the end of 1954 some 93f million man-dayshad been worked and employment was said to have settled down around 33 millionman-days a year.

Economics of land reclamation

92. The results are available of studies which the Cassa has made of theeconomics of land reclamation and transformation. These studies are ofspecial interest as they not only indicate the degree of increased productionand nof nrofits exnpntpd from thAsp nroanpAeq- but afford a m asurp of theprivate investment required, the working capital needed and the extent of theAtii+.nn,1 IAI')nr hrh h.n4d

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93. ExDerience -ained in actual operations has led the Cassa to classifyland transfDrmation into four main types. Mountain areas have been excludedfrom this analvsis- The Cassa has divided the area of its 1.51'millionhectares 12 year program, into four types and has used the average crop-yearnrio-q of' thp npriod 1Q)i9- to nan t.h- valie of the ndditional ar-riniilturnoutput deriving from the program.

94. The Cassa's analysis is based on the following main types of landtransformation efete n frmsn nr t'he averacge n+CA

(a'~ T.~r.. +'v9r -n,+ r .- - - ge size i-nd icated-

cropping pattern (cereal-livestock) in a dry-farming

Of LJ/ GOLLVE id±.±U UKau1LiUflidb.LUM U11 dHl Ut1t'UUdLt HLiLU1 W100A

partial tree-crops in a dry-farming reclamation district.

(c) Transformation with irrigation (cereal-industrial crop-livestock

(u) irrigation transLrmation witl citrus crops on a G-neouareholding.

95. Table V gives a surrary of the details of the-principal results

of the study.

96. Public sector.

(a) On the basis of its study the Cassa has computed the ratio ofinvestment to return on its land reclamation program. Actuallythe analysis does not appear to separate land reclamationoperations from land settlement activities and the resultingfigure would seem to embrace both.

(b) In agricultural production the ratio of investment to annualnet return has been calculated to be 8.71 for the program asa whole.

(c) In a rough estimate of State revenue arising from the agriculturalprogram in relation to State liability undertaken to implementit, the Cassa has calculated an annual return of 3.73%.

97. Private sector.

As already stated, land reclamation is a joint public and privateenterprise. The law requires that the expenditure of public funds on worksof public utility must be supplemented by private expenditure on the part oflandowners within the area affected, in order that the full benefits of theformer may be realised. Based on the data supplied by the study mentionedthe Cassa has calculated that the annual return on the private investmentinvolved in its agricultural plan is of the following order:

(a) 4.7% on reclamation and transformation under normal dry-farmingconditions (i.e. on a cereal-livestock type o2 farmin2).

(b) 11.3% on reclamation and transformation under irrigation-. a cereal-cum-indntrial -ronq-nm-liveqtonk tve of

farming).

98. The Cassa has further evaluated the general overall ratio of investment

* , 'A40 of ~dinAvetmen t annua net reur of* M,'sbe c-c te

£ .J 'A V.A rat -A,.LuI. _L91 L U 4LJ1UC"LL

by the Cassa on its mountain flood and erosion control program.

100. At the same time the Cassa has estimated that this mountain area prograW..- J._J:V.LW f,*,) ILL--L-UIX WU.L_&-UCLYj~ PJt::.L-CUULW11, CURA rgiVe: ~r~UFJYJ1R:11L IU 'jumfe

34,000 working units.

Iv. Lana Reform

±u. Land reform, as understood and practised in Italy today, has beenreached by a long process of gradual evolution extending far back into thelast century.

102. Initially the transformation of the soil and settlement on it tookplace as independent free individual enterprise not within the framework ofoverall integrated programs of action by public authorities. The 1tate con-fined itself to carryin0 out general public works of the land drainage type,leaving to the private landowners the option of improving and transformingtheir lands. In 1878 legislation imposed on landowners for the first timethe liability for certain aspects of land improvement and the penalty ofexpropriation in case of default.

103. In the early years of the current century land improvement,according tothe broader concepts which maintain today, became compulsory at the privatelandlord's expense, upon completion of public hydraulic reclamation, withinperiods determined by the State and with financial facilities granted by it.Although private reclamation was intensified and small owner-operated farmssprang up, particularly in the North, the measure did not prove adequate toensure intensive land use, especially in the South.

104. By the end of world War I, a number of profit-making limited liabilitycompanies acquired large tracts of land and, after improving them, carried outsettlement of a kind, usually by installing share-cropping tenants. This,however, did not give organized land settlement of the normal permanent nature

105. In the immediate post-war period, land improvement took on a new meaninSettlement became a oermanent and essential feature of reclamation. Therespective responsibilities of State and private landowner also became moreclearly defined. Finally. independent corporations. of which the ODeraNazionale Combattenti (Ex-Services' Ielfare Organization) is typical, endowedwith thp faculty of P3mronrinting lan within nrtAin scheduled aran, were

constituted to carry out land reclamation and settlement.

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106. In these new conditions and under these special land reclamation andland sttlement aenies, Qfrikina reqitq were achieved in the inter-warperiod in a few cases.

Present land reform activities.

107. Land reform activities on the present unprecedented scale in Italyhave both soiaWnd ecnmc objectives* +11 theo hnd,l large numbers- ofpeople are landless, unemployed or underemployed: on the other, there exist

A.S UU~i.sJ AfVJ ty V T.J. tUoO. Cf %J WFU J.S J..a . u Q~ w .L wUhA11

utilized and underdeveloped but capable under suitable transformation and

aims at the utilization and integration of these two assets by transformingand redistrilbuting the land to Lnct;:St ari--CU-Ltulc- 'production01 andu to gi-veincreased lasting employment.

Land distribution prior to 1950.

108. Extremes in the size of farm holdings, detrimental to the developmentof a sound agricultural economy, have always been characteristic of landownership in certain parts of Italy: large landed properties often owned byabsentee landlords contrast with excessively fragmented holdings of smallpeasants. Thus, prior to 1950 the distribution of land was as follows:

Land Owners Land Owned Size of holdingNumber of Total Total area A of Total hange Average

29,392 .29 11,056,768 4O.3 Over lU 376310,205 3.07 7,828,628 28.5 1--100 25

9,750,913 96.64 6,575,312 31.2 Under 10 0.89

10,090,510 100. 27,460,708 100. - 2.72

109. The extremes in size were most accentuated in the 14aremma in Tuscanyand Latium, the Po Delta, Southern Italy and the islands.

110. At the same time, the distribution of the population was most uneven.Over the countryside of N,orthern Italy there were 48 inhabitants per sq.kilometer (120 per sq. mile): in the South, where agricultural ioldings werelargest, the density was only 18 per sq. kilometer (45 per sq. mile).

Land Reform 6f-1950

111. The laws of 1950 for continental Italy and Sardinia, the separate lawfor Sicily and subsequent amendments afford the basic legislative provision forcurrent land reform activities.

112. Laid transformation in its several aspects. is not normally carried out1001 by the Land Reform Arencies: the infra-structures are provided as nublicworks while the completion of the a.ricultural improvements, which is compulsori; left intentionallv to the new colonist to secure his active collahoration

and to awaken his working abilities. This system differs from that followed_LCU UiiLU 1-t:; W1.L ± 4 £ ~UJ III %Je± : ~U0,D CUI% ~V r 1 %I! L IIIW P1

in the Italian possessions themselves in that it is not based exclusively onland expropriation and distribution buu Jams a

(a) improving the land and modern?.zing farming systems and equipmentuso as to increase the yield of present crops or replace themby higher income crops.

(b) providing the basic public anct community works necessary tomake the land suitable for the existence of a rural community,and,

(c) making the peasants themselves do as much of the land trans-formation work as possible, with technical and financialassistance from the Land Aeformr Agencies.

113. Area to which applied. The territories included under the jurisdictionof the various iLand Reform Agencies amount to 8.1 million hectares, i.e.about 29% of the total agricultural, forest and productive waste land in Italyand a little more than one-quarter of the nation's territory.

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114. Exnropriated area. The area expropriated under land reform withinland reorm territories is approximately -'JU7UUu nectareb .e. .1O rJj Une

total. It is distributed broadly as follows:-

Northern Italy 47,5oo hectaresCentral Italy 180,000 "Southern Italy 323,500 "Sa rdinia 104,000 "Sicily 145,000 "

800,000115. In general the highest percentages of expropriations occur in regionswhere private property falls into the largest categories of size. AllItalian properties of 2,500 hectares and above have been subjected to expro-priation; 64% of holdings from 1,000 to 2,500 hectares have been affectedbut only 7% of 100-150 hectare holdings and less than 3% of holdings of70-100 hectares. The area actually expropriated constitutes over 607 of thetotal area in holdings of 1,000 hectares and above but only 0.3% of that of100-150 hectare holdings and 0.037 of the land in the 70-100 hectarescategory.

