ABSTRACT ADJUS‘DIE’NT POSSIBILITIES 0N comm FARMS UNDER ALTERNATIVE LEVELS '01" . PUBLIC LAW “80 IMPORTS by Dale W Adams This 3% attempts to determine what production adjustments Colombian tam units are likely to make in response to various levels of Public Law 1480 Title: I imports. Agriculture is a major factor in Colombia's economy, but farm productivity is lagging well behind the rest of the economy. A general lack of rural investments helps explain this lag and also reduces the possibilities of farm adjus‘hnenta.- The. organization of Colombian farm units and the structure of agricultural markets are additional factors which, 11m adjustments. Wheat producing fares are principally diversified units because of various uncertanties , hone consumption considerations , and crop combination possibilities . Strong competition from other enterprises , and limited mounts ot'land where wheat can' be grown, make 1+. doubtml that Colombian rams could produce all of the- country's wheat needs. A termination of Title I wheat imports would not' sharply increase in- ternal wheat production, and formal or informal rationing plus additional comercdal imports would likely follow. With a large increase in Title I wheat imports, the relative prices of wheat and its production ocu- Dale W Adams petitors would probably decline at nearly the same rate, and producers would have only modest incentives to switch out or wheat production. The output of dairy and poultry products have recently expanded rapidly in Colombia. Future eocpansion will depend on the availability of adequate feed grain supplies. Many of the farm operators who presently grow corn do so only for home consumption. Commercial pro- ducers have found that sugar cane, cotton, oil. crepe, or dairy may yield higher returns than feed grains. Acute shortages of feed grains in Colombia are likely unless internal production is substantially in- creased. Anmal feed grain imports of up to 300 thousand metric tons appear possible if relative prices of feed grains are to be kept from rising sharply. A highly successml cotton development program has produced ex- portable surpluses of cotton. fiber in Colombia. It is douth that fixture cotton imports under Title I programs will be necessary because of the expansion possibilities in cotton plantings. I The production of edible oils has increased along with cotton production, but large imports of edible oil products were still nec- essary in the early 1960's'in order to maintain even the existing low pechapdta rates or consumption.» The prospects for an accelerated ex- pansion in- edible! oil- production appears ‘- slight without, (1) large. com- mitnents of capital to aid planters of'oil palms; or (2) sizable invest- ments in irrigationand drainage systems], to-‘beneiit- fans which can pro- duce annual 9121 crops. '1 cessation/of Title I edible/oil. imports would probably result in larger, commercial imports; ' while: larger Title I in- perts wouldreducrpressure for commercialimports, and'lessen'thenged ii Dale“ Adams to expand internal production. The implications of three alternative levels of Public Law #80 imports were examined in view of these possible production adjustments. Broadly speaking, a continuation of Title I. imports at the per-capita levels of recent years would yield similar results to those experienced in past programs. A termination of Title I imports would clearly aggravate some of Colombia's most critical problems; The third al- ternative examined showed that a substantial increase in Title I imports may be possible, .but positive results will not automatically follow - within Colombia's dmlopuent plans.' Unfaimrable farm income effects could result, private' agricultural investments reduced, and damage! done to- Colombia's ability, in' the long-run, to. produce its own food needs. Additional public investments in agriculture plus expanded agricultural credit facilities could substantially offset these detrimental effects. ADJUS‘DIENT POSSIBIIJZTIES 0N COLOMBIAH rams UNDER. ALTERNATIVE LEVELS OF PUBLIC LAW 1480 IMPORTS DALE U ADAMS ATHESIS ._ Suhnitted to Michigan State University in partial fulfillment of .the requirements for the degree at DOCTOROFPHILOSOPEI Department of Agricultural Economics 1961! AI‘JLQ'LJJT CSSIBILI’E': S 0.1 C.--.Z.EL‘.II FARMS UIZZ2.. .‘LTERnl'II'E' LEVLIS CE‘ PUBLIC LAW 3483 IEIPCRTS by 3m w was a mam Submitted to Michigan State University in partial fulfillment of the requirements for the degree of DOCTOR OF PHILOSOPHY partne. .t of Agricultural Eccncgics Approved [76am Mfr 1963+ 6 magic; 97w ACKHOl'mG‘fEN'I'S ihe research for this thesis was carried. out during the period November 19621» December 1963. while the author was located at the Facultad de Ammonia Universidad Nacional de Colombia in Medellin. Host of the financial support for this study came from a fellowship provided by International Programs at Michigan State University. Some additional research funds were also made available through a Public Lat: #80, local currency contract between, the Foreign Agricultural Service of the 0.3. Department of Agriculture and ‘niohigan State University a number of individuals contributed directly to this study. Dr. 3. 6. Wheeler, the project leader in Colombia for Michigan State, added substantially to both the data std analysis fault}. in this Work. Arturo Tobén, sergic Cérdenas, G.A. Guerra 13., Luis Guardia Mu Simeone Mancini. and‘othei- members of the Facultad Staff also made important ‘ ’ contributions. I . { Field work for the analysis was. carried out by the following senior students of the Facultad: Ivan. Agudelo, Eduardo Arango de la Cruz, Klaus Bethke, William Cane, Abelardo Chacén, Antonio Herrén. Jorge Lopera, Alvaro Mesa. Eduardo Montero. Miguel Plate, Hector ’sapdlveda. and sector Tomayoe Special recognition is due Dr. Lawrence W. Witt who acted as major professor and thesis adviser. It was through his suggestion that the author became interested in the present field of study. Errors of fact and logic are the sole responsibility] of the authors TABLE OF CONTENTS WRAQOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO0.000000000000000.0.0000... 'ACKNOWLEDGMENTSOC0.000.000.00.000...00.000.000.00...000.00.00.00 LIST OF TABLES.....CC...OOOOOOOOOOOOOOOOO0.000000000.00.00.00... LIST OF nmeesococoooooooeoooooeoeeeoeeeeoeeoeeee0000?000000 Chapter I. mmODUCTIONOOOOOCOOOOOOOOOOOCOOCOOOOOOOOOOOOOOO00...... settingOOCOOOOOOOOCOOOOOOOOOOOOCOOOOO00......00.0.0.0... United States Agricultural Surplus Disposal. e e e e'e e e e e e Public LaW’48O in COIOmbiaeeeeeeeeeeeeeeeeeeeeeeeeeeee Assumptions andIMethodologyt.eee.e.eaoe.............ee Selection Of Case StadiGSeeeeeeeeeeeeeeeeeeeeeeeeeee Alternative LOVBlS of Title I ImportSeeeeeeeeeeeeeeo Alternative Price Assumptionseeeeeeeeeeeeeeeeeeeeeee Areas Sampledeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee General org8nizat10neeeeeeeeeeeeeeeeeeeebeeeeeeeeeeeee II. THE ECONOMIC STRUCTURE OF COLOMBIA WITH PARTICULAR WWIS ON MRICULTUREC.CC.O.CCOOOOOOCOOOOOCOOOOOOOOO Background on the Economyeeeeeeeeeeeeeeeeeeeeeeeeeeeee ‘ Steps in.Developmenteeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee Recent Trends in.Sectors' GrOWtheeeeeeeeeeeeeeeeeeee Recent Trends in Exports and Imports......eee.e.eeee COIthian.InYBSthnt'PattOrDSeeeeeeeeeeeeeeeeeeeeeee e/Th. Agricultural SOOtOPeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee . Agricu1tur81.POIicyeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee Capital and crediteeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee Agricultural Land RBSOQrCOSeeeeeeeeeeeeeeeeeeeeeeeee Land IDYDStmOntSeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee 812. of Land HOldiHESeeeeeeeeeeeeeeeeeeeeeeeeeeeee Page gfias t; t:~OCh(h \nkdtOFJ *4 Chapter Tenureeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee Land Tenure POliCYeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee Agriculture's Human ResourCOSeeeeeeeeeeeeeeeeeeeeeee Rural Healtheoeeeeeooeeeeeeeeoeeeeeeeoeeeeeeeee... Primary Education in Rural maSeeeeeeeeeeeeeeeeee Higher Agricultural Educationeeeeeeeeeeeeeeeeeeeee Eatension Educationeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee smmeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee ; III. PRODUCTION ADJUSTMENT POSSIBILITIES FOR WHEAT AND . COWETING ENTERPRISES...0000......OOOOOOOOCOOOOOOOOOCC Production and Import TrendSeeeeeeeeeeeeeeeeeeeeeeeeee M03 Harvested and YieldSeeeeeeeeeeeeeeeeeeeeeeeeeeeee Organizations Dealing with Wheat Production...e....... Price Relationships and Areas of Production........... “Characteristics Of Producing unitSeeeeeeeeeeeeeeeeeeee A Size aid TypOSeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee use Of Improved Seed and Fertilizereeeeeeeeeeeeeeeee Farm Tenureeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee ROPI‘OBGRutIVO Producing UDitSeeeeeeeeeeeeeeeeeeeeeeee . Adjustment Possibilities on Farm Seeeeeeeeeeeeeeeeee Adjustment Possibilities on Farm Meeeeeeeeeeeeeeeeee Benchmark Planeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee Problems and POSSibmtIBSeeeeeeeeeeeeeeeeeeeeeeee Plan IIeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee Plan IIIeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee Plan IVeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee Plan veeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee Evaluation or Alternative leSeeeeeeeeeeeeeeeeeee Adjustment Possibilities on Farm Leeeeeeeeeeeeeeeeee Benchmark Planeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee Problems and POSSibilitieseeeeeeeeeeeeeeeeee‘eeeeee Plan IIeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee Plan IIIeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee Plan IVeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee‘ee Plan Veeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee P1811 VIOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO... Evaluation of Alternative leeeeeeeeeeeeeeeeeeee Adjustment Possibilities on Other FWeeeeeeeeeeeee Overall Prospecueeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee Page Chapter Iv. Fm emu PRODUCTIOIIOCOOCO...0.0.0....OOOCO0.00.0000... Trends in.PrOdUCtioneeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee U588 Of Food GrainSeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee DovelOpment ProgramSeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee “638 Of PrOdUCtiOneeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee The Valle del caucaeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee The North COESt Regioneeeeeeeeeeeeeeeeeeeeseeeeeeeee The LlanOSeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee t/Feed Grain Producing Units.......e.................... Corn for Home Consmnptiomeeee...eee................ Farm X—a Subsistence Corn Producer..............e Commercial Feed Grain Production.................... FarmUI-—a Commercial corn»PrOducereeeeeeeeeeeeeeee Other 60311118130181 Corn Producers....e........eeeaae‘ Aggregate PrOSPOCtSeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee v. newsman POSSIBILITIES IN LIVESTOCK AND POULTRY PRODUCTIONeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeooeeeoeeeeoo Dairy and L1V95t00k Productions........e...e...eeeeeee ' Cattle InvantOIYeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee cattlfi Slaughtereeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeo DM'B Relation to 3601' PrOduCtiOneeeeeeeeeeeeeeeee KUSO 0f Dairy PrOdUCtSeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee 1/ Developing Milk Markets and Producing Regions....... :Milk Producing unitSeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee Diversified Units with Small.Dairy'Enterprises...... Farm Feeeeeeeeeeeeeeeeeeoeeeeeeeeeeeeeeeeeeeeeeeee Medina-sized Conunercial DMOSeeeeeeeeeeeeeeeeeeeee FarmuMSO0.0.0.000...0.00......0.0.0.0....00000000. Farm Teeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee Large Commercial DmeSeeeeeeeeeeeeeeeeeeeeeeeeeeee Palm Geeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee ix Page 103 103 10# 107 109 109 115 118 119 120 130 132 132 133 i3? - 141 1141+ 144 147 150 150 156 163 163 Chapter Milk Production on catth Wheseeeeeeeeeeeeeeeeeee Farm Reeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee Poultry Productioneseaeee........e......ea.....e...eee Poultry Nmmbers and Production....e..a.......e...eee Farms With PoultUeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee Fm P300...00......I.OOOOOOOOOOOOOOOOOOOCOOOOO... “WES“ mSPOOtSeeeeeeeeeeeeeeee‘eeeeeoe‘Beeeeeeeeeee VI. comm AND 30131.3 011 PRODUCTION IN COLOMBIA............ 3361‘31‘011111 on Cotton Pmductiomeeeeeoeeause..."s... Production TrondSeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee The Market for Fibereeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee Areas Of catton.PrOdQCtionaeeeeeeeeeeeeeeeeeeeeeeeee y towns in COtton PrOduOtioneeeeeeeeeeeeeeeeeeeee Cotton Producing unitSeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee A 00"“ Cotton Producereeeeaeeeeeaee....e.......... Benchmark Planeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee Plan neeoeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee Plan IIIeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee Plan Neeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee P1“ VOCCOOCOOOOOOOOCOOOOCCCOOOOCOOOO0.0.0.0000... Plan neeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee Comparative SWeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee ‘ Adjustnent Possibilities on Other Farms............. 