116. The number of peasant families who will receive land under the reformprogram is estimated at 130,000.

117. Land transformation and colonization. The conversion of expropriatedlands in regions with an extensive cereal-cum-grazing system of agricultureto intensive and other specialized cultivation involves any or all of theusual land reclamation and transformation operations. It also requires thepresence of the cultivator on the land. Residence in hill-top villages,often far distant. is no lonqer appropriate. Hence the land reform programnecessitates the building of tens of thousands of dwelling houses and farm-steads and of hundreds of village and service centers.

Functions of Land Refnrm Agencies.

118. Thp. ftinnfAin. %of lanA rp~ferrn Pnninm in~ rP1nfJe)n t.n expropriqterllands are much wider in scope than those of land reclamation agencies inthat they innlinr nnAnimation of' the Innd q-nrl fnllmr-un nnprations essential

to its success. More specifically the agencies:

(a) improve and transform the expropriated land in whatever

and villages and service centers for the community,

(c) provide initial livestock and implements for each holding,

(d) colonize the holdings,

(e) provide technical assistance and training for colonists inL y orWLie type oi. agriculture practiced,

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(f) provide short-term credit directly for the new settlers forthe first two years and stand security for short-term loansobtained by them from banks during the next two or threeyears till they become established.

(g) organize agricultural cooperatives for the collective useof farm machinery, for the collective purchase of farmrequisites of cultivation, for plant protection and forthe disposal, preserving and industrial processing ofagricultural produce.

(h) undertake field agronomic research, particularly in relationto 1rrigated farming, and demonstrate to local colonists thebest agricultural practices to adopt.

119. It is hoped that the orientation towards new goals of the formercereal farming and sheep-raising pattern on expropriated land will provide

an adequate demonstration to induce private land owners in the same environ-ment to adopt a similar practice. Under certain circtmstances, of course,

they can be compelled by lay to do so.

Selection of colonists and terms of colonization

120. Selection. Preliminary selection is made by the local agriculturalinspectorate from landless people whose number usually far exceeds the areaof land available for them. A second selection is then made by a specialcommission appointed for each comriune. Priorities are:

(n noonl APreAv iYrking on the Inntq. with the orizinal owner.

(b)ponp with tnczi~dr1P.P!1P Pyprip.nne on the 1annti

(c) peple A.tho dor not. already3 posessPq e.nmogh Ind for a Tivin-a-

121 E Tachl faTniyt rmus+.tl=haTe a mnnAin-rno -- u9, t im4f.Q nf h (A Tnnnnit.-as one unit, women, old men, children of certain ages, half a unit each.)

122. Terms: Each colonist is on probation for three years during whichho hS + atiSftr Chiutoita thna+ h= Jo i-nnAblo- Tf 11n.-ftj.fant01-

has~ -- -- -------- _

he is evicted. 7xperience shows that a small percentage of those selectedfails ~ ~ ~ ~~1-, tomk4od-Eitosi the 'Do dlelta to datc have been13- h

colonist purchases the land and buildings of his holding by annual instal-

standing balance. Until full payment has been made the property is not hisown nor± car,L he mortgag it... LnI WiWUOV '1LJ.ULiIIIO Ua1 V CUA"~ CL CL V111:JUj,~

arrangement the land reform agencies guarantee repayment of the short-termodans wofu 5u r sequi;e. 1oVnUoU unU impouents a e pa e ld a

period of 5-10 years, accorCing to the Productivity of the land.

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123. The cost of the land to the colonist is generally a good deal lowerthan current price in the open market, because of the method of valuationadopted at expropriation. Compensation paid to the expropriated owner wasbased on the value of the land as assessed for the purpose of the extra-ordinary levy on property of 1947. Payment took the form of 5% GovernmentBonds payable in 25 years.

Size of holdings

124. In the distribution of expropriated lands two general types ofallotment have been made,

125. By far the greater part (about three-quarters) of the expropriated800,000 hectares is being parcelled into small farms (podere) generally ofareas considered adequate to give full employment to family labor and toyield incomes sufficient to support the family and orovide for the amorti-zation payments over a period of thirty years. In addition, about one-quarter of the total land is being allotted in small units (quotas) of upto three hectares each to local cultivators whose own holdings are insuf-ficient to provide an adequate living or to people who can suppleientincome from the quota land with income from other activities.

126. The size of individual farn.s varies according to the size and laborcapacity of the colonist's family, the type of cultivation, and the produc-tivity of the soil- In opnnral the units are rnughlv!-

3--5 hectares each oln i-rrignted. lann.d,5-9 hectares each under dry farming in the plains,7-Q hPn+nrsq Pnnh in qr)mp r1v fnrmino hill rpainnq

and 10-15 in others,25-40 hnectnae acnh in mnount_ainous.- conintyy, andl enr

un to 100 hectares in a few areas where the

- A - I * 4" V . U V . % d l J .1 1 U L V O J . l . L U .L 1 ~ ~ V J . ~ . V

studies on the economics of different types of farming and holdings of

Institute 'of Agricultural Economics and by the Universities.

128. In some regions the number of suitable candidates for land is solarge in proportion tovt= Ku _,n Lvallevi 'or 'Josv4b"Jo amuong unueu

that the individual allotments made are .too small to be capable of inde-

earnings outside the land. Though it is recognized that allotment ofull_Ls ±UL na ur V IUU 11 U 1-UVJ.UU a. sa.JtUU.L OU.U±ULU1 U.LU21C._L1 LU.

problems, its limited adoption has been unavoidable in the special cir-cumstances preveiling.

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Current Stpte of Progress

129. The land reform program has about reached the half-way stage inpoint of time.

130. The table below sunmarizes such information as it has been possibleto collect on the current stage of progress in executing the main featuresof the land reform program. The data, which relate to achievement as ofSeptember 30, 1956 or later, have been obtained from a number of sourcesand are subject to correction. They cover the work of all the nine. LandReform Agencies and Special Sections which operate land reform on the main-land anO on the islands.

131. tion

Ultimate Currentmagnitude achievement

Area to be expropriated. Sicily (ha.) 146.000 108.000"f " "elsewhere (ha.) 654,00 654:000

Total (ha.) 800,000 762,000

Area to be allotted to peasants (ha.) 800,000 546,000

132. Land Transformation

Area to be opened up initially (ha.) 350,000 240,000Arpn t.n be irri ontPA (hn 110,000 4, 000Fruit trees to be planted (million) 140 70Farm building units to be cnnstrctdoA 6,000 2, 000Roads, water mains, power lines to be

Cattle to be purchased 130,000 50,000

133. Land Settlement

Families to receive land 130,000 214,000Rnral P.mmn4+:rr to + e kndt+ z.A AnFarm Service Centers to be built 250 1904.iJL o ^ onnet-in fJLJ5'am,ts V--i-1 centr~s j.a

and main highways (klms.) 1,250rv.e_"4,.e +- I-.. --. 4n-A 0)ni r7nf)

. I.sJ.V O VW U-_ F-W.QU'IL

11. U .+ ~ ~ uia jJJ 5

' " Q LJ. .5 l *J . 6IL. .5 0 "5LUuarltl allU. V.J L A UI ULI

execution of the program is well forward. Much remains to be done in a

of irrigation facilities for the ultimate full development of large areashas noU udlayed eitn her 4kAhe reuzitrr4LUU.Un Q1 UoU -LUIIU t1o L vL LUre OUU-pants or the beginning of its improvement and cultivation by them.

Cost of the land reform nrogram

135. The public investment necessary for each of the rain aspects of the

prograr. is estirated by the governret to be as follows:-

Cateaories Amount Averae Expenditure Percentage of(billion lire) per hectare Total Expenditure

Land Trans-formation 500 625,UUU 80

Settlement 97 121,250 15.5Cooperatives 10 12,500 1.6Industrialization 18 222500.9

625 781,250 100

136. In order, however, to round off the program in certain areas it hasbeen necessary to purchase some additional land at an estimated cost of 30billion lire. These figures do not take account of the cost of the expro-priated land itself. This is to be paid by 5% Government Bonds redeemablein 25 years (and will be repaid to Government by the colonists in instal-ments over 30 years). The final cost is not yet known. Some expropriatedland has cost little or nothing; the land of two estates in the Po Valleycost 169,000 lire and 106,000 lire per hectare respectively. Experienceto date may not be a fair criterion on which to frame an estimate but, onits basis, in which 40% of the total expropriated land is known to havecost an average of 75,727 lire per hectare, the total cost of expropriatedland would be of the order of 60 billion lire. The over-all cost of landreform vill, therefore. be around 715 billion lire ()1.144 million equiva-lent) and approximately 900,000 lire (1,400 equivalent) per hectare. Ofthis total amount, the Government expects to recover some 150 billion lire(240 million equivalent) from the colonists.

137. The average expenditure of 900,000 lire per hectare is of greaterstatistical interest than of onerative value. since it probably representsthe actual on only a small proportion of the total expropriated land. Inrealitv the cost of land reform operations varies within wide limits. Irri-gation alone may add 500,000 lire per hectare to the cost, as in Sicilywhere the average expenditure on areas completed so far amounts to about onemillion lire per hectare. On the oth,3r hand, in some dry-farming regionsthe total eynantiturp may not exceed half that amount.

Preliminaryr rm~iah qnnrqqrA~ mf' +.t.AfP+ n~f f.hp. InnA rAfnrr nrogram n

agricultural nroduction

138. Available information indicates that even in the current incomplete

in the Naremma is more than double that before expropriation, in SicilyJSJ 4 '-'a' *0A Ja 4U. f 4. J.'.~ 4 W.L..L..

be still greater in all regions; under irrigation and intensive fruitan vteget.le .on ee mted Increa ia of the order of 8otimes.

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139. It has been calculated officially* that on the completion of theprogram the gross marketable production on expropriated land should bemore than double the pre-reform output.

140. The same source estimates the pre-reform annual average grossmarketable produce for the total expropriated area at 40,000 lire perhectare, i.e. 32 billion lire per annum for the whole 800.000 hectares.The basis of this estimate is unknown but on these figures the totalincrease in the value of the annual gross marketable produce as a resultof reform is taken to be at least 32 billion lire.

141. Accepting at their face values the estimates of total new investment(655 billion lire) and of annual increase (32 billion lire) in agriculturalproduction, the land reform program is expected, at this stage of knowledgeof its results, to produce an annual increase in agricultural proaduction ofa value of the order of 5% of the total public expenditure on it.

Final Apnraisal of Benefits.

142. The basis for a final appraisal of the benefits of the land reformprogram has already been laid through a study which isb eing un0ertakenjointly by FAO and the Italian Government.

143. A pilot study lasting a year was completed in December, 1955. It wasdeAigned to determine the bes+ ray t approach the fUll s+udy a +o Ae4

the method. It covered both the farm and the family, and included both thelad efrmcoonisan the pri~.''*a~jJ4.vat land oymner.L

into effect in February, 1956. The random sample method of selecting thehodnswas adopte and'~ the~. reqire dat uan informatLJ Uion~ wereU obtaied~

through two questionnaires - one for the farm and one for the family. Allthe land reform regions except Sicly Volturno and Sele are included.

145. a preliminary report is expectea to e e ready in tne current montn, tnemain analysis tables may be complete by July, 1957.

V. CONCLUSIONS

A. The Agricultural Production Frogram

146. Objectives. The Vanoni Plan, the basis of current agriculturaldevelopment policy, aims at greater productivity of all farm commoditiesbut directs special effort towards major increases in the output of live-stock products, fruits, vegetables and industrial crops. These aims appearsound when considered in the light of Italy's domestic needs and her spe-cially favorable conditions for producing certain of these products forexport. On the one hand, more meat and milk are needed for internal con-sumption to improve the present very low protein diet of the people while,

* Disegno di Legge No. 1626

on the other, climatic conditions in the South and in the islands enablefresh fruit and vegetables to be prcduced anO to find profitable disnosalin the export market some weeks ahead of similar commodities from competingcountries.

147. Attainment. A target of 23% increase in overall agriculturalproduction, equivalent to a 20% increase in the net product in agriculture,over a period of ten years would not seem unrealistic in relation to theactual achievement of an average annual 2.5% increase in the net productduring the four years immedintely preceding the decade. As the Vanoni Planpoints out, however, the circumstances in which that high rate of growthwas attained were exceptional; the rate was abnormal and it woulO be unwiseto rely on its continuation in the lone run.

148. Whilst the somewhat lower tarvet which has been pitched must beconsidered to be achievable, its attainment within the time proposed willderand careful organinAtion unrnitting drive and adenuate technical andfinancial help.

149. Amongst individual products the target seems more easily attainablein thp a of frnits veeables and indu+rial crons than in thnt of live-

stock products, considering the present state of the livestock industry, theeait*t and nat-r .f he other racn .hirh fcz ownnnnion rAn1nq nn

the time required by livestock to reach maturity.

150. It is conceivable also that "reclamation land" may more readilyproduce i-s erpected -A, than "old Aemm land" itf 64% 1_ +of t lan target,

in view, on the one hand, of the magnitude and nature of the land reclama-U.A.IL %JL A±i± . .L UU± ±U L £1U A. Ui Ii I) L j~ .LLU O.I-L 1 .

of the extent of the contribution to increased production vhich the appli-cao n~U of LIjJ i-pr veUd L.LA.LUJ ag ic l la l UL1 Lj L iao~ 111C U VA CLL.LL.-,y .II V-,.L . L CMI

years.

151. Special Reauirements. Since any substantial increase in livestockuepen-A, parLicuLUr±y i Ine Doutn, on a Uropp±rig pubbeli W[IoLUL w.i± iauluuethe necessary fodders, the full use of all natural water resources for irri-

immediately planned may be necessary. The provision of adequate irrigation

1;2a<. ivon-availao±ity of tne necessary supp-Lies of ood seea, fertilizers,

insecticides, fungicides, machinery and other requirements for greater cropprotection seems unlikely to be a bottleneck, but there is need for improve-ment in the extension service and. for more technical instruction to guidethe cultivator in his cropping pattern and the adoption of improved teca-niques. Research to provide the required data for further improvementsneeds intensification and overhaul. Agricultural credit, particularlylong-term, is not available on a sufficient scale at present.

153. Much of the increased production envisaged is of perishable nature:OUen L± LU is h±iglL seasonal also. Satisfactor and± .± proUJL.LOuc-Z-L %AL. VUQO.

necessitates the provision of cold storage in some cases, pasteurising

1ac-L_L.UJ U 1 bQ111Q Lux pl-oue.3bng P±aLulauo 11 Uuuiers.

oome aspects 01 nroduction in relation to 0emand.

T T1_-Vylleat

154. Wheat proOuction as a whole has shown a marked iurabt 11 ±UGu±±

years, largely because of the evolution and widespread cultivation of higheryielding varieties. The increased output of hard wheat has not matched that

of soft wheat, partly because research to date has been less successful in

the degree of improvement in yield per hectare or hard wheat varieties thanof soft wheat. The cause, however, would appear to be partly economic. Inmany regions in the South and in the islands suited to hard wheat growing,this type yields less per hectare than soft wheat. At the same time theprice differentiation in favour of it is not sufficient to counterbalancethe higher yield of soft wheat. If Italy desires to increase its hard wheatproduction substantially the payment for it of a premium sufficient at leastto equalize the financial return per hectare from both types would seem tobe a necessary incentive until research produces higher yielding varieties.

Rice

155. Though not a crop of great importance in Italy, nor likely to becomeso, except in limited regions, reliance is placed on the foreign market fordisposal of part of the production. Difficulties in marketing are experi-enced, particularly when falls in the international price occur. Adjustmentof production to probable demands at home and abroad seems necessary.

Sugarbeet

156. Sugarbeet is one of the few industrial crops and by far the mostimportant of those crops grown in Italy. It is a valuable cash crop. onsome irrigated holdings it is the principal source of income and even consti-tutes the main crop.

157. The growing of sugarbeet has now reached a stage where the productionof sugar exceeds the domestic demand. Cost of production is high and thereis no outside market for the surnlus. Yet sugarbeet is intended as a princi-pal crop and a valuable source of income from lands which have been reclaimedand transformed. particularlv under irrigation- in many regions- Even underdry-farming conditions with winter sowing it is contemplated as a crop onheavy soils not suitable for citrus. in Sicily. The Cassa's land reclama-tion program, when completed, is expected to add annually some 5.8 millionouintals of sugarbeet (annrnaching 1 million onintals of aar) to nr.nt

production.

158. Obviously it is necessary either to reduce production so as tocorrespond with demand or to increase consumption. The former coursewould deprive cultivators of a valuable source of cash income with littleprospect of a satisfactory replacement. The future of this crop voulaseem to lie, therefore, in action towards the latter goal.

159. Sugar consumption in Italy is only some 16 kilograms per head perannum, though this rate is said to be double that in pre-war days. Withthe gradual improvement in living standards and their expected increasedpurchasing power in the years ahead, demand may be expected to increasebut that expectation neither solves the surplus production of the presentnor is likely to absorb the greater production of the future.

160. Sugar is a highly protected commodity, subject to heavy taxation andimport is not allowed. Internal prices are kept high - too high for thepopulation as a whole to purchase what would be regarded as a normal percapita consumption in other continental countries. A reduction in theretail price of sugar, enforced if necessary by a lowering of the taxdswould seem to be the only means of matching demand and production.