7 Aggregate Cotton PrOSPOCtSeeeeeeeeeeeeeeeeeeeeeeeeeeee Supplies and Consumption of Edible Oils............... Production 0: Individual Oil cropseeeeeeeeeeeeeeeeee sesamfleeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee SOYbeanSeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee Peanuts..e....eeeeeeeeea...a.......e.....e......ae- coconutseeeeeeeeeeeeeeeeepeeeeeeeeeeeeeeeeeeeeeeee “1'10“ Pmeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee Nativn 011.Pilleeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee “81‘0““ PTOIPOOIJ for Edible OflIeeeeeeeeeeeeeeeeeee x Page 165 165 167 167 170 17?- 179 , 182 183 183 188 191 193 196 201 202 202 202 202 203 203 207 209 209 214 215 216 217 218 218 221 221 Chapter Page VII. SUI'MARY Am CONCWSIOIBOOOOOOOOOOOOOOOOOOOOOOOOOOO0.00.. 225 Adjustment opportQNitIGSeeeeeeeeeeeeeeeeeeeeeeeeeeeeee 225 Future Development NeedSeeeeeeeeeeeeeeeeeeeeeeeeeeeeee 232 Effects of Alternative Lovels of Title I Imports...... 233 “val IOOOOOOOOOOOOOOO0.0.0.0.000...OOOOOOOOOOOOOOOO 233 hvel III...0..OOOOOOOOOOOOOOOOOOOO0.000000000000000 2% Level IIIeeeeeoeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee 235 Table I E l E 11-5 flat Ha. LISTOFTABLES Farm product prices in Colombia, 1955-56 and 1961-62, and price relatives projected for 1967-68 under llama“ 10V618 Of 1‘1th I importSeeeeeeeeeeeeeeeeeee Prices or inputs for farm production in Colombia. 1953 and 1961.62, and price relatives projected for 1967-68 “mar flternative lama of Title I mportSeeeeeeeeeeeee Trends in Colombia's real gross product, by sectors. lgfiaOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO00.00.... Growth in output of selected industrial products, 6010311)“ 1952-62eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee Agriculturally related production in Colombia' s internal gross product, 1958eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee of imports, with percentages of each related to ag- AMMOOOOOCCCCOCOO...00.0.00...OOOOOOOOOOOOOOOOOOOOC‘ Percentage distribution of gross new investments in fixed CCpim. by sector. 1959 uni ”0390M 1961-ll'eeeeeeeeelee Distribution of public external loan disbursements to Colombia by purpose 1945 to June 30, l963............... Relative importance of principal crops in Colombia, in terms of area planted and value of production, 1962..... Comparison of producer prices and import prices for 361.00% farm products, 1962eeeeeeeeeeeeeeeeeeeeeeeeeeee Comparative distribution of new loans made and of the “033 national PrOduCt w 800“”. 1955-59eeeeeeeeeeeeee Total land use in Colombia. 1957, and use of land in farms '- in 16 Departamentos, 196°00e00000000000eeeeeeeeeeeeeeeoe Numberoffarmsanilandinfarmsbysizeofholding, with . percentage distributions. in the Departamentos of Caldas. Cundinamarca and Valle del Cauca in 1959-60 and in 16 “W3“. 0: Colombia. lgfleeeeeeeeeeeeeeeeeeeeeeeee Page 10 21 23. ‘ 24 Trends in Colombia's total value of eacports and total value 25 27 28 30 33 35 37 Table 11-13 II-l‘+ II-lS IIelé III-9 III-10 III-ll Distribition according to tenure of land. in farms in 16 Departamentos, 1960eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee Distribution of Colombia's population by size of commity, July 1962eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee Distribution of urban and rural schools according to the highest year OffBI‘Od. 1960eeeeeeeeeeeeeeeeeeeeeeeeeeeee Registrations and completions for the 5 years of primary SChOOl hy urban and rurCI students, 1960eeeeeeeeeeeeeee Distlé'zibltion of Colombian university students by majors, l9 OOOOOOOOOOOOOOOOOOOOOOO0..0.0000000000000COOOOCOOOO Total wheat production and area harvested in Colombia as reported from We different sources. l950-62........... Principal sources of wheat and flour supply in Colombia, . 1950-62...OOOOOOOOOCOOOOOOOOO0.0...OOOOOOOOOOOOCOOOOOOO Barley area, production, yield and use of improved seeds, 1950-62e00e0000000eeoeeoeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee Average prices received by Colombian producers for wheat, barley, . potatoes, 8“ corn, 1952-62eeeeeeeeeee eeeeeeeee Wheat production in primary producing areas of Colombia, by semsters, 1955-62eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee Area of wheat on farms in Curdinsmarca, by size of farm With wheat, and by 5123 Of pmmgeee‘eeeeeeeeeeeeeeeee Percentage distribution of crop and livestock enterprise units on 248 preliminary survey farms in Narifio and W68. by 8129 Of fameeeeeeeeeee'eeeeeeeeeeeeeee' Classification of 199 commercial farms in preliminary survey, by type and size, Narifio and Cundinamarca...... Land use, crop yields, and livestock program under four . alternative plans for Farm Meeeeeeeeeeeeeeeeeeeeeeeeeee Comparative financial summary for five alternative plans for Farm M. at 1961-62 pri008eeeeeeeeeeeeeeeeeeee Estimated net earnings from five plans for Farm M, calculated under alternative price situations related to 10W]! 01' PeLe 1‘80 Pl‘ogramSeeeeeeeeeeeeeeeeeeeeeeeee.E Page 52 63 66 71+ 83 39 Table III-12 111.13 131-]. N4 In} IVJI» :v-s IVJ-6 IVs? IV-8 Vol V—Z V63 V-J-b Land use, crOp yields, and livestock program under six alternative plans for Fam Leeeeeeeeeeeeeeeeeeeeeeeeeee Comparative financial sumary for six alternative plans for Farm L. Ct 1961-62 priceseeeeeeeeeeeeeeeeeeeeeeeeee Estimated net earnings from six plans for Farm L, calculated under alternative price situations related to IOVOIS 0: PeLe “80 pmgrmeeeeeeeeeeeeeeeeeeeeeeeee Al‘ea, yield, and production of corn in Colombia, 195 OOOCCOOOOOOOOOOO...OOOOOOOOOOOOOOOOOOOOOOOOOOOO‘ Area, yield, and production of corn by departamentos, 19 COO...00....0.0000000000000000000000000000000000000 Area of corn in Valle del Cauca, Caldas, and , Omdinamarca 1959-60, by size of farms with corn,‘ and by 812. Of plantingsuuu...uouu..uu..u..... Percentage distribution of crop and livestock enter- prise units on 108 preliminary survey farms in the El Corrito area of Valle del Cauca, by size of farm... Classification of 170 commercial farms in preliminary survey in two areas of Valle del Cauca, by type ‘nd 812.00.00.00000000000000000000000COOOOO...000...... Land use, crop yields, and livestock program under six alternative plans for Farm reeeeeeeeeeeeeeeeeeeeeee Comparative financial summary. for six alternative plans for F“ X. at 196L62 PfiCOSeeeeeeeeeeeeeeeeeeee Estimated net earnings from six plans for Farm I, calculated under alternative price situations related to levels or yeLe “80 progrmeeeeeeeeeeeeeeeeo Imports of breeding cattle from the United States and 0m}? 3M3. 1945-62eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee Total cattle population by Departamentos, 1959-1960,- according to We sources or “heeeeeeeeee eeee e eeeeeeee Number of cattle slaughtered and officially reported, by 8&2. 1Meeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee Classification of preliminary survey farms in five sample areas acceding to size of milking herd......... xiv Page 93 96 99 105 110 117 122 125 126 128 134 136 138 145 Table v.5 v.6 V67 V—8 V-9 Vi-lO V-ll V642 V-13 V-lhv V-15 V-16 V-l? E i Page Classification of 163 commercial farms in the Municipio Of Fredonia, by type 21d SlZOeeeeeeeeeeeeeeeeeeeeeeeee. lz'ra Land use, crop yields, and livestock program under four . alternative plans for Fam MSeeeeeeeeeeeeeeeeeeeeeeeeee 152 Comparative financial summary for four alternative plans for Farm M3. at 1961-62 prices....................153 Estimated net earnings from four plans for Farm MS,‘ calculated under alternative price situations related to levels 0: Per... “'80 programs................. 155 Annual financial summary for two plans’in a “normal" year if“? I. “8135in1! period, Farm TC................ 159 Changes in the dairy enterprise during the transition period on Farm TCeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee 160 Comparison of annual cash transactions , excluding loans and repayments , for two plans during a seven-year transition period on Farm TCeeeeeeeeeeeeeeeeeeeeeeeeeee 161 Net cash income under two plans, before and after adjustment for credit transactions, Farm TC............ 162 Changes ’in retail prices of popular food in the 3030“ market, June 1955-56 to June 1962-63eeeeeeeeeeee 168 Classification of preliminary survey farms in five sample areas according to number of chickens on hand...........l7l Lani use, crop yields, and livestock program under four alternative plans for Farm PSeeeeeeeeeeeeeeeeeeeeeeeeee 175 Comparative financial summary for four alternative plans for Farm PS. at 1961-62 prices................... 176 Estimated net earnings for four plans for Farm PS, calculated under alternative price situations related to level Of Fe II. “80 programs........uu........u... 178 trends in area, yield, and production of seed cotton, . lgfln-lgéaeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee 185 Production and mill consumption of cotton in Colombia, 19$.63eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee 187 Production of seed cotton by zones and areas, 1959-63.... 189 Table VII-1+ VI-S VI-6 VIE-8 VIII-10 VII-12 VIZ-13 VIII-ll} Area Of COttOfl by 201188 and areas, 1959-63eeeeeeeeeeeeeee Number of producers and area of cotton, by size of planting, With percentage distributions, 19610eeeeeeeee Number and percentage distribution of cotton producers and land in cotton, by region and by class of tenure for m catun’ 1961.00.00.00000000000.......0.0...... Percentage distribution of crop and livestock enterprise units on 127 preliminary survey farms in the Cerete area Of 061110138. by 512. Of farm...uu...u..........o Classification of 82 commercial farms in preliminary survey in the Cerete’ area of Cordoba, by type and size.o............................ooo.oo..............o Land use, crop yields, and livestock program under . 813C 111391118th plans for Farm meeeeeeeeeeeeeeeeeeeee Comparative financial smmnary for six alternative plans for Farm M. at 1961-62 prlCOSeeeeeeeeeeeeeeeeeee Estimated net earnings from six plans for Farm M. calculated under alternative price situations related to lOVOlB Of PeLe “’80 pregrams........u'......o. Estimated production of vegetable oils from primary materials grown in COIMbiQ. 1952.62eeeeeeeeeeeeeeeeeee Trends in supplies of vegetable oils from three principal SONS. 1952-62eeeeeeeeeeeeeeeeeeeeeeeeeeeee Production of vegetable oils from crops grown in Colombia, estimated for 1961-62 and projected for 1967-QOOOOOOOOOOOOOOOOOO0.0.0....OOOOOOOOOOOOOOOOOOOOO Page 190 194 195 197 198 .204 205 206 213 223 d". LIST OF FIGURES Figure ' i Page 11-1 fipe-ef-Farming Associations in Colombia................. 38 V-1 Colombia: 'Zonas Lecheras Int: Movimiento a consmno....... 143 CHAPTER I INTRODUCTION This study attempts to determine some of the impacts of future imports of food, and fiber surpluses upon the development of the Colom- bian economy. The perspective is the future, and the focus is primar- ily upon the agricultural, sector. The analysis is concentrated on de- termining the adjustments uhieh Colombian farm units are likely to make in response to alternative levels of imports under Title I of the 11.8. 195% Agrionltursl Trade emlepuent and Assistance Act (PI. use). Setting ' 'me 20th century has seen a umber of countries switch from a pure biological orientation on food, clothing and shelter toward a psy- chological orientation of quality, quantity, social equality and de- . ' velopnent. The tremendous increases in production of food and fiber ex- 'periencedtytheUnitedStates isastriking exampleofthis changein orientation. Unfortunately, new of the values and institutions of the United States, and in fact of the world, have net been well adapted for integrating this additional food and fiber into an overall developnentel . . framework} Unused supplies of wheat, feed. pains, cotton, coffee and k ‘ IBecause it took man thousands of years to develop marketing systems based on principles of scarcity, it should not be expected that the ad- Jusunents to surplus conditions would be either rapid or easy. I OI' other agricultural goods in various countries of the world attest to this lack of adjustment. with the high priority that mankind is presently placing on economic and social development it becomes imperative that better uses hensdeetthesegeedsinenerging countrieswherereedissmll United States Agricultural ' Surplus Disposal” neonacunentefPLllvBOinl95fivas'onlyoneof amberof steps taken hy the United stutes to adjust to its agricultural surplus. Previous'te this, these surpluses hadbeenused to help carryoutthree wars, earl to aid in pest-war adjusbnents in affected countries. Lend- Lease, um programs, Mutual seem-m Act (PL 165 and PL 665) ship- ments and Point IV activities were some of the formal external pro- grams.2 Internal and external programs for "dumping" of surplus com- modities and expansion of industrial uses also received emphasis. As Cochrane points out, enactsentofPLhSOwas amarriage of domestic problems with a weak emphasis on overseas- needs.3 Although the early’emphasis was on short term relief from internal surplus pressures, the continuationef these pressures has caused the program to be oriented toward long run considerations. Likewise, research _v_ 2See Elmer L. Menzie _e_‘l;. _a_l_., Poligy for United States Ag- ricultural Excert Surplus Disnosal, Technical Bulletin 150, College of Agriculture, University of Arizona, Tucson, 1962, especially pp. 22-5”, for further discussion of the United States' surplus disposal programs. , - 3villen1 w. Cochrans, “Public Law use and Related Problems," : mg; mg}; Aggy roguep; and Social Science (Septanber. 1969). dealing with P1. 1‘80 has gone through the same change in emphasis. Early research tended to deal with PI. “80's effects on 0.8. commercial sales, later on competing countries' sales, and more recently on re- lationships between PI. zl80 imports am nutritional levels, foreign ex- change problms, interml investment, and foreign aid in receiving ‘ countries. w June 30, 1963, almost 1.5, billion dollars worth of commitments had been made under the four different Titles of PL tI80. ‘ Over 100 countries had received commodity shipmhtsypredominantly of wheat and flour, 'fats and oils, rice, feed grains, 'and cotton. ‘ Title 1 sales fcr 166.1 currency accounted for almost mum. of the total value omitted.“ ‘flleuseofsurpluscommoditiesunderPLfl-BOhasprovedtobea more complex developoent tool than the-use of-grants or loans of hard currencies. The impacts of these-goods on the receiving countries vary widely depending on timing, internal production, consumption patterns, and external trading relationships. Some generalities can be stated with regard to imports of these surplus goods, but it seems that useful guidelines for making better future decisions can only be developed on the basis of oountry-by-country. studies. mese studies can then be , used in tailoring programs to meet the needsof individual countries.“ \ PublicLawHSOincolombda up until mid-1963 Colombia had received, or was scheduled to “11.8. house of Representatives, Eiggh'tfiepth Semiannual Remirt on Activities Carried on grade; Public Law-7482, 83rd Congress, House Dom-Inent Ne. w, 88th Congress, lst Session (Washington: Governnent mm “the 1963’s P0 620 , " .7 - . I l- 1|. receive, almost 112 million dollars worth of products under various TitlesefPLlaBO.’ Overhalfef this valuewasincludedinTitleI agreements (sales for local currency), ' ever 1&0 percent shipped under Title III (food donations), and only six percent committed under Title IV (long term leans).6 Wheat and flour, edible oil products, feed grains, due-y. products, am cotton have—all been important items in these shipments. A total of five .‘fltle I agreements had- been signed with Colombia prior to 1962.. a clue-Iv-egreeuent-m- added-to these inset-eh of 1963. Results of the activitierunder‘l‘itle I in Colombia have .1. ready been examined in three closely related report»? Gearing con- cluded from his review of past PL-ll80programs in Colombia that four major impacts had resulted. n... were: (1) that semen-shifting of emphasis from wheat to barley production had occurred, (2) that'locel . ethane: leans had tended to circmsvent some rigiditiesinherent in. 5:54.. pp. 88. 107. 109. 115. 6About 1.3 million dollars worth of commodities were also sent to Colombia under Title III barter agreements for platinum. ibis figure is included in the Title III donation figure above. 7!. J. Gearing, United States Sm lus Dimsal in Colombia, 0n.- published Ph.D. Thesis, Department of Agricultural Economics, Michigan State University (East Lansing, 1961). ’1‘. ‘J. Gearing and L. W. Witt, United States Agricultural Smluses . - 1.3 Colombia .. A Review of mzblic Lawnfiho, Agricultural Eacperiment . Station Technical Bulletin 9, Michigan State University (East Lansing, 1963). L. W. Witt at R. 0. Wheeler _e_t ale, W Mans in Celembi a - 1955-62, Michigan State University, Department of Agricultural Economics and Facultad Nacional de Agrenemia Depart— amento de Economia y Ciencias Sociales (Medellin, Colombia. October, 1962). Oiimeegraphed. ) 5 traditional credit facilities. (3) that there had been some improvement of the caloric intake of certain groups, and (4) that PL 1480 imports had helped to ease some very serious foreign exchange problems which were aggravated 1y falling coffee prices. Assumptions am Hethodelegy Imports of, PL #80 1.... direct ind indirect impacts throughout the econosw, but the implications for agriculture are especially sig- nificant. Under ideal coalitions, donations of food-through Title 111 would have little effect-en actual or potential prices of farm pro- . ducts in Colombia. en-the other hand, imports under Title. I enter. in- to direct competition with locally produced commoditiesea The effects of this 'n'e similar touterenmawagricultnral producers, arrl a subsidy to consmers‘ef'affected products. The extent of the tax largely depenis en the producers' ability to. switch production toward omedities whose price relationships are affected relatively less, and"alsc upon changes in producers' cost structures.- In order to determine "adjushuent possibilities, detailed case studied were made of some 60 imividual farm units located in several major agricultural areas or Colombia. "be specific objective was to deterrine the probable responses of thee. and similar units, ever the next 5 term years, to changes in relative farm prices or production conditions resulting from possible. variations in Title I "shipments. 8lit appears that direct impacts upon the agricultural sector are almost identical for Titles I and IV programs. Although only Title I will be discussed here, the analysis is equally applicable to future nu. IV imports. .- .‘I e. . NI- 3 is. t‘. " .4 Nit u-\ \t: h...‘ a.“ Selection of Case Studies During December 1962, over 1000 short preliminary schedules were completed for fans units. Approximately 200 schedules were taken in each of five different areas. These preliminary schedules were aimed at determining typical enterprise combinations . sis. and tenure pat- terns, an! resources available to each operator. - “me schedules were later classified according to--tenure, size, and type-of-faming. Some 10 to l5 units were selected which-appeared to-rbe- representative of important W of faintmsnagementunits, in cache!" the five areas. These case-stew farmswerrthen revisited several times for additional idermation which included tenure-arrangements, crop - and livestock production, an! income-am! expense-data.9 Information relating to ' labor force, investments, capital and credit was also gathered. Alternative plans 'for each of these cases were later budgeted using prices for 1961-362 and price. relatives projected for. 1967-68. The case-stab fans were again revisited, and the alternative plans discussed with the operators. ' I . h ternative Levels of tle ‘ rte . InthisstudyitisassmaedthatCelombiawillfindtheUnited Statesreedv to maintain or increase the quantity of comedities .hip-~ pod under Title I agreements. Three general levels of future Title I ( 9mecasestudymethodisusedinthisanalysisasameansof identifying relevant variables, of developing hypotheses about im- portant relationships ,i and in association with aggregate statistical . information of inferring probable actions by , groups of agricultural producers. For a more extended discussion of the case study method see, 3. G. Wheeler and G. A. Guerra 3., 'Administracldn Rural En La. Reforms Agraria y El Desarrello Econciaico,‘ Ravista Fa tad Nacio mm. Vol. 1111:. so. 59 (Medellin, “W 3 . p. .. -, . 10 imports of wheat, edible oils, and feed grains are assumed. They are as follows: Level I - Both Title I and commercial imports of wheat and edible oils will continue at per-capita averages of the 1955—62 period. Title I imports of feed grains will continue at the 1961 level of 55 thousand metric tons per ye‘re . Level II ‘ .. All Title I imports will be discontinued. . . . Market prices will be allowed to rise, but the rises will be tempered by additional efforts to provide educational and technical assistance at the farm level, and possibly by the use of direct controls in some cases. Level III - Imports of wheat and edible oils under Title . . . . - I will be double the 1955-62 per-capita rates. Feed grains will be imported at a rate of 300 thousand metric tons per year. in overall assumption regarding these import levels and assoc- iated adjustments in market prices is that changes in shipments of Title I ccmcdities will not be largely offset by alternative pro; grams of international origin. Alternative mos Asmtions ChangesinthelevelofTitleIimportswillhave bothdircct and indirect impacts upon the absolute and relative prices of ag- ricultural prodncts. it the same time other changes are likely to take place, apart‘from aw Title I program, which will. also alter price relationships. To provide abasis for the. case. analyses, 1"’cotton was imported under each of the first four fitle I agreements. is will be shown in Chapter VI, recent increases in in- ternal production make it unlikely that future imports of cotton under PL 1880 programs will be necessary. Small quantities of dairy pro- ducts and tobacco have also been imported under Title I or Title IV agreements, butbecauseoftheirsmallsisetheywillnctbeincluded inthisanalysis. .5— “ ‘ ~‘ 8 specific assumptions about national prices of farm products and inputs in the 1967-68 period were developed for each of the alternative lev- els of Title I shipments. These asstmptions are presented in Table I4 as price-relatives with a.l961-62 base. is can be noted they exclude any allowance for an upward movement of prices resulting from senerel inflatiomu Similar assumptions with respect to prices of farm input items are summarized in Table 1.2. Under Level I imports of 'PL #80 commodities, there‘would be some upward pressure on the price of corn, oil crops, poultry, eggs, mixed . feeds, and various other‘fam products and'inputs. The prices of potatoes, coffee, beef, and fertilizers would probable fall. Additional pressurewould be placed on prices under Level II where no PL1I80 - commodities were imported. Replacement within consumer budgets would keep prices for potatoes, platanos, and milk relatively constant under this level. Baler Level III the supply. of relatively cheaper feed grains would increase the expenditures on animal products, and prices of these items would be under relatively little downward- pressure. ’ These price assumptions represent werldng hypotheses—not final conclusions—but they were chosen after a considered [view of the forces likely to affect the final outcome. Prices received by individual fanners can, of course, vary widely from national averages depending on distance from markets, quality, and marketing institutions available. Therefore, the prices which were applied in budgeting for different fans were. occasionally adjusted to reflect local conditions. 1'10ver the past few years Colombia has‘experienced an average amual rats of inflation of roughly 10 to 12 percent. Some warping of the agricultural price structure m occur through this process, but thecverelleffectscnthisenalysiswouldbesmall. Table I-l.llern.product prices in Colombia, 1955-56 and 1961-62, and price relatives projected for 1967-68 under alternative levels of Title I imports Prices of Price relatives projected Average prices 1961-62 for 1967-68 under alternative Iroduct .relative levels of Title I importsfi/ 1955-56 1961-62 to 1955-56 Level 1 Level 11 Level 111 (pesos per metric (percent) (1961-62 price a 100) . , “°“’ . e wheat 66$ . 839 126 100 120 ‘ so serlcy 423' . 716 169 - 100 ‘ 115 3: Corn . 325 635 19s ’ 110 120 105 seen. '1.215 2,260 186 105 105 105 rotatoec 262 426 162 95 100 95 ruddy “_ rice 680 907 189 105 115 95 Cotton . . iuc1.eeed 670 1.633 211 105 110 105 see... 760 .1.s7s 247 11c - 135 105 Soybeans n.e. 887 n.a. . ‘ 110 135 105 Sugar cane 12 *- 33 . 275 100 100 100 Coffee 2,871 ' 3,645 120* 9c , 90 9o Platenos 187 ’ 321 172' 100 100 100' Tues , 196 355 181 . 105 ' I 105 ~ 105 ice: 3.340 5.340 - 159 95 9s 9: Poultry sn.e. 7,600 c... 105 120 9a Kilt ‘ 430 no 179 100 100 ' 100 . (pesos each) . p . . . 23;. 0.21 o.to 190 105 120 96 e/‘Uith no allowence for any general inflation. 3003628: various worksheets and unpublished data furnished by ' the lance de la Republics, INA, 10!, and 18A. Departalentc lecicnal de letsdistice: lcletinfluensual y Anuaric General de lstedistice, various issues. 10 Teble 1.2, Prices of inputs for farm production in Colombia, 1953 and 1961-62, and price relatives projected for 1967-68 under alternative levels of Title I imports Average prices Prices of Price relatives projected Itel Unit 1961-62 for 1967-68 undcr alterna- 1953 1961-62 relative tive levels of Title I to 1953 imports :1 Level 1 Level 11 Level 111 . . (pesos): . , (percentr (1961-62 price : 100) lired labor ' ' ' -hi11 areas day 3 .00‘ 6 .00 200 ‘ 105 105 . 105 -va1 lay " . " 3 .25 6 .95 214 105 105 “105 «best let .ton 700' 890 127 100 120 80 -bar1ay " 500 850 170' 100 115 85 -corn " 380 535 141 110 120 105 -beans . " 1,000 2,265 227 105 105 105 -potatoes " 350 381 109 95 100 90 -rica " 600 946 158 . 105 115 95 -cotton " 200 440 220 -‘ 105 110 105 -eesane " 700 2,081 297 110 135 105 -eoybeaus " n .a . 920 ‘ n.a . 110 135 105 -1agunes " 800 n .a . n .a . 105 105 105 . Partilisers" ' 395 953 241. 95 100 95 Chemicals " 2,540 4, 712 185 - 100 100 100 Sacks each 1 .21 2 .33 193 100 100 100 Mixed feed 1h! . 216 635 294 110 120 105 Salt " ' n .a . 116 n .e . 100 100 100 Gasoline gal . 0 .60 0 .93 155 100 100 100 Lub . oil " 2 .50 4 .98 199 100 100 100 Int .parcent 1hr 12 86 100 100 100 Pullet chicks each n.a. 3.90 n.a. 110 120 105 Iroi 1ar chicks " n.a. 2 .00 n.a. 110 120 105 Tractor of - 50.60 h e’ e '1“ disc plow and disc barrow n .a. 38,000 ~ n.a. 100 100 100 5/ With no allowance for any general inflation. m: Various worksheets and unpublished data furnished by the , lance de la icpdblice, m, 102, IPA, machinery dealers, and other vendors. mas Sampled (Five localities were selected that represented production of major crops which might be affected by Title I imports. Two of these areas were in the high mountain regions where cereals, dairy, potatoes, an! some corn are typically grown. Another area was at medium altitude and included intensive coffee production in a rough mountainous area. The last two areas were both in flat fertile valleys where corn, oil crops, cotton, rice, and livestock are common. Specifically, the areaswereasfollcwss, 1. three municipios including the towns of Madrid and Subachcque in the pggartenento of Clmdinamarca were sampled boom. of the largo number of farm units fourxl there with wheat, barley, potatoes, corn and livestock.12~ This area, like mob of the Sabana, includes large mechanized dairy and cereal pro- ducers, and also a number of subsistence farms. 