Nine

161. In the transformation of land it is recognized that possible diffi-culties in disposing of increased production of grapes and wine make itnecessary to avoid too great an extension of vine cultivation. Neverthe-less, the special suitability of certain localities for grape growing,their relative unsuitability for other purposes and the lack under dry-farming conditions, of any other cash crop of early maturity make unavoida-ble the planting of some new area under this cron. For these reasons theincreased production from the Cassa's 12 year program is estimated at nomore than some one million quintals of grapes- a small nronortion of oresentoutput, which should find easy disposal under suitably organized marketingarranPPm-nt.. The Vannni Plan al.o cnnnnntontmh . hv IQAL thp nontri-bution of wine to the value of the total agricultural output in Italy willfal1 hr 1W7 from the 109 fiNres nnA that the nyonition indr will beonly 104 (1952 = 100).

Fruits and Vegetables

162. Italy's ability because of her favorable climatic conditions in the5,nn" +T riie +n fite onA 1&wansfo 4% + ha fPe-.Ma4 rn- l ma a 1V on i oilhaAof her competitors would seem to ensure the success of her policy of in-crena +ha vnngn+ h-. +k-na mmnA4+4 a

ration of the produce for the market, but also the presence of adequate cold

fresh produce. It further necessitates the provision of facilities for pro-This prov su be con annou iLn.Lisp L eJnsbLe.L U.&POL LprL UU te. inCUe

This provision should be considered an indispensible part of the increasedprod-acti~ P-L_gramt.

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Livestock and Livestock Products

164. In Italy the per capita annual consumption of meat (25 kilos.) andmilk (65 litres) is no more than half that of France. The nome marketshould easily consume the entire increases in production expected of arounda third over 1954 levels.

B. Land Reclamation

165. The degree of benefit from land reclamation varies from region toregion according to local conditions, to the type and extent of the reclamna-tion required and to the nature of the changes in land use which follow thecompletion of the work. In the present stage of execution of the full pro-gram it may be early to attempt an appraisal of the exact degree of economicand social benefit which its completion will confer on the national economyand people of Italy. Later experience as development progresses may vitiatedata now used in making the appraisal. Hence it seems desirable to considerthe Cassa's analysis as requiring review with resulting confirmetion or modi-fication from time to time in the light of more data and knowledge gained bygreater experience.

166. Subject to this qualification, however, the Cassa's study of theeconomics of land reclamation and transformation provides the basis for someimportant and useful tentative conclusions, such as:

(a) Even with no change in the land use pattern under dry-farmingconditions reclamation increasegross marketable productionby 2j times, doublesnet output and increases profit by 60%.Where. in addition, some 20% of the area has been planted toolives, almonds and vines these increases become nearly threetimes, two and a half times and 80% respectively.

(b) Under irrigatin- with mixred farming nf nrdinarv croos andlivestock, the profit is five times that obtained fromimnroved dry-farmed land with an unchanrPrI Innr nise nntternt

irrigated citrus growing attains a pinnacle of profit 33 times

(n) The labor abnrhino nnnaity nf the recnimed and transformedland is from two to four times greater than previously, accordingtoth tyeotrnor ton

citrus-growing treble, that for the ordinary dry-farming

agricultural program may not be considered outstandingly attractive. Itbeeft whic.LJV e.s forV thVe4 p rACm. t View.LVLQ Uo tJh lhoL- a -

benefits which result for the program. Viewed from the short-term angle -

LulJl4u wlu1 Ft::..LUU V±L UuJvt::L Lually Years~ -S aJ~J) major L re u of I th Wlhuetton

-32-

program is its reduction of unemployment and underemployment, and hencesocial contentment in the country, particularly in the South. Labor costsprobably account for more than half the expenditure on reclamation and theprogram provides millions of work-days of gainful employment which wouldnot be available otherwise. Of no less jincortance is the long-term aspect.Permanent employment will be assured for a greater proportion of the laborforce both in apriculture and in industries deriving their raw materialsfrom it. The Cassa study concludes that the labor requirement of trans-formed land is from two to four times that of untreated land, accordingto the type of transformation. The social costs of the program are, there-fore much lpsR than the fures given i- .- n aninction should be madefrom the wage costs of what the irorkers would have received in any casewhen thev wre innmnnnvPd or undermploved and making no contribution tothe national product.

168. No study has been made of investment which must be incurred in the

products. Nor has any evaluation been made of the financial benefits which

which wili ,:_tilize raw products forming part of the increased production.

doubtedly result under the stimulus of example and demonstration which thej.J~ CUll~ L ~ t1..LL U1COU LIV.WUVV .Ly O-Z UCL1.LLJLV -V:Mk.UQ V 'X.l .U I -~ 'J '*

attraction and value of the program.

169. From all these angles and neglecting less tangible aspects, such asthe effec o _esu - U- v LoPm t on n uUJU t:J..%:U U. bU;e _U1 II i ELUtLU± CLLIU %oUiII UI 4 U

the local population, the program must be regarded as of the greatest impor-aie Lo Wne nulaon. in Une DouVi wue.ue mo' u 0 .ne Ulimj z eau±wjltuj.JonL tu

transformation activities are programed and under execution only about one-un.rd 01 fUte total area proposea e od f ea umnu -c p-a nnAur w P omp- -u.u v y

1962. Obviously many years will elapse before the full program has beencompleted and the national econony has begun to feel anything approachingthe full benefit of the labor and funds expended on it.

C. Land Reform

170. It is clear that progress all round is substantial and that theexecution of the program is well forward. It will not De possible toevaluate the results of the land reform program for several years to come.From such data as have been obtained.so far, however, the current viewthat agricultural production over the complete area under reform will beat least doubled does not seem unrealistic. The degree of increase on theareas under intensive development ill, of course, be very much more thandouble.

171. The FAQ/Italian survey now in progress will provide a good basisfor an ultimate assessment of the benefits, with intermediate evaluationsas time goes on, both to agricultural production and to the colonist.

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172. It has to be borne in mind that the benefits arising from theexpenditures on tne lana reform program are not Conaine1" tu the UC;U1.L.LUQ

only. The whole rural population shares those arising from the publiccommunity works. Further, not all the benefits are tanglible and no aSsess-ment based on lire alone, or even combined with the affect on labor, canever present the complete picture.

173. The changed concepts of land development and settlement mark a greatstep forward from those of former days. The colonist is a partner in ajoint undertaking and he must make the necessary improvements in his indi-vidual holding, but he does so under technical guidance and financialassistance from the land reform agency. All the elements for successappear to be present and the ultimate effect of the land reform programeconomically and socially should be very considerable.

174. Finally, the effect on the general mentality of the inhabitantsthemselves must be immense and the impression no less indelible than thatmade on the mind of the traveller as he passes through a countryside ofneat houses iid villages surrounded by well-tilled fields and prosperouscrops where hitherto he had been accustomed to a trackless landscapeundeveloped, uninhabited, sometimes even inaccessible and bleak.

D. The Agricultural Budget

175. Owing to the manner in which the budget of the Ministry of Agricultureand Forests is presented and to the fact that some additional funds areavailable from other sources it is difficult to determine the exact extentof the expenditure on agriculture, but the following is believed to representthe distribution of the budget provision of the Ministry for the currentyear:

Head Billion % OfLire Total

Agricultural develorrent 3.150 2.76Extension and research 1.109 .97Animal husbandry 2.811 2.47Agricultural credit and marketing 3.900 3.42Mountain development and afforestation 15.200 13.32Land reclamation, irrigation, land

improvement grants 21.200 18.58Land reform 45.000 39.45Personnel 15.700 13.77Indemnities against droughts and floods 3.000 2.63Miscellaneous - oame fisheries, etc. 3000 2.63

Total 11L070 100

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176. The foregoing omits 88 billion lire budgeted for the specialagricultural activities of the Cassa per il Mezzogiorno.

177. The provision of 114 billion lire places at the disposal of theMinistry of Agriculture and Fisheries a sum which represents 3.81% of thetotal national budgeted expenditure of 2,9r1 billion lire for the year.

178. If to this sum are added the 88 billion lire allotted to the Cassafor special agricultural development and iprovement it might be consideredthat agriculture in its wide sense (embracing agronomy, animal husbandry,forests. fisheries and aame) was provided with 202 billion lire or about6.75% of the national budgetary expenditure.

179. Lack of data regarding provision made from other sources, e.g. grantsof the 1inistry of Education to Universities for research purposes, makes itimpossible to estimate the position with greater accuracy but it seems proba-ble that at present the total expen-iture on agriculture is about 7% of thebudget.