2. The two Hunicipios'of Ipiales and Pupiales in the 2.922129- amegto of Narido were also sampled for the cool-climate crops ‘ grownthere. Littleofthelamisfullymechanizedandsmall gi_nif_____undio dominate the area. 3. file Municipio of Fredcnia in the Departments of Antioguig was selected because of the large number of coffee producers found there. Platenos, bananas, cocoa, ani dairy are also sig- nificant items of production. Small, owner-operated farm units - 1'21 municipio roughly corresponds to a county, axrl a depart- amento to a state , are typical in the area. 4. Nine munieipios in the heart of the Departmento del Valle entered the study because of the cotton, soybeans, corn, and sugar cane grown. Much of-the area is in mechanized pro- A duction, and agriculture is generally further developed there than in other parts of the country. , 5. Partof theuunioipio of CeretsintheSimiValleyof the nto or condo was selected because of the farm units ‘ . located there with cotton, rice, 'oil crops, and extensive live- stock. It also illustrates a region which is just starting to develop intensive agricultural production. The area is typified .byhrgelalfiholdingswhichareprimarilydevotedtobefpro- duction. _ L A- i I General Organisation ' a The future adjus‘bnents that can be made on Colombian farm units _will depend mainly l on present factor conditions arrl also on institue tional. structures. Chapter II discusses the pmsical situation, con- tribution to the economy, and relative position of the agricultural. sector. ‘ I I Chapters 111 through VI each spotlight a different commodity. Wheat and its associated cold-climate crops are ‘ discussed first, followed by feed grains, the livestock industry, and cotton and edible oils. seen of these chapters also treats the honor products which are substitutes in production for the ocmodity spotlighted. ‘fhe smary and general conclusions of the study are found in ‘ the last chapter. ' re 2‘ If IL I. I' camsa 11 m mamas STRUCTURE or com um PARTICULAR WHASIS on AGRICULTURE It would be difficult to find another country of similar size which has such diversity in its economy, topography, climate, and cultural groups as Colombia. Likewise it would be hard to show a case where similar economic progress has occurred under such perplexing conditions. his chapter will present backgrounds on this diversity and economic progress, in order to set the stage for later discussion of various enterprise adjustments. Three general objectives are. pur. sued. They are: l) to form some general ideas regarding the growth arr! make-up of the Colombian eoonony: 2) to describe the role of ag- . riculture in Colombia's developmental process; and 3) to formulate A some general ideas with regard to the quantity and quality of factors available for agricultural production. A discussion of the overall eccncay is presented first: this is followed by additional infometion on the agricultural sector. ’ . l ‘ Background on the Eooncm Early in the 16th century explorers were drawn to the coastal and high mountain regions of Colombia in search of gold, glory, and Christian converts. Unlike the later settlers of the United States and Canada, theydidnctintendtoearnalivingbytillingthe soil. For I“. \.i\\1v uli .‘l. n.1\\-1l 110 may years streams, mines, _ and Indian graves in Colombia were an im- portant source of gold for the Spanish Crown. Up until the late 18th century gold taken from Choco’, Cause and intioquia by Indian and Negro slaves provided most of the lifeblood for trade and comerce in New Granada—later known as Colombia. During this colonial period the Crown made a number of large land grants which concentrated the re- sourceownershipinthe handscfafew, andhelpedestablishtheec- oncmic and social class distinctions which’are still present. Historically, there were four separate regions of development. he first two, in the Sabana-and- the Cauca Valley, were mainly oriented toward agricultural production. Large cattle units associated with small subsistence farms dominated their economies. A third region settled by gold seekers in the 17th century, in Antioquia, became one of the. .principla mining areas, later switched to coffee production and handicrafts, and. finally developed into the leading industrial center of Colombia} ‘nle fourth region included the north seacoast, and the lower part of the Magdalena River basin. Heavy dependence on trading ' with internal and external points, plus production of cotton and to- bacco were the main economic activities. A Income from Crown monopolies of tobacco and liquor in this area was an important source of revenue for the colonial government.2 A I l - 18cc Everett E. Hagen, ‘me Theo of Social Chan at How onomic Growth Be (Homewocd, Illinois: Dorsey Press, 1932;, Chapter 15. pp. 353- , for an interesting discussion of win Antioquenos developed into the. leading business men of Colombia. z'l'heodore s. Nichols, “Colombia In The Colonial Period," _Ih_c, Caribbean: Contem r Colombia, Vol. XII, Ed. by A. Curtis Wilgus 6W: University of Florida Press, 1962), p. 56. N.- bu. II‘I] 15 The three large mountain ranges running from north to south forced the first three regions to develop with very little outside con- tact. A "mile road"_ from the Cause Valley to the Pacific Ocean, for example, was not completed until 1866; a wagon road from the Sabana to the Magdalena River was not finished until after 1900: and wheeled transportation into Medellin from the outside was not possible until 1909-3 Even in the 1960's, nativesyof each of the major geographic regions have distinct languages, customs, and loyalty orientations because of this geographic isolation. Regionalism, church-state ire- lationships, and socio-econcmic. class differences have caused sporadic. ‘ outbreaks of civil disturbances, and hue made it difficult to form a strong central government. Because the Federal-type govermnemt has lacked strong overall control it has been forced to follow the lead of colonial officials and rely heavily on govermnent monopolies and taxes on international. trade to finance goverment activities. h l ' Steg in Develoment Prior to the 1880's, Colombia's economy was mainly oriented to- ward subsistence. lbs rapid colonization of the central cordillera by Antioquenos, and the big expansion in coffee production in these newly * settled areas helped Colombia break out of this traditional framework.“ ' m. pric. umbrella which Brazil tried to maintain over world coffee 3Hagen,o 93.__ cit. , p. 361. “See Albert 0. Hirschman, Journ rugs Toward Proms” Studies of ,Economic Poli 4v! kin In Latin America (New York: Twentieth Century Fund, 19 3), pp. 98-100. for further discussion of this colonization and also for further references on the subject.- in V1 1: [I .1,- ‘c -I"' 16 (mostly after 1920) aided Colombia in becoming the number two exporter of coffee. Eitports increased from just over 100 thousand sacks of cof- fee in 1880, to about 390 thousand in 1899, to some 1,700 thousand in 1919, and to 2,800 thousand sacks in 1929.5 ‘ During the latter part of this period (1880-1929) large banana plantations were established in the- north coastal region, some petroleum resources were developed, and railroad expansion was especially sig- . nificant. Foreign investment in export producing enterprises, income from coffee exports, and the 25 million dollar indemnity paid to _ Colmabia by the United States, in connection with the Panama question, were major items in early capital formation. Much of the indemnity payment, plus some foreign loans and export earnings’were invested in the transportation system. Economic growth during the latter part of the 1920's was especially rapid: gross product increased at a rate of over 5 percent per year, and the coefficient of. investnent reached a - high of over 26 percent.6 . Ashagen notes, some traces of industrialisation started soon I .afteortheturnofthecentury,withthebuildingofamoderntextile mill. in Antioquia in 1906, and of a major'cement plant in the Sabana in 1909.7 8 in. depression of the 1930' s followed by world War II helped to ‘ 5Eederacidn Racional de Cafetoros, Boleti'n de Estadistica, No. 37 (3030156. 1961). p. g8, as quoted in Garland P.‘ 'wo'od' "' "‘Cormree P_roductio in Colombia (Modellin: Facultad ‘Nacional de igronomia, 19325, p. 13. ‘ Wop-aw. . ' I . , - ~5Comisio’n Economica'rPara America latina -(CEPA'L), Anelisis :0 v - a P cciones del Desarrollg Economicg; El Desarro’ llo Econdmico de M .Z'Hexico: United Nations, 1957 - .p.u,...... . _ 73.38.36 22;21_§ee ’Pe 363» 17 retard the growth of the Colombian economy. From 1930 to 1945, foreign investments, except in the petroleum industry, were very limited.8 Even though the quantity of coffee exported increased by over 40 per- cent from 1930 to 1940, the existence of lower coffee prices resulted in increased exchange earnings of only 20 percent.9 During this period. Colmubia was forced to look inward for further growth. Programs to stinllate production of import substitutes were prominent among govern- mental activities up until 1965. ~ ‘ renewing the end. of the war from 1945 to 1956. foreign exchange 1 earnings from coffee exports more than quadrupled, in terms of dollarsiLo In spite. of the big increase in exchange earnings, imports of large quantities of capital and consumer goods during this period caused Colombia to incur trade deficits in seven out of the twelve years (see Table Ill-4). ' in. assassination of a liberal party leader, Jorge Eliecer Gaitin, in 19% helped spark a series of events which eventually resulted in a lI—year dictatorship, widespread civil disorder, and rural violence .. remnants of which still exist in the 1960's. No exact figure is avail.- able on the number killed as a result of'this undeclared civil war, but 8 . CEPAL, 22.9233" 1). 29o 9 . ~. ' ‘ * Banco do 1a Republics, mvm Informe Anual del Gerente a la W (Beam. 1962). Appendix. 10 £351., Pesos were converted to dollars by using the official «shag; :thgé. of 1.752 lines per dollar for 1915, and 2.51 pesos per 18 the best estimate runs as high as 200 thousand during the 1948 to 62 perioden Depopulation in a number of rural areas, especially in the coffee region, has been a direct result of this slaughter. It has been estimated that 800 thousand people changed their residence between 1948 an! 1962 because of the violence.” In Tolima alone, it is es- timated that almost 35 thousand farm. unitsout of some 100 thousand had been totally abandoned by 1957- because of rural disorder.13 ‘ file population explosions in the three major cities from 1950 to 1962 are further evidence of the rural out-migration, and were also directly related to the violence. Bogota, Cali, and Medellin had estimated population increases of 105, 144, and 100 percent respectively over theabove period.“ Although some progress has been made in re- ducingdeaths caused by rural violence, through large military and police emenditures, killings still numbered several thousand per year from 1960 through 1963.15 the failure of the Rojas Pinilla goverment to adopt effective fiscal. and monetary policies for dealing with economic situations L 11 . German Cumin, Orlando Pals Bords, y Eduardo Umafia Luna, 133 Violencg en Colombia: Estugio de un Foeso Socg, VOL 1, 2d Ede, Bogota: - Ediciones Tercer Mundo, l9 . , pe 292e . .21-m" P0 295- f ”Lu-3e 0 De 293e l4 Calculations made from population work sheets furnished by the Departmento Administrative Nacional de Estadistica (DANE). ”In the budgets for the national goverment presented for 1962, one-third of the funds allocated were for the armed forces or the police, whose principal task is to combat violence. Ministro de Hacienda y Credito Publico, Memoria de Hacienda: Presentada a1 Congreso Nacionel ’ d. 1262 (3080“! MB“ Racional, 19 e Po ‘ e 19 caused by wide fluctuations in coffee prices, experienced from 1953 to 1957, and the restrictions on civil liberties, led to the overthrow of his regime in 1957. The formation of a national front government, an! changes in the monetary and fiscal structure followed this over- was ' The new goverment was faced with continued rural violence, low foreign exchange balances, and an official exchange rate for pesos which was seriously ,out-of-line with the "black market“ rate. To further aggravate the situation. foreign prices of coffee, Colomtda' s principal export, continued to drop from eighty cents (0.8.) per pound 4 in.1956e-57, to about forty cents (0.8.) in 1962. Tight controls on imports. a devaluation of the peso to nfree market rate, and some large foreign loans helped ease Colombia' a tight economic situation}7 In addition to restricting imports, the Colombian government re. emphasised production of import substitutes inboth the industrial and agricultural sector. Furthermore, the goverment, under the leadership of President Lleras canargo. attacked the land tenure problem by pass. ing an impressive agrarian refom law in 1961. V hroughout the period from 1880 to 1963. fundamental changes were taldng'place in some parts of the social and economic structure of the country. The large investments made in the internal transportation 168» Federico G. Gil. “Colombia's Bipartisan Ekperiment,‘ in 33 Caribbean: Contem ra Colin-shit}, 93. git... pp. 87-101, and V. l. Fluharty, Qance of t .gj-Iillions: Military Rule and Social Revolution in Colombia 1220-1256 Trittsburg: University of Pittsburg Press, 1957). for further backgrounion this phase of Colombia's history. . 178cc Colombia Cniversity School of Law Public international - - Develo nt Financin in Colombia, Report No. 6, .ZerIork: .June, 1963),. 990 3:8. -mi-;ographed§ for further discussion of-these foreign loans. . 20 system helped draw a number of isolated areas into a market environ- Iterit.]"8 This expansion in the markets enabled some regional spec- ialisation to begin in both industry and agriculture. Furthermore. the transportation network welded the country together and helped reduce the traditional regionalism which has been a problem since the country was formed. Several commonly used measures indicate that there has been a gradual shift of importance away from the agricultural sector. me growth of the industrial and service sectors, for example, has lowered the proportion of people employed in agriculture, and has also lowered the proportion of gross national product contributed by agricultural production. In spite of these measures, agriculture has and is furnish.- ing the largemajority of human and capital resources uponwhich Colombia's development depenis, and is still the most important single economic activity. Additional measures to show how important ag- riculture is, are developed in the following discussion. Recent Trends 113 Sectors' Growth ' During the 1950's‘and early 1960's there was a rapid growth in the output of Golombia's industrial sector. Its gross output ap- proximately doubled during the 1951-1961 period (Table 11.1) . Output . in the agricultural and mining sectors increased only slightly more than the 36 percent increase in population. In spiteof the undeclared 18It is estimated that investments in the internal transportation system from 1900 to 1950 averaged three-quarters of the total public investment. See CEPAL, 92. git... p. 20. The expansion of roads con- tinued during the 1950's and rose from 20,804 to 36,890 kilometers in ' the period 1952-1960.. .Departamento Administrative Naoionel de Estadis’tica (DANE), Anuario General de Estadistica .1952 and 1960 (Bogota, 1954.“.1 respectively e . 21 Table 11-1. Trends in Colombia's real gross product, by sectors, 1951-61 Cross product at 1958 prices index "“‘°' . 1951 1956 ' 1961 1956 1961 (nillione of pesos) , . (1951 . 100) Agriculture 5.632 6,566 7,683 119 160 tuning , ' - ' ' 575 695 629 121 _ 166 industry 1,976 2,867 . 3,299 i 165 ‘ 192 other ' 5,991 6,277 10,016 138 167. All sectors -tcta1 16.177 13.607 22,529 130 159 -per capitasl 1.237 1,381 1.449 112 ‘ 117 5/ Calculated on the basis of the following population estimates from the Revises del Dance de la Republics Re. 620, October 1962. w , _ 1951 ' 11.459.000' 1956 ‘15.534.ooo . 1961 15. 566. 000 » sooner: Rance de la Republics, Departs-emu de luvsstigaciones scone-ices: Cuentas lecionales, 1950-61, (Iogots: 1963 mimeo), p. 16. 22 civil war and falling coffee prices in the latter part of this period, gross per-capita product increased by about one-sixth. The growth of several industries within the industrial sector was especially impressive from 1952 to 1962. Textile and cement pro- _ duction more than doubled, electricity output practically tripled, and gasoline production went up almost fivefold (Table II-2). In addition to the growth in. the industries shown'in Table 11.2. one cannot help but be impressed by the number of items in Colombian. stores with ”made in Colombia'' labels. These include most of the. (drugs, clothing, small appliances, and light machinery. The gradual modernisation of the marketing an! processing of ag- ricultural commodities has also been a factor in the growth ot the non- agricultural sector. is shown in Table (II-3, handling- of agricultural products contributed more than one-fifth. of Colombia' s internal gross product in 1958. In total, agriculture and related production con. tributed almost six-tenths of the 1958 internal gross product. figcent Egnds g gag-rte andImpgrts Since World War II, coffee has made up more than 75 percent of the value ct colenbia's'exports.“ with petroleum and bananas tarnishing most of the balance. there was relatively little change in the mix of. , these experts tron 19115 to 1962. agricultural commodities furnished from 78 to 87 percent of- the total value of goods snorted during this 7 period (Table 11.11). The increase in total value 6: exports and also the increase inotho percentage of exports furnished by agricultural . commodities tron 1945 to 19511.55. largely retlect rising coffee prices. Likewise, the decreases in value of exports,.and in the percentage contributed by agricultural coemcditios tron 1956 to 1962 were mainly 23 Table 11-2. Crowch in output of selected industrial products, Cale-bis, 1952-62 . “Output ‘ . Index -- Industry ' . 1952. 195T 1962 1957 ‘ 1962 1 - (1952. 100) Texti es Thousand _ net. toce‘l’ 27 37 59 137 , 213. Petrolet- 1111 .bbls. , 39 66 52 116 ' 134 sssoline wil.bb1s. 2.2 6.0 '11.1 265 639 llectri- city 161.!“ 34 133 213 176 235 Cuent ' llil .met. 6 tons 0.7 1.2 1.7 175 - 245 y Itonnage of cotton used. '31 Colo-blame (newspaper) March 30, 1963, p. 19, for cotton used in 1952 and 1962. Institute de romance Algodcnerc, Departs-cute de Invas- :igsciones keno-ices: Colonbie-Algodcn y Olsaginosas lnfornscion Istadistics, 1960 (logote': 1960), p. 9, for 195? cotton data. Revista del lance de la Republics lo. 422 (begets: ~ Diciembrs de 1962), pp. 1648-9, for data on petrolstn, gasoline, and cement. Departs-onto Administrative wacional de lscadiscica: Anuario General de lscsdiscica 1952, 1957 (Iogota’: Diciember 1953 and 1958 respectively), and Iolecin Mensual de lstsdiscica no. 166 (boxed: Raye de 1963), . p. 65. table II-3. Agriculturally related production in Colombia's internal gross product, 1958 Ite- Value 6 la lative ' _ ‘ share * (nillion pesos) (percent) Production tron farming, - rishinx and forestry . 7,177 , 35 usrkating' and processing ‘ ' 9 of agricultural productaél 6,530 22 Other ” 8,769 _ 43 100 Totals 20,676 3] Includes 66 percent of the output of the industrial sector, based on detailed data for various divisions: 61 percent of the output of the financial sector, baaed on the types of loans ends; and 50 percent “the output of comerce and transport. ' ~ sooner: C‘lculatd from data of the 1958 Industrial Census. lanco de la lepdblica: Intorne Anual del Gerenta a ‘ la Junta Directive, 1959-60 (logota': 1961), p. 153. 25 Table II-6. trends in Colombia's total value of exports and total value of imports, uith percentages of each related to agriculture Percentage related to Iear ‘l'otal values 4‘ agriculture Exports ' Inports- prortsil Imports?! ' ‘ (millions of dollars)? v (percent) 1965 i 161 .~ ' 161 79 15 1966 , ' 201 _ . 230 33 12 1967 ~ ' 225 1 365 a - 32 11 1963 ' 277 326 36 13 1969 ‘ ' 321 , 265 30 9 1950 -~ 396 365 , 31 3 1951 ~ ' 663 619 , 32 ' 3 1952 'x - 673 . 615 33 9 1953 , . 596 . 567 35 _ 6 1956 . 657 . 7 672 36 ' 6 1955 536 669 ' 37 6 1956 N 537 . 657 g 36 7 1957 . 511 633 33 3 1953 I ‘661 600 ~ ‘31 ~ 9 1959 ' ' 673 616 31 13 1960 ‘ 665 519 , 73 10 1961‘. ‘ 635 557 30', 10 9 1962 603 . 560 7 81 9,! Coffee has accounted for 90. to 95 percent of the agricultural exports. Bananas, tobacco, cotton, sugar, and cattle account tor nest of the remainder. bl Imports related to agriculture include tractors, general (are nachinery, pumps, breeding cattle, fertilizers, insecticides, ~ and similar itens. 3001023: Departucnto Administrativo lacional de latadiatica: , Anuario do Conercio hterior, 1965-1961 (logota: mrious years): also, lolati'n Mensual, Hoe. 166 and 165 (363626: 1am and 19:11 1963). 26 the effect of generally falling coffee prices. ‘ Despite numerous import substitution programs ad the reduced income from coffee experts, Colombia still derived 20 percent of its national product in 1960-61 from the activities associated with in- ports or experts.” ' As can be noted in m. 11.6. imports or tractors, general tam machinery, fertilizers, * and other items which could 'be used in ag- rieultural production, us. up only a mall portion or total imports from 19165 to 1962. Generally speaking, about one out of each eight dollars earned from 1. experts of agricultural commodities from 1945 to ' 1962 was spent ter imports or, agricultural inputs . Colombian gnvestment Patterns Colet1bia has continued to make large investments in‘ its internal transportation system. In 1961 the north seaceast was finally connected by rail with the interior or the country. By 1961. the road system ‘ had also been improved and extended into municipies containing more than 90 percent of the country' 3 population.20 As shown in Table 112-5, about one-quarter of the gross-new investments in fixed capital made in Colombia in61959 an! projected for 1961-64 were for transport. Housing and mamfacttn-ing were two other important items, while gross {new investments in agriculture made up only about one out of each eight pesos. . . . A similar pattern is shown in fable III-6, for the public external ' 193.1666 de la Repub11os,mwn§gomo. 22. Lit" p. 160. zoliinistry of Public Works, Plan “2;; revements in National Transmrtati en, a study conducted by thee ering firm of Persons. Brinksrhei‘t, Quads and Douglas or New Iork Begetd, December, 1961). 4 pp. 14. , 2? I’sble II-5. Percentage distribution oi gross new investment in fixed capital, by sectors, 1959 and projected 1961 -6 Sector 1959 Projected , 1961-6 (percent) Agriculture ‘ 13.0 ' 12.3 Mining 7 .5 7 .1 Manufacturing 13 .7 l7 .9 leuaing V 23 .5 16 .6 llectricity 6.9 7.2 transport 25 .3 23 .8 Other 12.1 15.1' totals 100 .0 100 .0 scorer. Censeje llacienal de Politics Icenémica y Planeacie’n, Departsmento Adainistrative de Planeacidn y Servicies , ‘l'ecnicos: Colombia--P1an Benersl da Desarrello lcendmico y Social, Part I (legeta': 1962), p. 178. 28 Table II-6. Distribution of public external loan disbursements to Colombia by purpose 1965 to June 30, 1963 Purpose Amount Percentage ‘ of total ' Millions of 1 percent dollars islance of payments , -. 269 66 i 1 Transportation 116‘ ' ‘ 20 Power . ‘ , 67 f 12 Agriculture ' ‘ 62 7 We... Commerce ' 30 ‘5 Publicl‘Servicea ' 67 3 Other I ' 16 . 2 '5'3'5' . 1’00" m: Columbia University School of Law: Public International Development Pinancing in Colombia lepert #6 (New York: June, 1963) alimeegraph) . , ' 29 loans made to Colombia during 1965 to 1961. Forty-six percent of the funds loaned during this period were applied to resolve temporary balance of payments adjustments: investment effects from these would be indirect, and depend mainly on the types of goods imported. One- fifth of the loans were invested in transportation, one-eighth in power A rams... and only seven percent in agriculturally related projects. The Agricultural Sector 1 wide range of physical and climatic conditions allow Colombia to grow a large variety of cemedities. ' Coffee is the most important crop, both in terms of value produced and in terms of area (Table III-7). Corn, rice, cotton, potatoes. platanos, bananas, and yuea fellow in importance. The value of beef produced in 1962, mainly for internal eonstmption, was roughly comparable with that of coffee, Likewise, the combined output'ef other animal products such as milk, poultry, swine, sheep an! goats amounted to a similar value.21 Only a small portion of the agricultural output is produced on specialised farm units.22 The incidence of specialisation is higher in coffee producing areas, among large beef producers, in banana pre- duotion for expert, and in the production of cane for refined sugar. 1 Risk considerations, needs for home consumption, and adaptations to existing conditions cause diversified fans units to be the principal type of farm organisation. ' ............. Based on calculations from slaughter records and production estimates of various agencies. 22the tem specialised is applied if 80 percent or more of a fans unit' a real product is from one enterprise. 30 Table II-7. helative importance of principal crops in Colombia, in terms of area planted and value of production, 1962 _._— *1 Planted Value of Crops area . production--- ANHUAI. 1 . (thousand hectares) . (million pesos)». Corn ' , , 697 » -- - 682 Rice . 269 676 Cotton 177 p p 622 Inca ] . 138 , 260 Wheat ~ 129 ' 150 Barley - _ 68 77 ' Potatoes _ 75 305 leans ‘ 76' z 107 Peas and other pulses . 62 32 ‘ Onions and garlic 8 53 tomatoes 6 - 20 Other vegetables 38 - 100 Tobacco 18 J 88 Sesame 60 53 Soybeans 15 21 Peanuts - 3 9 Sorghum ‘ ‘ 10 10 ' Sub-totals 1,785. ’ 2,665 . 21::an ' Coffee 860 1,689 Cane-for sugar . 75 12 -fer panela . 200 18 Platanes ' 220 376 Dananas 56 286 Cacao 32, 90 Crepes 2 60 Pineapples 2 25 liiscellaneeus fruits 161 108 Sub-totals 1,586 2,601 P mus ,3_.__371 321266 sources: Data on areas planted were assembled from estimates by ‘ . various agencies such as INA, IPA, and 10!; production _ data from the same agencies were multiplied by Isaac de . 