180. Whilst 7% of the total national budgetary expenditure might not beconsidered unsatisfactory if it represented the normal exnen6iture on agri-culture, the position appears in truer perspective on examining the distri-bution nf this nrnvision Frr%m thp rltpilq oiven in the fnrP.ain table itwill be seen that of the 114 billion lire in the Ministry's budget 81.4hillion lirp r.nrPemnf. Pv+.onrelinnr rnitrrn neirtin fnr nnninl lanlimprovement activities, which are not a usual or permanent feature of anArinu+xran DI e pr n+.ta irr%rk

Mvinistry of Agriculture and Fisheries amounts in reality to only 32.67 billioilirePor 1.0Q ofthe +tot+l+n ationna+udgetary exenditure for the rear, a

truly small proportion for an industry which provides 20% of the gross

''~- .L tA U _L tA.LonhA... o ' ---- ul --. t, L L ULL .7 :

Agricultural credit and marketing 11.93gr~. c-6-"kX-Xa.L U~V±UI~1 J_ *-Ms ou"u I leveloruen' -. *.U4

Indemnities against drought and floods 9.19

Extension and research 3.39PJLisceiL_a,n-e0uS -- Kanef fisheries,11b etu.ue__

'-35-

183. Scme of the provision in the budget is for special projects whichwill extend over a period of years. On the other hand, the provisionappearing under some heads does not represent the total expenditure underthem.

184. Agricultural Develonment. The provision of 3.15 billion lire includesa special sum of 2 billion lire for a 5-year program to replace olive treeslost by the severe frost of February, 1956.

185. Extension and Research. The provision of 1.109 billion lire does notinclude the salaries of personnel employed in either of these importantactivities.

186. Animal Husbandry. Of the 2.811 billion lire 2 billion representprovision for a 5-year plan for the develooment of livestock by imports,breeding, insemination and disease control.

187. Agricultural Credit and Marketine. Part of this provision is expendedon the 2% and 1W contributions which Governrent gives towards interest onloans incurred for private development and the purchase of small agriculturalproperties respectively.

188. Personnel and Administration. This provision of 15.7 billion lireincludes all personnel in the Finistry, administrative and technical, re-search, extension et,

189o The all-enbracing nature of same budet head nrticun1r1v thosecovering extension and research, personnel and administration makes itimpossible t dtermine ant.1v the amonnt of the nrovision made for eachactivity. This is a serious defect of budget presentation for purposesovf an.alysis.

190 So long 1 asN. the special prF ---s of lan re1 .c,lamation an rev'forym

continue the annual budget of the Ministry must also continue to show alarge4 + la expndiurAe buLt Li cn be + forgottJ++en +Lat normal departmental activities cannot yield their full dividends unless they are ade-rn -1--te fin,anced As an M-U-Ule technics., al stafPf whethe insv th l,4I-1abo rtow"7

or in the field, cannot discharge their functions efficiently unless they

the research and extension staff are inadequately equipped and financed atpresent.

1917. The VanoiUL Plan counts on 640% of the xpete ±icrease agriculturl0.

production by 1964 over that of a decade earlier being obtained from landsalradyunder culti.,vati±ono.± i j~ tha exettini tou be relie an W-LUcal

expenditure on the normal activities of the various departments of theMinistry of Agriculture and Fisherie, considerably more than the present1.09% of the total national budgetary expenditure, seems unavoidable.

- 36 -

results are the source of origin of all improvements and developmentsndr the fonato o.n which t.11e rest. fi=ll vlnini i+ rmre-r.qi.

varied and the scope which it offers is immense. Further, its nature

agricultural country can give that guidance which will bring to the

national prosperity. Unfortunately the supreme importance of research

is basically agricultural.

193. Organisation. Agricultural research is carried out by a varietyOf institUtions11, some1 governmenJftaUl, someU pri_Vate,e.g

(a) By experinental stations, forty-two in numer, financeUjointly by the inistry of Agriculture and Forests andby local authorities, but mainly by the former.

(b) By universities, of which there are fourteen. iney arefinanced by the Ministry of Education and have their ownland and other facilities. Some specialise in theirlines of research to a greater degree than others.

(c) By commercial organisations interested in particularproducts, e.g. hybrid corn, sugarbeet.

(d) By organisations such as the Italian Federation ofAgricultural Cooperatives.

(e) By land reform agencies, particularly in connection withfarming under irrigation.

194. So far the most outstanding results from research lie in the pro-duction of improved varieties of certain crops, particularly of wheat,corn and rice. Production of fruits such as grapes, peaches, apples andcitrus has also profited from varietal research. In general a good dealof information now exists on the economics of fertiliser applicationthough it still is inadequate in its relation to newly irrigated land.Knowledge of control methods of the most serious crop pests and diseasesis usually good and control treatment of some is compulsory by law.Marked improvements in crop yield results from deep ploughing by tractors.

195. It is impossible to determine, even approximately, from the budgetof the Ministry of Agriculture and Forests the total anual expenditureof the Italian Government on agricultural research, since budget presenta-tion lumps together the financial provision made for it and other services.

such as extension. The budget provision of 1.109 billion lire for extension

(a) Experinental stations, running expenses 1upu milion iJre(b) Extension services, expenditure on pilot

farms, prizes of dliferent kinds, etc. 3C0y(c) Agricultural cooperatives 30 " "(d) Equipment for experimental stations 329

Total 1.109 "

196. It would seem. therefore. that the budget of the Ministry ofAgriculture for 1956-7 provides 779 million lire for the running and equip-ment of exerimental stations. The salaries of technical nersonnel are notincluded. It is understood that this staff totals some 230 workers of degreeqttAtuq. 3q of lower tminial analifi-t.ions and -me 100 inferior staff.

A guess was hazarded that the annual expenditure on salaries might be of theorder of 700 million lire

107 The aditiNn nf this sum wiuld brine +.he wrnandito n resIPvea in1956-7 to approximately 1.5 billion lire, but there is no means of checking+h dge o f a----u-,-aC,r of +h4 + +Innd

4+n-c nP +ho+ unm o.vranl4

represent only some 1.3% of the total budget of the Ministry of Agricultureand Forests Or sOMe 0. of the budget when sPlecial land-c re cl aatio n andland reform provision is omitted. These percentages are small when reviewed_L1 A J._.LCLV.1.VJi1 U%.J Uli- 1 L .4I.JJ ~ Oi.~ J V1 f xe m ai, bubA fox ma el vhe du.J m t..L~ g~L ~~J ~ -' - e ~the complete picture since expenditure on research by Universities and other

CJ.~J~. L.U110i J-0 IiL, 1'i U.LA.UU

gULJ jEL ts L-- - U 1 11-U

.Ly u. Uwing to ue. 6caZUu 1 rgaU 1_aLU11 U Iaxwn Lua Z; m nrouguou'.U

the country only a few centers could be visited. From observations at themand Jrom u35cussion with deparTment personnel and outsiae imormeU opinionthe following general impressions were formed:

(a) The number of research centers and stations is excessive.Too much money is spent on baSic facilities and provisionscommon to all such stations: too little is available foressentlal research purposes. A few w.ell-equippea, ully-staffed and strategically located main regional centers toembrace the major soil, farming pattern, climatic and otherimportant conditions, supported by the necessary small sub-stations to cover the finer adjustments, would be likelyto achieve better results and be more economical of expendit-ure and technical personnel.

(b) Research is understaffed in general. The salaries paid arenot sufficient to attract or to retain the best workers.

(c) The funds allotted to research, particularly in regard tothe day-to-day requirements of equipment, consumablestores and general running expenses, are inadequate.

- 38 -

(d) There is considerable concerr among University staffregarding the position of research, in regard both tosecuring good workers and to funds. Universitiesdepend for their research grants on the inistry ofEducation which spreads such funds as it has over awide range of research, in addition to agricultureand the amount available for the latter is too small.

(e) Research is of two main kinds - fundamental andapplied. Universities at present engage in bothand have inadequate facilities. It would seem prefer-able that the orientation of University research shouldprimarily be towards the fundamental aspect and thatthe aplied field should be left to the researchcenters of the Ministry of Agriculture and of theother agriculturally-biased non-official organisations.

(f) The present organisation of agricultural education isriot conducive to turning out research workers in thedifferent applied sciences in that there is no speciali-sation in the degree course. Every student, irrespec-tive of the nature of his future employment, has toobtain the four years general degree in agriculturebefore he can begin to specialise. Specialised studyand training must then occupy a further three yearsbefore the student is qualified for a research appoint-ment under the Ministry of Agriculture. Few studentscan afford so long a period of preparation. It couldbe reduced by specialisation in the third or fourth yearsof the degree course.

(g) There is a very real danger of inadequate coordination,overlaDDing and omission in actual research work owingto the considerable number of organisations which en-gage in research.

F. Agricultural Extension

199. Service. Agricultural extension services, general or with specialorientation, are provided by a number of organisations. They include:

The Ministry of Agriculture and Fisheries;Land reclamation and land reform ;Lencie;The Italian Federation of Agricultural Cooperatives;Fnrtiliser manufacturing nnmnaninsSpecial Consortia for technical training with funds

Farmers' syndicates with funds from the Ministry of Labor.

This list is not necessarily exhaustive, nor do all these organisations.5. L.tL±'. jnLA~ nvr-S -eV~J a*

- 39 -

200. The principal extension service is provided by the Ministry ofAgr iltr a,,.- A V -+ T+ ; orgn- ; se cadm ,n,-1 Ae-nnatrel- r_r +11n Nnaqt

-~. tL UA.J.' ~ . * .J .J 0~ - V vLh -J. -AU1.i.JV±

of regions, provinces and communes, the last two being in direct touchV.Lul J IV Xj1 LCI. II)i ~

Agriculture.

202. A Provincial Agricultural Officer heads the staff of each province(92 in aLl) anu with hum at heaudquarters i a group of specialist officers -e.g. animal husbandry, plant protection, fruit and vegetables, land reclama-tion and reform, statistical, pools, etc. according to re quirem ents of theprovince.

203. Each commune is staffed with an agronomist of agricultural degreestatus and an assistant who has spent four years at a vocational agricul-tural school.

204. The commune or section is the basic unit for extension work in Italy.The specialist officers at provincial headquarters have the whole provinceas their sphere of activity.

205. For touring purposes each provincial headquarters is provided witha number of official cars. Some commune headquarters also have one smallcar. The system of privately-owned vehicles (car, motor cycle, etc.) forwhich a mileage is paid by Government for use on official journeys doesnot seem to be adopted.

206. From answers given by extension officers at various centers itappears that the extension staff spends an average of 15-18 days monthlyon tour in their areas and that very roughly 50-60, of all farms arevisited.

207. Supplies. Facilities for the supply to cultivators of their require-ments of improved seeds, fertilizers, fungicides and machinery are good.In the nuclei stage improved seed varieties are multiplied directly onGovernment farms: subsequent multiplication, prior to distribution tocultivators, is done on private farms under authority and inspection by theMinistry of Agriculture. Commercial organisations also produce improvedseeds. Demand for some seeds is said to be slightly higher than production.Nitrogenous and phosphatic fertilizer requirements are entirely manufacturedwithin the country: potash manures are imported. Insecticides and fungi-cides also are manufactured internally.

208. In the provision of agricultural supplies the hundreds of branchesof the Federazione Italiana dei Consorzi Agrari, scattered throughout thecountry perform services of inestimable value. The Federation produces orobtains and distributes a large part of the cultivators needs in selectedseeds. fertilizers. pesticides and machinery: it operates machinery Poolson a large scale; it provides extension staff in each province and an infor-mation service for farmers; it runs short courses of instruction for some

- 40 -

thousands of farmers annually; it supplies short and medium-term agricultural

operates cold storage plants and processing factories for agricultural

fresh vegetables; it acts as the agent of Government in relation to pools

cereals.

Expenditure

209. No estimate of the annual expenditure on agricultural extensionser- 1 VL e.- L- U- L - d t,± __ L __4-1- _P, - ~ I - ' ~ -41 -u~ - . -- -- -A_ 4

of the Ministry of Agriculture and Forests is not sufficiently detailedarid partly-------- so mame contrbutio to11.VU,L1 U Ltm

.L. 16 was suggestea, nowever, that 01 tne provision 01 1:.( 0111011

lire in the Ministry's budget for personnel and administration, someSbillion roughly might represent the expenditure on technical staffemployed on extension work. The number of that staff was placed atabout 3,400 but it includes staff employed on duties not of a strictlyextension nature such as the implementation of regulatory laws and com-pulsory pools.

211. In addition, on the forestry side, a staff of some 450 officersof degree status, 200 vocationally trained foresters and 4,200 forestguards may account for some 4.5 billion lire of the total.

Observations

212. As extension services are performed by a number of organisationsthe need for adequate co-ordination of activities amongst them isapparent, if overlapping is not to take place and amissions are not tooccur. Although it was said that all work to a common program, it seemeddoubtful whether the present degree of collaboration and the division ofterritory and labors ensure the maximum possible return from the expendi-ture incurred.

213. Extension work is a missionary type of service: the supervisionof the implementation of compulsory laws and regulations smacks of thefunction of a police officer. To achieve success in the first, persuasionand voluntary cooperation are involved: the second operates more harshlyand less agreeably. If a cultivator has to be forced to treat his vinesagainst a pest or disease he is unlikely to respond sympathetically to advicefrom the same source to try a new cultural practice or an improved seedvariety. Though it may be economical of expenditure,--the inclusion amongstthe functions of an agricultural extension staff of duties relating toregulatory laws should be avoided.

21h. Extension work in areas undemoing land reclamation and land reformappears to be done by the special staff of the agencies. The normalextension staff of the Ministry seems to play little. if any, part in it.A closer association of the latter staff with the development and

- 41 -

transformation of these areas would have advantages of which not the leastwould lie in the acquisition by them of knowledge and experience which couldbe used profitably in outside areas. The agencies are temporary institutionsand this work will pass eventually in any case to the regular extension staff.

215. Transport provision for touring and funds to meet every-day expensesincidental to extension work were considered everywhere to be insufficient.The maximum return from expenditure on salaries cannot result if the per-sonnel are not provided with adequate tools for their work and to enable themto spend a greater proportion of their time in the field amongst the culti-vators than they appear to do at present.

G. Some Plans for the Future

216. The various government authorities and organizations concerned withagriculture have plans for the further extension of land reclamation andirrigation, for more emphasis on industrial agriculture and for betteragricultural credit arrangements.

217. Some of these plans are outlined below:

Land Reclamation

218. Agricultural policy aims at both increasing agricultural productionand changing the composition of agricultural output. Land reclamationplays a major part in the attainment of these aims. Over a long period ofyears it has converted large areas of marshes and swamps. formerly sub-merged and economically useless, into rich agricultural land amongst themost fertile in Italy. In recent years and currently an ambitious programof land reclamation and land reform is not only bringing under fuller useand PrAnter nroduetion large arnas of Mtherto under-utilized land but istransforming them from the time-honored cereal grazing pattern of land useto a morA diverqified better hqlanced and economically aunerior apriculture.

219. Thilst Yminh has. been anhiwirsd in~ +.ho -rclan.tJon of wtrogdAndisubmerged soils, there remains considerable scope for an extension of thesemeasurAA to similar land, nrtrairn1v in the reinn of the Pn dltn wherean area of some 40,000 hectares (100,000 acres) could be converted within anArind of ten vanrn int.n rje'h nagriultural Inna nunnble hnth of makIng A

valuable contribution to the economy of the country and of providing employ-ment and a settled, asmuraA 14llihod to sme than mannAanf nnllom nPon1e.

2201 The raca per" 41 +vezgonoeta hat regrclkmatIon in theo Soutfhwill have been completed to the extent of only one quarter (much less inone land enory) of the tan ara IncedAaA in its large land Arelamationprogram by 1962 on the expiration of the Cassa's life, as sanctioned atproram, Ahw4 l 1 synapA4 on.?A h4 nw,lwnA 4n nammi +4 a

program,

- 42 -

Irrigation

221. Although the provision of irrigation supplies is not vital to thepursuance of an agricultural pattern of any sort in Italy, as it is insome tropical countries, yet their use can confer very material benefitsin regard not only to the amount but to the variety of agriculturalproduction.

222. In general, irrigation finds its greatest use in Italy in makingpossible the intensive cultivation of highly profitable fruits andvegetables, the growing of industrial crops of which Italian output is alltoo small and the production of an all-the-year-around assured supply offodders without which an adequate intensification of livestock raising isimpossible. In all these spheres, as well as in the higher outturn ofordinary crops when grown under it, irrigation has fully proved its meritsand economic importance in agricultural development in Italy.

223. For this reason ane also because it affords one of the best invest-ment returns in agriculture, the development of irrigation resources isone of the main planks of agricultural policy in Italy.

224. Partly because of the nature of much of the terrain and partlybecause of the scarcity and often, as in the South, the complete absenceof large rivers for gravity flow, individual irrigation projects involvinga commanded area of even one hundred thousand hectares each cannot be afeature of the future pattern of agricultural develoment. Few, if indeedany. projects can eaual the 80.000 hectares of commanded and the 40-50.000hectares of annually irrigated land of the Flumendosa project in Sardinia.

225. Yet there exist in every region of Italy - North, Central andSouth and the islands - sources of' water which- if developed. can help todiversify agricultural production and race a valuable contribution to theenuntry's Annnmy- Thp uiili,7.tAnn nf thp..q eninnlipaq 4nvnlvP.. thp- builinto

of diversion barrages across rivers in some cases, the construction of storageAnyn In t. hilla 4 e%+t.hnv a nl +ba ninl-4na -P +ihai.lla +l- fan einravainnlwaters in still others. The ultimate supply will be by flow in most but itwill be hv Anrinkle or snny irriantIon in nme regwins.

22()- Pu3reuino itsc nr%lir r%if' An-typle%inat i+-ate+.-" ro.qnirnma fnirrastAn

Italy has a number of projects in the South in various stages of construction.There are others, not yet sarted in the MNthern and Central regIns as wellas the South.

227. The completion of the uncompleted projects (excluding the Flumendosa

not yet undertaken, would probably add some 300,000 hectares of commanded

area now receiving irrigation - a material increase.