1a Republics price estimates, in most cases, to obtain value data. , 7 31 Agricultural production in Colombia is carried out under almost all levels of technology. Modern techniques such as aerial spraying of crops, mechanized planting and harvesting, and use of chemical fertilisers occur in new parts of the country. At the same time, the use of oxen, the hoe, ami native varieties of seeds are still common. Specific casescan be found where agricultural resources are being used intensively and efficiently, but most of the agricultural land and human resources are being employed at rates far below capacity. The leg in agricultural growth (shown in Table 11.1). and the under-utilized capacity is an indication of deep-rooted problems, the solution of which would have important implications for Colombia's future. Agricultural Poligz . In attempts to increase agricultural productivity and total pro- auction, the Colombian goverment has followed a policy favoring ag- ricultural self-sufficiency since the early 1930' s.23 Import and ex- . port controls, plus tariffs, were early devices used to. implement this policy. Internal market controls, special credit. facilities, price supports, and developmental activities by semi-governmental agencies have also received substantial emphasis. ' As Witt and wheeler point out, Colombia has pursued several closely connected, although not always mutually consistent, objectives in its agricultural policy.“ Among these are the following: (a) to k 23See Theodore J. Gearing, Colombian A ricultnral Price and Trade Policies (Palmira: Facultsd Nacional de Agrcno a, l , eegraphed) ' and 1.. w..w1tt and R. 0. Wheeler, 93. 3133.. pp. 3647, for.further . discussion ,of policy during this period. . 216 3311—100 PP- 3940- 0% 32 encourage agricultural exports in order to increase foreign exchange earnings: (b) to ensure some measure of internal price stability for agricultural goods: (c) to restrict export of certain items such as beef in order to protect consumers: (d) to replace imports of eg- ricultural commodities by internal production: and (e) to draw off some of the export earnings from coffee, in the form of m1ltiple exchange rates, for use in financing other projects. One of the results of pursuing these objectives has been the elevation, above world levels, of internal prices for a mmber of ag- riculhirsl products. is is shown in Table III-8, the average internal prices in 1962 for wheat, rice, and copra all were well above those of imports. Internal prices of feed grains, beans and oil crops were also above import prices, but to a lesser degreeezs or the commodities shown in Table 11.8, only internally produced cotton could. have compet— ed, price-wise, with unrestricted world imports in 1962. ‘nle general lack of response by agricultural producers to this favorable price structure, plus the failure of a large part'of the rural sector to share in the fruits of economic progress, indicate the presence of serious problems within the agricultural resource base. it this point a more detailed discussion of these resources and associated institutions is appropriate. A r A 1 . tel and Credit host or the capital in the agricultural sector is committed to eeeeeeeeeeeeee 25 . ' Witt and Wheeler show similar price relationships for 1959 based on _s131}83port prices and world prices without transportation charges. ads 5 Po e ' 33 Table 11-8. Comparison of producer prices and import prices for selected farm products, 1962 Average Commodity prices Import - V received prices!!! . (pesos per metric ton) when: . _ ' * 957 651 Parlay ~ 716 592 use, polished ' 2.120 , 1,360 Corn 600 ' 533 - 8erght- . ‘ 550 . 513 Cotton fiber 5,070-‘3’ 5.3372/ * Soybeans . 950 . 907 leans ‘ 2.030 _- 1.375 Cepra _ 2,600 ' .' 1,362 g] lstimeted prices which would have been paid for imports to Colombia from principal sources, including ocean freight . 21 "Strictly middling" grade. 57 pr‘ort price received, plus freight. scuscss: Computed with estimated adjustments for freight charges . and exchange conversions, from various reports of Colombian agencies, the D.8.D.A., and the Peed and Agriculture Organisation. . 34 land resources or cattle. The 1959-60 Census of Agriculture showed only 13,138 tractors being used on farm units.26 Only about 20 percent of the presently cultivated land. is farmed with mechanical equipment.27 Capital investments in equipment vary widely between farms. A 100 hectare farm in the Cauca Valley producing corn, soybeans, and. grapes may have 250,000 pesos invested in equipment, while a small potato, corn, and wheat grower in Marine may have less than 100 pesos invested in hoes and a small‘hani sprayer. For a number of reasons, special goverrmental actions have been necessary in order to channel credit toward agricultural production. Examples of these attempts are the formation of the Banco Agricola Hipgtecarie in.192#3 the Caja do Credits Agrarie in 1931, and various special banks tor major cemedities during the 1950' s. In addition commercialbanks are required to loan no less than 15 percent of their deposits for agricultural purposes. In spite of these special pro- grams, the proportion of loans going into agriculture has not been especially large. Only 28 percent of the value of the new loans made between 1955-59 went to agriculture (Table II-9) . Furthermore, sheet 60 percent of the credit going to agriculture in 1960 was for cattle or lard purchases. Some loans by public agencies carry reasonable rates of interest, butcemercialbankloansmaychangeB tolSpercentperyear, and private loans by individuals may carry interest rates of m5 percent ....... 26Depazrtamento Administrative Nacional de Estadi’stica, 'W Nacionalde Eacoletaciones Aggpgcuarias' SCense Amecuario) Resumon Nacional 1260 Bogota’, 19 . . 278ar1and P. wood and Guillermo A. ouerrs s. . Land Use in Colombia (Medellin: Faculted de Agroncud'a, 1962), p. 5. (Mimeographedn 35 table 11-9. Comparative distribution of new loans made and of the gross national. product by sectors, 1955-59 ’ «a» “3.23:“ ‘ "1:2“ 3 (percent) Agriculture _ ’ ' 37 ' 28 Industry . 16 . \p 22 Conerce 12 . . * 38 services and other a ‘ _§_§ , ~ _1_2_ reun- 100' ' 100 sooner: Ministerio de Agriculture (such); Ls lstructura del cram mica. en Colombia (sugars: 1962 mince), p. 26. p . 36 per month or more. The relatively low rates of agricultural investments shown in fables II-S and 112-6, plus the tight credit situation faced by most agricultural producers, are prime reasons for the slow modernization of the agricultural sector. Because credit is difficult and costly to obtain, many farm operators are very unwilling to undertake practices which could result in financial losses. Agricultural Land Resources ThetotalareaofColcmbiais aboutthesameasof'rexasand California combined. A large part of this 1. formed by theAndean Gore which takes up the central. part of the country. Another sizable portion along the west coast and in the baton basin is covered with heavy'Jungle. 0f Colombia's llllr millionhectares, less than one-third "are «puma in agricultural production (1'.an 11.10). Although ' one-quarter of the land area 1. in pastures, mono: this 1. in rough mountain country, dry eastern plains, or on wet lard along the north coast. ' I ' 1 As can be seen in Figure II-l, crop production runs from north to south along the rich river valleys and is also found on the sides and tops of the mountain ranges. n1. "type-cf-farming associations shown in Figure II-l. illustrate the diversity of agriculture. Only 5 percent of the land is in crop production; roughly 60 per- cent of this. is in temporary crops, and no percent in perennials such. as. coffee, sugar cane, platanos' and bananas. The relatively high pro- portion of the cultivated land in permanent crops is '. factor which slows changes in land use, with respect to changes in product or'fact- or prices. - . O 37 Table “-10. total land use in Colombia, 1957, and use of land in farms in 16 Dcpartsmcntos, 1960 3:95:11 land use, 1957 Land in farms in Ilse Percentage 16- Dcpartamcntcs .Atea distribution - 19 60 (thousand , (percent) (thousand hectares) » -' 3., hectares) Permanent crepe -‘- -- ‘ 1,458 reworary crops -’- -- 2,015 Sub-total -- ' -- 3,673 Connercial crops 3,231 2.8 ' -- Idle farm land 2,569 2.3' ' 1,581 leturel and arti- - ticial pastures 30,000 26.3 14,626 AGRICULTURAL 35,800 ‘ 31.4 19,530 anus and was 3.24:0 299 . "’ _ alvns, tans, , sum 5,360 . 4.7 - .. can 69 .435 61 .0 7,692 from. 113,835 ' 190.0 . 27,372 scorers: 'Hinisterio de Agriculture: Hemorie a1 Congreso lacional, ‘ 1957-8, tone I (logotd: 1958), p. 190. Dcpartamento Administrative Nacicnal de letadistice: . Directorio national de kplotacicnes Agropecuarias 1960 , laminae national p. 16. (logota’: Die. 1962 processed), 38 Figure 11-1. TYPE—OF—FARMING 0 ASSOCIATIONS IN COLOMBIAA N 'f‘I C' (preliminary) T L 7‘ _) A aura m #- J for prelimi LEGEND nary map of TYPE-OF- FARMING ASSOCIATIONS Mixed cool- climate crops Dairying Coffee Mixed hill crops Livestock Mixed valley crops Forest or jungle IN COLOM BIA v 0 0.. e9. 0 O 00 O 0 x xx K x xxx K xxx Y Mixed cool-climate crops with dairying Coffe with mixed hill crops Livestock with mixed valley crops 39 Land Investments 1 cut-and-burn type of farming has cleared thousands of hech which were once in timber and undergrowth. Intensive cultivation and heavy pas‘hiring without appropriate soil conserving practices have led to widespread erosion. It has been estimated that Colombia loses over 200 thousand hectares of arable land each year.28 .The Departments of Boyaca sloneis estimated to have one million hectares of seriously eroded 2|.ands.29 Erosion is also noticeable in the mountain regions growing cereals, the coffee. areas, and the tobacco growing areas of Santander.3° Some attempts at- reforestation by moon. and programs promoted by the com. Federation to show em; pronto... bow to plant on the contour and use machetes instead of hoes'in cleaning are only: small efforts in .m... to the need. . . A good deal more effort has gone toward large irrigation-drainage- flood control projects. Some 20 of these were in early planning or construction stages in 1962, and included ‘over one million hectares of 1311.31 , Activities by the Cauca Valley Corporation (CVO) were espec- idly, impressive in drainage and irrigation projects of an; to medium ‘ M sizable irrigation projects completed during the 1950's Comite Nacional de Planeacio’n, Mision 'Economia y Humanism," c 1 his (Bogota: 29» reported in E1 ggionbiono (Medellin), May 20. 1963. 30See Fernando Snares de .Castroyiilvarohodriguez Grandas, .13- vesti aciones Sobre la Erosio’n 1a Conservacio’n de los Suelos e . golomleogotsZ: Federacio’nde .Cafeteros, .19 p . . . . - . - . 7 - . . . _ . . 33Wood and.Guerra,29_p.. 93.3., p. 23. 1+0 in the Departamento of 'l‘olima illustrate the problems connected with these types of inveshnents. Some 15 thousand hectares were scheduled for irrigation in the Coello River area, but only one-quarter of the ”P9011? is being used.32 Rice is practically the only crop now being irrigated, in spite of the fact that both intensive cotton and sesame production can be founl within the project. Similar results have. been experienced in the neighboring Saldana River project which included 10 thousand hectares. At least for these two cases, the engineering,» planning, arrl operations appear to have been superior to the economic, and social studies and applications necessary to make a success of the project. Other projects have been planned for areas with from 110 to 100 inches of: rainfall per year. Sisable benefits have been pre- _ dicted for some of these projects, but the economic Justification of themappears rathershakytoammberofempertswhohaveexaminedthe menu. evidence. ' ' Size of Land Holdings v. _ The large lani grants previously mentioned caused a dispro- portionate distribution of laxrl . among farm units. Large land holdings are still ccmcn, ‘ even though a number 'of downward modifications in .sise have been made in the original grants through divisions among families, parcelisation an! sale, and legalization of squatters' claims. % Partial data- from the 1959-60 agricultural census for three in- portant departmentos show that only 2.3 percent of the units enumerated . . Arcesio Tovar Andrade, 'Prohlemas 'ngnononiooe de los Distritos - de Riego y su Posible ’ Solucion, ! Economia Gran Colombiana, Vol. 6, “Ge .17 (303015.. 1962)e .PO 2120 . . 41 had over 100 hectares, but included almost 50 percent of the total area (Table Ill-ll). Almost the reverse was true for units under 3 hectares which made up over 50 percent of the units, but only had it to 5 percent of“ the 1am. Estimates for 16 departamentcs by CEPAL, based on 1951 data, roughly agree with the partial 1959-.60 census results, although definitions used may have been slightly different. ' In 1962 INCORA began to register large land holdings, starting first with all individual or corporate holdings of over 2 thousarrl hectares. 1 total of 1,238 holdings with almost 7.5 million hectares were declared.33- Almost once-half of these holdings were located in the eastern names. Out of this group INCORA selected 257 for further shady. A frequency distribution 1y site appears below. 3!} Size of Holdings Properties (Hectares) - (umber) 2,000 .. 2,500 ‘ ' 93 2, 501 .. 3', 000 ' 25 “.001 .- 5,000 27 5,001 - 10, 000 n 32 10,001 - 20,000 _ 21 20,001 a 100,000 ~ 11! Total ' 257 This intonation on land holdings, being collected by INOORA, should be . some of the most accurate data collected on large land ownership to date, 33Institute Colombiano de la Reforms Ayaria (INCORA), gni‘orme 3e Ac_t_i_vidades en 1262 (Bogote: Imprenta Nacional, 1963), Appendix, p. 21. q. - ~ 3“ Jesus M. Montoya Restrepo, Alternatives dc muccién x can do la Tierra en Grandes Pro iededes de Colombia, a preliminary draft of a thesis to E; suhnitted to the Facultad .de Agronomia at Medellin. 42 luble ll-ll. Number of farms and land in farms by size of holding, with percentage distributions, in the Departamentos ot’caldas, Cundinamarca and Velle del Canes in 1959-60 and in 16 Departamentos of Colombia, 1951 Farms Land in terms Size of three ‘ Sixteen Three Sixteen holding depts. dcpts. depts. depts. 