- 43 -

228. Some circles estimate that the area which right be irrigated (includingprojects in the Cassa program) is as much as 800,000 hectares - 450,000 in theSouth; 350,000 in the North.

Industrial Agriculture

229. A major feature of agricultural policy is an intensification of theproduction of fruits, vegetables and industrial crops, partly for domesticuse but largely for the export market. This is to be achieved by the landreclamation, transformation and reform programs, supported by private pro-duction wbich the provision of irrigation through those programs will makepossible,

230. The Cassa estimates that the extent of the increased annual outputof the main products wihich will result by 1962 from its own developmentprograms will be of the order shown below. The figures do not includethe increased production from the operations of other similar organizationsor from. private enterprise.

Million quintals

Oranges and tangerines 5.7Othpr frilit.. 1.1

Potatoes 1.28Other vegetaben 4P5Table grapes 1.1Meat .70Iilk 1.35W:Ui 1.7 (mill h.nt.-

litres)

Tomatoes 1.95ToaMcCO 411

-P ~4 4,4 -4 S Seso in naure . 4 k-k4 4ok r

some must be processed before it can be utilized.

232. In the absence of special facilities for holding over supplies of

market's ability to absorb it and when prices are favorable, gluts occur,

vision of plants of different kinds avoids such a situation. Cold storagekueps fruis, vegeUaULe5 n meat fresh: pUaseursing planu make itpossible to transport fresh milk to distant markets without spoilage;fZctories and processing plants convert raw atrm prouuce into their finalcommodities,

233. Plants of this nature are necessary to the successful and profitableproduction of these crops and an indispensable adjunct to it. Privateenterprise and producers' cooperatives have provided them in some parts ofthe country. In several areas now coming under intensive development theydo not exist; in other areas where production is being stepped-up existingfacilities are inadequate to handle the increase.

234. Ownership of plants of these types by cooperatives of the producersthemselves is favored as a means by which the producers are both assuredof a market for their farm output and retain amongst themselves the profitswhich otherwise would go elsewhere from the processing of their raw materials.These plants will be sponsored initially by the land reform agencies; theywill handle oroduce both of new colonists under the reform and of privateproducers, and eventually will become the property of the producers' co-operative associations.

235. The number and nature of the plants reauired will vary with theagricultural production programs of the different regions. They willinclude any of the following:

(a) Factories for the manufacture of suear from suparbeet:(b) Factories for the production of wine from grapes;(c) Plnnts fnr Axtraing and reftning nil from olives!(d) Factories for the manufacture of cheese from milk;(e) Tnhon nring nlantt

(f) Fruit, vegetable and tomato processing and canning plants;Nr) RefriaP.rntred qtnrnp fnr frPAh friit. and vegetables!(h) Milk pasteurising plants;(I Plants for the old tor aen and handling of mnt.

21( Rn ar-m outputif of the vanrious. prriinuca is alreachy JnrPeas-nrr_ As thp.land development program progresses it will grow steadily. The interestso-Pfthecuiatr reqmArez flia early np-ovIsIonn of thi.q nature henmApe forhandling their produce.

Credit for land Improvement

237. In present development conditions in Italy agricultural creditrenurements must be conednrelst4on to new olonists undo +.he

land reform program and to private land owners separately.

238. Colonists. The present credit needs of the land reform colonist

repayable at harvest. The extent of these needs is said to average from.* J."JWO U VO %J%J .J 're ±~ I~ per heLi1ta .-UCaJ LlJ I~ .L.11 -J U4+ 41 - .~J.~

usually required since the land reform agencies have stocked the holdingsunLy recenly with livestou a .u inacul_nery jor WuIILu -oans of tu.Luare generally intended. The colonist has no long-term credit needs so far.

- 45 -

239. Ability to obtain the necessary credit offers no serious problemto the colonist. The land reform agency finances him initially for thefirst year or two and then stands security for such loans as he obtainsfrom banks during the next 2-3 years. Thereafter he must rely on his ownability to raise credit.

240. The land reform agencies find the burden of financing loans heavy.Their credit funds are not revolving in nature but are taken from the generalfunds as required. They are said to have afforded so far credit to theextent of 27 billion lire of which some 80% has been repaid already.

241. Private Land Owners. The.credit position for the private land owneris less satisfactory. He can meet his short-term crop-to-crop needs byborrowing from banks authorized for the purpose on giving "Farm Bond"on his crops. or from the Consorzi Agrari from which credit in kind isavailable as seeds, fertilizers, insecticides and foodstuffs on the securityof a similar Farm Bond.

242. For longer term needs. such as for land transformation credit, theprivate owner's position is more difficult. His problems are:

(a) Lack of availability of adequate funds.(b) A lengthy and laborious bank administrative procedure

associated with proof of legal title to the land forthe past thirty years.

(c) Heavy security required and based on extremely conser-vative assessment of the value of the land.

(d Hioh bank interPet chargesn onlans - 7 to ft np.r nnium-plus 1% on the amount of the bond.

243. Government has tried to assist in medium and long-term creditfinannina -n nit.finc Qt. tha A4_nr%t2a1 ^ff ai.h^r4.mA e-rA4 hanlen a lap

sum of money at 2% interest per annum. The banks lend out this money atTA'^?-r +hj a m-inn^an%O th m a c ta Re 'TJ -f P~inA -'..v , i kj

t--- -- -- ~ J t.. ... J -- J4-- - -w4 -- h Goven.

ment provided annually for the five years 1951-56 a sum of 25 billion lire -total 125 ; l 1 4 (AA m41n uh4r, sn nllana+o.

for agricultural machinery.

for farm buildings and (6 years) for irrigation.

- 46 -

Government also aids in nrivate land improv3ment by:

(c) meeting 2-1/2% of the bank interest charges on loansraised for nrivate land development or 4-1/2% ofthose on loans procured to acquire small propertiesfor direct peasant cultivation, or by

(d) contributing (when funds are available) 33% of theexpenditure incurred by private owners on approvedland improvement in the North or 38%0 in the South.

244. The Revolving Fund has met the need fairly well up to the present,particularly for farm mechanization which has profited most from it.Government's additions to the Fund have now ceased; all the originalprovision has been loaned out; the amount now available each year forfurther loans is only the sum repaid each year on matured loans plusthe interest collected during the year. The total amount available issmall yet in rel!tion to the demand.

245. Few private landowners nossess the necessary capital to finance landtransformation on a large scale. Borrowing is essential for the averageowner who wishes to follow the examnle of better land use set by the landreclamation and land reform agencies but loans at low interest are notadeaunately availphle And ennaitions on which loans are available are oftenimrpossible to satisfy. There is urgent need for a revision of the presentcrtrnnd t-nrIiAnr, on which loansc are. arnnted-rl

47-48

Table 1

Area and production of the orinciT)al crovs

Area - (thousands of hectares) Production - (thousands of uintals)

Cr.o33 ... 15 1.952 1953 19-14 19,55 -1916(a)_ _1951 192 1953 195:, 195,5 1956(a)

wheat 4,728 4,682 4,770 4,770 4,852 4,878 69,620 78,764 90,565 75,507 95,055 86,813Rye 96 94 93 86 82 74 1, 223 1,265 1, 296 1,151 1,249 :L,067Barley 251 253 250 248 244 237 2,704 2,669 3,126 2,775 2,919 2,7540ats 462 465 457 452 436 423 5,096 5,083 6,021 5,457 5,285 5,064Rice 156 174 176 179 169 14-3 7,500 9,300 9,342 8,589 8,589 7,048Mai ze-_- 1,267 -127 1,272 1.,274 1,270 _. 270 27, 483 23,96 32, 133 29 4 3 93 3,500

Total Cereals 6,960 6,941 7,018 7,009 7,10 27,2 1,626 121,037 142 483 120,12 14,5,033 136,2

Horse Beans 558 555 558 560 554 539 4,665 3,489 5,337 5,336 4,641Kidney Beans 458 448 443 442 429 413 1,541 1,155 1, 648 1,633 1,437Chick Peas 107 102 104 101 98 91 565 442 614 566 538Potatoes 387 393 393 397 392 389 28,584 27,170 31,320 31,831 33,982 34,300Tomatoes 84 82 90 96 97 96 12,526 11,053 13,681 15,343 16,174 13,500Vegetables 161 160 167 172 178 21,306 19,818 21,594 22,659 22,079Hemp 51 56 54 34 34 36 651(c) 67 744 419 341 370Flax 18 19 18 18 16 44(c) 34 36 29 25Cotton 29 48 26 41 54 54 55(c) 69 7 97 138 120Sugarbeet 198 222 210 224 257 225 59,609 58,972 62,308 65,888 92,074 65,500Tobacco 58 53 50 47 48 50 795 730 683 639 699Oilseeds (b) :22 22 16 16 16 14 280 297 278 233 264 223Total Oilseeds 110 145 114 109 110 525 563 566 508 603

(a) - Not f inal(13) - other than cotton, linseed and. hemp(c) - fiber

Source: Annuario di Statistica Agraria - Instituto Centrale di Statistica.