1959-60 1951 1959-60 1951 (hectares) ‘ ' (numbers) (thousand hectares) less than 1.0 68,939 112,090 ‘ 34 56 1.0- 2.9 72,167 225,480 135 ~ 408 3.0- 4.9 _ 36,539 121,810. 139 487 5.0- 9.9 43,443 136,510 = 305 1,024 10.0- 49.9 42,526 165,481 876 . 3,911 50.0- 99.9 g 6,450 29,943 442 2,246 '100.0- 499.9 5,392 25,072 1,084 7,522 500.0- 999.9 576 2,902 ' 382 2,176 l,000.0-2,499.9 184 1,212 254 2,121 2,500.0 or more 34: 342 137 2,738 ‘rotale 276.2509! 320.342 3.7382! 22,689 “naturist DISTRIBUTIONS: (percent) (percent) less than 1.0 25.0 13.7 0.9 0.3 1.0 - 2e9 26s). 27s: 3e6 1.3 3.0 . beg 13.2 14.8 3.7 2e1 5.0 - 9.9 15.7 16.6 8.0 4.5 10.0 - 49.9 15.4 20.2 23.1 17.2 50.0 - 99.9 2.3 3.6 11.7 9.9 100.0 - 499.9 1.9 3.1 28.7 33.2 500.0 or more 0.4 0.5 a 20. 31.0 Totals ' 100.0 100.0, ' 100.0 100.0 gyfithe 1960 totals for 16 Depertanentos were 1,209,663 ferns and 27,371,771 hectares. WIS: Universidad del Valle, lacnltad de Ciencias lcondnicas: Censo Agropecuario del Valle del Cauca, 1959, Idicidn Preliminar (Cali: October 1961), Cuadro 1. Departanento Administrative Hacional de lstadistica: Di- rectorie Nacional de Explotaciones Agropecuarias, 1960, Vols. 1 and 11 and lesdhen national (Iogotd: 1962). calisidn [conduits para la_Anérice Latina:'Andlisis y Proyecciones del Desarrolle lcondnico--III. ll Desarrollo _lcon6mico'de Colonbia--Capitulo VII. ~le Agriculture Colombians. 8188-12/1365/Add. 1 (Bogart: laciones Unidss V go lease-ice y Social-imam, July 20, 1955), Cuadro \ 43 but still probably understates the size of Operating units. This arises because it is common practice for titles to different parcels of lard to be distributed among family members, even though the land is . operated as one unit. Much of the land in these large units is in rough mountain coun- try, wet coastal areas, dry eastern plains. or is not serviced by a satisfactory transportation system. Cattle production is the most semen type of econodc exploitation 'on these large units. Tenure . About three-quarters of Colombia's farm land is owner operated, although some of this may be through a-hired manager or under some special men arrangement (Table 11.12). About 14 percent of the land is Operated by m or squatters, who do not have clear title. Fem production under rental arrangements, share cropping, ani special partnerships, does not take up a large percentage of the land in farms, but is important in terms of number of farms involved and is especially prominent in] certain crops. About half of the cotton, for example, is'grown on rented land, ani almost three-quarters of the area in tobacco is operated by sharecroppers. Tangled tenure arrange- seats are also varycomonin‘the cerealpreducingreglons andi'nrice production. I I , Owner operated lands are more common in coffee regions, and in cattle arr! dairy units. | f ‘ Land Tenure Policy . ' the formation of INCORA in 19611:“ only one of a long series of public-actions aimed et'ehnn'ging ceienhdefe land temre system. Spanish 'l'able 11-12. Distribution according to tenure of land in ferns in 15 departancntos, 19603! - Percentage Ion-.01 tenure . Area Distribution (thousand hectares) (percent) Owner operated 20,568 75.1 Operated by renter - paying in cash 659 2.4 - paying in kind 73 0.3- - paying in cash and kind 26 0.1 - paying in share of crop 1,105 4.0 - paying in services . p 91 0.3 - paying in other forms 533 2.0 Operated by colcnos 3,755 13.7 Other 562 2.1 fetal _ ' 27,372 100.0 _e_/ Includee the Departs-ante of Ohocd, the intendencias, and the A ceeisarias . scones: Departs-ante Administrative flscional de lstadistica: Directorio, Incional de lxplotaciones Agropecuariae, 1960, heathen lacienal (logotd, Die. 1962), p. 15. 1+5 kings as early as the 16th century were issuing decrees aimed at forcing more intensive use of large land grants,35 Concessions made to Antioquefio colonizers in the late 1800's and early 1900's were im- portant steps toward more intensive use of Colombia's land. A high point in goverment attempts to legislate land reforms came with the passage of Law 200 in 1936. Two hey points wore included in this law:- squatters who had been established on private property for over use years could not be evicted, and all privately owned land in unite of ever 300' hectares, which remained untilled for 10 year. in succession, was to revert back to the public domain. Some titles were later granted to squatters on private lands, but nothing we done about confiscating under-utilized holdings. ' Various tax schemes ani special lan‘l classification programs . were-proposed and partially enacted during the 1950' “36 None of these proved adequate to meet the problem. at hand. i The formation of INOORA by Law 135 in 1961 had six principal ob- Jectives: ' 1. to eliminate the inequitable distribution of land resources, 2. to help fonn economic enterprises on under-utilized lanl, 3. to increase production and productivity of resources within - agriculture, «a . u. tohelp raise the general standardlof livinginthe rural ‘ areas, ~353ee Albert 0. Hirschnan.o pp. cit., pp. 93-158, for further intonation on Colombia's land tenure policy. 363” International Bank for Reconstruction and Dovelopment, The ‘Basis of a Devel ent Pro am for Colombia (Washington, 1950), especially .Chapters 5 and. .. ~ 46 5. to assist in making better contractual arrangements for nonowners of lad, 6. to aid in conserving the natural resources of Colombia. fly the latter part of 1963, INCORA had given new titles to nearly 7 thousad families for a total area of over 300 thousand hectares.” Man of these families were settled in colonisation projects on public lads. A useful by-produot of INCORi's activities has been the greatly decreased rate of lad purchases by larger larrlholdersul Agr_icflture's Hmnan Resources . no lack of public inveetmente aimed at improving the. economic ad social well being” of Colombian farm people is even more apparent than the shortcomings in land inveehnente. in. rural individual is . ~ often stereotyped as a poor manager, lazy, and largely indifferent to change, but the lack of education, health facilities, ad other social opportunities- largely helps to explain rural individuals' reactions. Unfortunately, the problem of determining the member or people who live on farms, ad the number who doped on fans income for part or all of their living, is largely unanswerable from data presently available.- The process of using the placeof residence, as was done in the 1951 population Census, gives a. false impression since new operators ad farm workers live in so-called urban centers.38 As a general rule. towns ad commudties in Colombia with less than 10 thousad inhabitants fail to‘take on. mam urban characteristics.39 37» reported in In 'Colombiano, August 31, 1963. p. 3. eeeeeeeeee itants urban, and. those with less rural. 393.. two studies by the Facultad de sociologi'a of the Universidad 47 Using this as an approximate guide, over 65 percent of Colombia's population would be living in areas where agriculture is predominant (Table 1143). Little or no research has been done on determining the sources ad sizes of nonnfarm income earned by fans people. Sketchy infor- mation gathemd while making the preliminary surveys ad case studies suggests that in. some instances non-farm income may contribute a sim- able portion of so called farm-families' incomes. Small tiedas or 1 - shops are common in farm homes throughout Colombia. Also, a lumbar of merchants, professional men, and government officials own ag- ricultural lad from which they earn significant portions of their total income. ' Rural Health Even though some excellent health facilities are available in Colombia, doctors, dentists, ad hospitals are heavily concentrated in the larger urban centers. In a partial attempt to offset this rural health disadvantage the goverment requires new doctors to practice ,‘ one year in rural. service. Nevertheless, it can be observed that in- fant mortality in rural areas of Antioquia in l960was ll8 per thousad while the average for the Depdrtamonto was only 72 per thousand.“0 ' Furthermore, one m note that residents of Bogota? in 1960 received Nacional, Andrew Pierce, Factores Sociales ue Indicen en el Desarrollo ,Econdmico de la Ho a del Rio Subachogue (Bogoté, February, 1963), - (Mographed), and A. Eugene Havens, A Socio-Economic Stud of.Cerete’, Cordoba - An Area of Latifundio (Bogotz, June, 1963)., (Preliminary e Mamlsoript.) A “Governacicn do Antioquia, Departamento Administrative do Planeaei’on,: Plan General de Desarrollo Para Antio uia: Part fl (Medellin, Ootober,l table 11-13. Distribution of Colombia's population by size of commity, July 1962 Percentage Sise group . Population distribution (thousands) (percent) a. Cities of 20,000 or more: ' 100,000 or more 3,446 24 50,000 - 99,999 583 ‘45 20,000 - 49,999 564 J! Sub-totals 6,593 32 3. Cities o: 5.000 to 9,999 in nunieipios of 20,000 or more: - 10,000 - 19,999 402 3 5.000 -- 9.999 313 2 ‘ c. All others 9,133 63 totals 16,666 100 800103: Cnpublished data from the files of the Departanento . Administrative. National de Istadistica. 49 innoculations for typhoid and paratyphoid at the rate of 97 per thousad, while residents of the heavily rural Departamentos of cordoba ad ' Marine, where the water supply is less carefully protected, only re- ceived 36 innoculations per thousadfil ‘lhe DDT spraying program carried out in most of the warm climate regions has helped to reduce malaria ad yellow fever in rural areas. In 1957, over 76,000 people, mainly in warm climate rural areas, re- ported cases of malaria. By 1962, with the help of house-to-house spraying programs, this number had droppedto less than 18.000.“ Malaria ad yellow fever appear to be well on the way to being con- trolled with innoculations and sprays, ’ but internal parasites, mal- ‘ nutrition, ad dysentery contirme to sap emery from rural residents. (Platanos, rice, yuca, potatoes, corn, beans, ad panela (crude, brown sugar) make up the staples or rural diets. Low intake oi'protein ad green vegetables leads to a generally inadequate diet. The (cone sequence of this diet is reflected in the short stature. bad teeth. ad general debility of rural people. ' ‘ Although some 1&7 million dollars worth of PL #80 foods had been donated to Colombia under Title III up to mid 1963. “3 relatively little of this food reaches the rural areas. One cannot help but woder what the effect on overall productivity would be in agriculture is healfll 1+1 Departmento Administrative Nacionsl de Estadistica (DANE), magic General do Estadistica 1260 (Bogota, 1962). -. .......................... Q. l“Unpublished data provided through the courtesy of the Min- isterio de Salud, Bogota’. ' lb . 3'0. 8. House of Representatives, _p.___ cit. , (18th Semi-annual by“) ' .pO‘ 107. 50 facilities ad stadards in rural areas were as high as in the urban areas. Primary Education in Rural Areas As of July 1963, it was estimated that 1.7 million of Colombia's 3 million children of school age (7 to it) could not read or write.“ The paucity of education in agricultural areas is especially noticeable, ad affects the productivity of operators as well as of workers. - .W last, five years of elementary education are obligatory. In fact, almost 80 percent of the rural schools offer less than three years of education (Table II-lllv). This contrasts with over half of the urban schools which'have a complete 5 years. .As could be expected, few rural children complete their primary education ad are eligible for further formal training. The data in Table III-15 show that more students register for the first grade in rural areas than in urban areas, but that only a small fraction of. these rural children are able to complete the required 5 years. In addition, the proportion of eligible students attending school in the rural areas is obviously low- or than elsewhere, although no depedable data are available to sub- stantiate this. Sane rural schools offer classes only on a half-time basis, since it is conunon to‘use a single building ad teaching staff for separate groups of boys ad girls. The level of education, moreover, of rural teachers is considerably below that of their urban counter- parts. Data for 1960 showed that 68 percent. of the rural teachers had less than 10 years of renal education, while only 31 percent of the .“t Departmento Administrative llaeional de Estadistica, Bo__l_.__’_otin nonsual do Estsdistica, No. 151 (sogoté. october, 1963). p. 13. Table Ill-14. Distributions of urban and rural schools according to the highest year offered, 1960 lighest year Numerical distribution Percentage distribution Urban: effcred M aursl first ' soc . . 907 s ' 7 second ' 731 9,531 12 72 Third 776' A ‘ 1.947. , 12 15 rourth 1.033 ’ 631 17 5 me - , 2.2.8.8. _222 .__51». _1. ‘ Totals 6,241 13,275 100 100 3! Urban schools are those in the central city of each mnicipie. They are generally much larger than the rural schools . WI: Departs-onto Administrative uacional de lstadisticat ‘ Anuerio General de lstadistics, 1960 (logota’: 1962), ' p’e 225-7. ' . Registrations and completions for the 5 years of primary school by urban and rural students, 1960 School» Registrations Completions year Urban Rural Urban Rural _ (thousands) first ~ 373.0 406.0 231.5 '226.7 second '256.7 192.0 .169.8 123.4 Third 193.7 30.5 132.4 20.4 ' rourth 133.3 3.4 96.2 5.3 ritth 93.3 2.4 74.1 1.3 Tetals 1,051.0 639.3 704.0 332.7 MIC! Departmnto Administrative lacional de tstadisticat. Anuario General de lstedistica, 1960 (legeti: 1962), . various pages. ‘ . 