-49-

Table II

Production of Principal Fruits

(000 of auintals)

1951 1952 1953 19,h 1955 1956 (a)

Granps 79,6h7 73,658 3 80,27) 92,897 Q1,nM

Olive 21,h76 10,993 20,111 16,37) 11,096 8,)-o

Ora-nge ,99Q7 5,50 5,820 5,R Z735 6,229))

Lemons'2,982,895 i 3, 01 Ro), in i2,n

Apples 8,36 9,.2 8,9 N,1 207) 16,700

-. ~øn n n _1i I. n 1.4n I. n ~P ), UU3. 7 u,2..4 ,4Uj 14y,7739

P c-e 2 , 9 I 3 1 , 1 6ý_ 7 I , 9 3 5

Apricots 272 357 353 3h2 327

Cherries 1,214 1,327 1,274 1,051 1,hói

Plums 871 1,038 1,063 861 917

Figs 3,811 3,590 3,7i5 3,356 2,72

Walnuts 5ý3 521 462 408 580

Hazelnuts 330 225 475 221 355

Almonds 1,14o 2,050 2,288 1,797 1,127

Carobs h82 422 h81 94h 620

Wine (hl.) 50,h7h 58,581 55,000

Olive Oil 2,858 1,809 1,350

(a) Not final

Note: Areas have not been given, as in many cases a particular fruit is grownunder mixed cultivation as well as in pure cultivation.

-50-

Table III

rOduction of principal livestock -roducts(thous ands of nuntals )

1950 1951 1952 1953 1954 195 _ Averae

:Beef 3,052 2,927 3,086 3,62? 4,097 4,089 3,480Mutton å Goat 477 46c; 467 453 440 394 449Rorse Meat 225 261 269 281 301 320 276,Pork-- 2,626 2-,-11 3, 489 3, 26 69,7 2,745 89Total meat (a) 6,380 6. 164 7311 7,630 7,535 7548 70.94

Milk (cows) 52,570 54,694 54,500 56,910 61,225 ... 55,980äiilk-I(s.eep &Gats) 6,887 6,968 6, 84 6,6c,80,.;,7Total Milk 59,4t7 61,662 6 1,341 63,770 68.02 62,852

Wool 160 155 151 150 142 ;138 1,49Eggs (b) 5,133(c) 5,820(d) 5,860 6,070 5,525Butter 56 6 (c) 610(d) 619 650 591Cheese 2,500(c) 3,069(d) 3,115 .3,260 2,825Silk Cocoons 133(c) 127(d) 119 94 130Honey 82(c) 52(d) 58 58 65

(a) Omits poultry: data not available(b) Millions(c) Average of years 1949-51(d) Average of years 1952-55

Source: Meat, milk and wool -- Annuario di. Statistica AgraraOthers - Annuario dell'Agricoltura, 1956

Table IVrt a Imo o taricultural rouctgs

(in thousands of rnlintals)E x p r t I

M95_ .1952 1953 1954 1955 Averae 1951 1 1953 1954 1955 ArWheat (soft) 108 120 - - 2 46 12,837 10,708 8,199 1,182 4.,9 7,475

" (hard) 1 87 9 - 5 20 2,733 2,008 3,134 1,405 3,042 2,464" (total) 109 207 9 - 7 66 15,570 12,716 11,333 2,587 7,491 9.939

Rye - - 53 - - 11 12 21 390 1,958 1,001. 676Barley 12 - - - - 2 162 333 624 677 1,038 567Oats 17 - - - - 3 18 330 676 321 217 312Rice 17 27 16 23 14 19 - - - - - -Maize 266 338 88 829 336 371 1,754 51 2,544 772 1,821 1,388Other Cereals 83 106 16 14 46 4 3

To tal Cereal . 54 678 175 868 31 518 173 1 4 315.,5976 364 1,6051, 91' 5

Horse beans 898 12 52 618 120 340 1 53 49 1 2 21Kidney beans 17 13 18 140 37 45 170 71 133 13 22 82Chick peas 9 3 14 49 13 16 15 32 36 20 29 26Potatoes 1,322 1,156 1,246 2,060 1,966 1,550 1,089 926 1,381 1,180 978 1,111Tomatoes 393 486 567 635 758 568 6 6 17 18 18 13Cauliflower 933 917 773 1,404 1,330 1,071 - - - -Onions 312 377 302 295 530 363 - 1 34 2 4 8Hemp 259 101 137 215 82 159 - 7 7 6 25 9Flax - - - - - - 4 5 14 21 23 3cotton - - 3 2 1 1 1,889 2,025 1,524 1,625 1,391 1,691Tobacco 78 79 124 127 114 104 25 20 80 65 107 59Oilseeds 51 46 43 57 30 55 900 400 586 456 1,069 68>Grapes (table) 411 365 331 608 853 524 3 3 2 50 5 13Citras 3,436 3,499 3,300 3,892 3,588 3,543 3 3 3 2 3 3Apples 1,706 1,282 1,933 1,721 3,294 1,987 12 1 3 -3Pears 566 392 553 354 887 550 1 1 1 - - -

Peaches 309 685 961 857 1,397 842 - - - - - -

Apricots 72 160 199 109 105 129 - - 3 -

Cherries 162 196 169 112 277 183 7 3 3 4 2 4Plums 139 203 221 154 180 179 2 - - 4 - 1Total fresh

fruits 2,005 2,981 4,106 3,371 6,216 3,736 24 7 5 14 3 11

-52-1251 -1952. 1953 1954 -1955 Average 1951 1952 1953 -195 19;5 Average

Canned and driedfruits 603 488 792 603 460 589 64 100 246 489 263 232

Wine (hectoliters) 815 1,065 1,016 964 960 964 59 50 50 52 51 52Olive 01 74 97 106 115 88 96 68 123 149 158 144 128

Livestock (thousands)Cattle .10 .03 .04 .02 .01 .04 129.7 106.4 63.2 81.2 131.7 102.4Sheep l6.5 3.5 .7 .7 11.2 6.5 1.29 .06 2.6? 1.37 1.37 1.35Goats - - - - 2.5 1.9 .23 8.7 8.0 3.9Horses .03 .L4 .09 .04 .05 .05 30.0 39.5 44.2 27.9 33.6 35.0Pigs - - - - 48.7 7.0 3.8 23.4 143.9 45.4Poultry (a) -- - - - - 34.8 41.7 62.4 92.0 95.8 65.3

Livestock ProductsMeat 1.4 1.9 3.6 1.9 1.7 2.1 377.3 466.1 352.6 364.9 542.3 420.6Milk .4 .2 .6 .8 1.2 .6 1.4 21-5 15.1 8.4 11.6Butter .2 .1 .1 .2 .1 .14 186.7 87.0 95.6 64.5 108.5Cheese 153.0 192.8 170.5 170.8 196.7 176.7 115.6 145.2 231.5 260.9 196.0 189.8wool 9.7 12.4 13.7 10.3 9.8 11.2 4?8.4 648-5 835.9 694.8 633.4 658.2Egge 2.0 2.2 1.2 .9 1.1 1.5 136.2 130.0 174.8 227.3 313.5 196.4Honey - - - - - 18.5 26.1 15.2 12.3 6.9 15.8Silk Cocoons .9 .- - - - 1.5 .8 4.5 3.4 3.0 2.6

(a) thousonds of quintals

Source: Lnnuario di Statistica - Instituto Centrale di Statistica

Table V

Balance Sheets of different t;4oes of land reclrmationnd trnformdtion

_Tye ABefcore Afjter 1neaa Bpr Ate Incro,rn Bfore f Jagrea,e Before Af ter ncreaseTransformation Transforiation TrainzZorniai Transformatien

Gross marketableproduction 48,100 116,600 68,500 48,100 132,500 84,400 90,000 307,500 217,500 90,000 672,5c0 582,500

Net output 40,100 83,100 4.3,000 40,10) 101,500 61,400 60,000 238,895 178,895 68,000 524,91.2 456,912

Farm prof it 12,550 20,740 8,190 12,550 23, 188 10,638 18,484 60,913 40,311 21,000 297,507 276,507

Livestock,machinery& working capital 56,000'125,000 69,000 56,000 87,500 31,500 75,000 209,666 134,666 20,000 37,500 17,500

Li(uid, workingcapital 11,356 38,665 27,309 11L,356 46,875 35,519 30,158 70,590 40,432 -29,000 166,137 137,137

Labor re: uirements(man dzys perhectare) 19.1 41.2 21.9 19.03 50.2 31.17 26 110 84 30 128 98

Additional Investmentre uired 245,000 490,625 510,000 710,000

Source: Cassa per il Mezzogiorno. Economic An2.ly7sis of the Txtraordinrry Public Works Programfor the South, Part 1, March 15, 1955.