53 urban teachers did not have more than this. Over one-quarter of the rural teachers had less than 5 years of formal schooling while only 5 percent of the urban teachers fell into this group.“5 be combined effect of those coditions is the virtual exclusion of rural students from secondary schools ad universities, except for those few whose parents can artord to send then to city schools. _ higher Apicultural Education 0! almost 31 thousad university students in 1962, only six per- . cent were majoring in agricultural subjects (Table II-lé). This low proportion is hard to reconcile with the importance. of the agriculture sector in Colombia, ad the fact that it is generally this sector which has most of the non-Pareto-better adjustments to make during the growth process. Furthemore, the less than two thousad students majoring in agriculture are spread thinly among 9 institutions. are agricultural educational deficiency is even more serious with regard. to vocational or normal schools for training sub-professionals or mrtos. Presently there is only about one mtg for each three 53m ad veterinarians, even though a reversal of this ratio could enable the limited number of professionals to extend their influence more widely.“ Some sub-professional training is being provided by SEM (Servicio Nacional de Aprendizaje) . In 1962 some 19 thousand Students were registered for SENA classes, but only ll percent of these _—¥ ‘— Couputed from the Anuario General 1960, 22. g—itee PPe W37- “Caution do Educacién Agricola Superior, Educacién Asricol W en Colombia (Bogota: Udversidad national, April, lms. Table 111-16. Distribution of Colombian university students by majors, 1962 Numberical distribution najors Within Outside - Percentage Country ‘ Country Total distribution. (numbers) . (percent) Agriculture 1 ,954- 138 / 2 ,092 6 Education 1,536 95 1,631 5 . lngineering 6,7789 560 7,338 22 Pine Arts 2.511 .3 136 2.647 3 Iumanities 2,103 353 2,466 3 Law (4,387 48 4,435 13 Medicine 4,646 425 5,071 15 lateral . Sciences 3, 132 189 3 , 321 10 Social Sciences 3,837 468 4,305 13 Totals 2,417 33,306 100 ‘ 30,889 SOUICI: Departamento Administrative lacional de lstadistica: semis 11eneue1 lo. 146 (Iogota': hey 1963). pp. 119-20. 55 4 were for agricultural topics. 7 A few other agricultural vocational schools supply a trickle of technicians. Extension Education Rural extension activities began in Colombia in 1954. The number of agencies as well as the numbers of individuals involved have in- creased considerably side then. In addition to extension activities carried out by the Ministry of Agriculture, other groups such as the National Coffee Federation, the Cauca Valley Corporation, the Cotton ad Tobacco Development Institutes and several other agencies function ' in an extension capacity. In 1961, the number of extension workers ad administrators employed by the first five mentioned agencies totaled 678. About three-fourths of these were employed by the Coffee Federation alone.“8 7 file division of responsibility for extension among these various agencies has. somewhat reduced its effectiveness. Idividuals, promoting cotton production, for example, may not be well trained to handle farm management problems outside of cotton production. Furthermore, a number of extension agents have their interests divided between est. tension activities ad private business. Few of the 1,000 farmers in- terviewed in the prelininary survey had made contact with ad received ' help from extension people. A large proportion, especially outside the coffee areas, asserted that they hadfailed to receive technical fi— WServicio Nacional de Aprendizaje (SENA), We 30. 29' (3080“. 1963). pe6 -. . ,. . . . ..‘ ..... . . Ffinstituto Interamericano de Ciencias Agricolas de' la OEA. Estudio Analitico do Cinco Or anizaciones dc Extensio’n en Colombia Why -c°8t3 Rica, .19 2. Preface. ' 56 assistance from anyone. Heady‘s comments that education can be used for changing or maintaining the pattern of personal income distribution, and that the poor can be kept in a state of poverty by withholding education from them, have considerable applicability in Colombia—especially with respect to the agricultural sector.” ‘ Summary . As has been noted in the previous discussion, agricultural pro- duction is still a major [feature in Colombia's econonw. The continued rapid growth in the idustrial sector will largely depend. on imports of capital goods paid for by experts of agricultural commodities, ad upon raw materials furnished by agriculture. Furthermore, the degree to which agriculture is able to continue increasing production to meet these demads, while feeding a rapidly expading population, will large- ly detemine whether imports are to consist of capital goods or foods. In 1960, the difference in product per person betwaen the ag- ricultural ad industrial sectors was approximately 8 thousad pesos— roughly 3 thousad pesos to 11 thousad pesos respectively-this im- plies that significant progress can be made in increasing productivity in agriculture.50 A recent proposal would do this by moving some 20 ”Earl 0. Ready, A cultural Poli Under Economic 'Develo .. ent (Amesxlowa3tatePress,l92,p.509. . . 5°Consejo Nacional de Politica Economica y Planeacicn Depart- amento Administrative dc Planeacion y Servicios Técnicos, Plan Cuatrienal de Inversiones Publicas Nacionales - l 6l-l 6h (Bogotd, 57 percent of the rural work force, idle hands ad “marginal farmers". into the city over a period of several years, ad by mechanizing much of the agricultural production.51 This proposal, ad others similar to it, overlook the fact that large investments must be made in the health and education of rural individuals before they can successfully move into an urban environnent. Rural to urban migration, furthermore, teds to consist of young, healthy, ad better educated idividuals rather than of so-called “marginal farmers”. Itis therefore possible that increasing the » rate of rural migration may decrease rather than increase rural productivity, even if this migration is partially off- set by more farm mechanization. ' ' Obviously no simple method exists for increasing total ag- , ricultural production ad resource productivity. Special price in- . centives, crop develcpnent programs, lad redistribution, ad induced migration ad mechanization will each only be partially successful. It is no mere coincidence that the United States invested billions of I dollars in education in rural areas, ad additional billions in ag- ricultural lad investments, before ad during its large increase in ' food ad fiber production in the mid-part of the 20th century, ad that colonhda finds itself with a lagging-agricultural sector, having failed to make similar investments. ' I ‘ Investments in rural health and education will need to have high priority if the present lad reform program is to succeed. Further- more, these investments will, be needed if farm units are to developthe flexibility necessary to adjust to various external pressures ad stim- uli such as might be provided by various levels of PI. 1‘80 programs. ' .SISce Lauchlin Currie, Ens‘ayos gobre Planescidnflntroduccidn a. anageoria de Desarrollo Conocida Como‘C eracio’n Colombia Bogotaae I. nee iercer a o, 6 , espoc . CHAPTERIII MOTION ADJUS‘MENT POSSIEELITIES FOR WHEAT AND W ENTERPRISES Wheat and flour made up 56 percent of the market Value of all Title I commodities programmed for shipment to Colombia through mid- l963.1 Large quantities of commercial imports were also necessary to satisfy internal needs. Imports of wheat in 1962 were valued at 'over 13 million dollars, which ranked wheat as the lumber one agricultural comedity importez wheat production made up less than three percent of the total value of the principal crops produced in 1962 (Table Ill-7), but it was an important enterprise and source of income for thousands of Colombian farms. ' ‘ Production ad Import; i-rerds The production of wheat in Colombia more or less doubled be- tween 1932 ad 19%., going from 77 thousad metric tons to about 11le ‘ thousand metric tons.3 Bad weather, poor management practices, ad ' ‘ - 10. 8. House of Representatives 9. 9%., (18th Sedannual Re- PO“). Pe 67e . , Departanento Administrative Nacional de Estadistica. Boletin 58% do Estadistica, NOe 11‘s (3030“. Aptil. 1963). Pe 36e 3Theodore J. Gocring, wheat Production in Colombia (Palmirax: Facultad Nacicnal do mam. pf2.04imeograph.). . l 59 disease problems actually caused total production to drop as low as 81 thousad netric tons in 1915.“ The introduction of rust resistant varieties, fertilizers ad better production techniques in the early . 1950's helped to return output to roughly the 1941 levels I Estimates of wheat production ad area harvestedIvary a great deal among different reporting sources. It is not uncommon for agencies such as the Caja Agaria, ad the Instituto Nacional de ghastecimi'egtos (IRA) to publish estimates which may differ by 25.50 percent (Table III-1L5 The“ domestic production data presented in Tables III-l ad III-.2 are, therefore, by no means precise, but they do idicate a rainy constant rate of total production during the 1950?: ad. early 1960'“ I . ItcanaleobenotedinTableIIIJ-Zthatimportsofwheatteded to become a larger portion of total supply from 1958 to 1962.. Unless internal production is significantfly' increased it is probable that 5 Colombia will soon 'be consistently importing over half of its wheat" We . h I . I Guillermo Palacio Del Valle, Desarrollo Agi’cola de Colombia w (Bogota Ministerio de Agriculture, Economia Agricola, 53.. Gcering, _p_. cit. , (Wheat Production) pp. 3-6, for further discussion of these data discrepancies. Table 111-1. Total wheat production and area harvested in Colombia as reported from two different sources, . 1950-62 ‘ Total production Area harvested Yield per hectare Tear .. Ca ja INA Cajs INA CeJa 41m (thous. cons) (thous. hectares) (met. tons per hectare) 1950 102 V n.a. 144 n.a. 0.71 n.a. 1951 130 ' ; n.a. 174 v.n.e. °~75.A n.a. 1952 140 1 n.a.' ~188 ‘n.e. 0.75 n.a. 1953 145 n.a.' 175 n.a.y 0.83 n.a. 1954 146 n.a. 195 J ‘ n.a. . 0.75 n.a. 1955 147 166.5 195 211.7 ' 0.75 0.79 1956 150 ' 160.0 132‘ 203.4 1.14 0.79 1957 1842/ 158.0 I 1701, 180.3 1.08 0.88 1958 156 129.0 178 , 121.8 0.88 1.06 1959 150 130.7 160 116.9 0.94 . 1.12 1960 153 145.2 170 ~.135.6 0.94 1.07 1961 n.a. 142.1 _ n.a. 160.0 n.a. 0.89 1962 150 162.0 125 129.2 1.20 1.26 3/ Other estimates for 1957 have been as low as 100 thousand tons. scuacss: 'Caja de Credito Agrario Industrial y Minero, Departments de Investigacicnes lcondmicas: lstimativos de Heduccioii de Trigo (logocd: uarsc llo, 1961,0113») : Carts Agraria, No. 80 and lo. 101 and No. 124 (logoté: tnaro and Noviembre 1962 and November 1963) . Institute lacional de Abastecimientos: mimeographed work- sheets on production and ccnsuption of wheat. 61 Table 111-2. Principal sources of wheat and flour supply in Colombia, 1950-622’ Principal supply sources Imports as a percentage; 1“” Domestic "Commcrcial P.L. 480 Teral of supply, production imports imports ' (thousand.metric tons) (percent) 1950 I 102 74' -- 176 42 1951. ’ 130 . . 65 -- 195 33 1952 140 . 57 e- 197 29 1953 145 58 ' ' -- 203 ’29 1954 . 146 , s7 -- . ' 233 37 1955 167 55 . 22 244 32 1956 160 51 56 267 40 1957 157 a, 58 ’ 63 278 43 1958 129 82 28 239 46 1959 131 24 86 241 46 1960 145 62 A 63. 270 46 1961 '142 ’ s2 82 306 53 1962 ' 162 ' 74. 65 301 46 _a_l The wheat equivalent of flour was calculated and included by asst-lug an extraction race of 72 percent. 8003088: Domestic production from sources indicated in Table 111-1. _ Imports calculated from date of USDA Foreign Agricultural Service: Colombian Agriculture (rogers: 0.8. Embassy, July 1962 mimec.), pp. 26-27, and from 1961-62 worksheet data provided by Institute lhcional de.Abasrecildenros. 62 Area Harvested and Yields The number or hectares of wheat harvested each year is somewhat in doubt, but both the Gaga Mrl aria and 111i agree that there has been a significant decrease since the mid-1950's (Table III-l) . Increasing cmpetition from other enterprises round in cool climate regions, at A elevations between 2000 and 3000 meters, have apparently been important tactorsy‘in reducing the area planted to uheat. Barley, corn, potatoes, pasture for dairy, and some vegetables are all important competitors for land capable-o: growing wheat. . . Especially significant in this respect are the barley development programs carried out by the Colombian breweries through Procebada. In spite or the-tact'that the area-planted-to barley'showed no clear sip oi" increasing during the 1950's and early 1960's (Table 111-3), the 100 percent increase in average yields 6: barley helped it to compete for quality wheat land. Improved- seed, technical assistance to barley growers, timely price policies, and improved marketing channels were factors in the enhanced competitive position or barley. Mechanized producers or cereals in the Sabansi, furthermore, have recently been double cropping barley: a practice that is almost impossible with wheat, ‘which requires a longer growing period. Unfortunately, there is little reliable aggregate data to show the relationship over time between the area of uheat and other serious competitors such as potatoes and pasture for dairy. The data gathered from the preliminary surveys in the Sabana indicated that the production of potatoes, vegetables and dairy had expanded during the PM few years. The utilisation of fertilisers and sprays for 63 Table 111-3. Darley area, production, yield and use of improved Proportion of Average area planted Tear Area Production yield ‘vith improved (hectares); (metric tons) (kilos) (p:::::t) 1950 43,910 50,470 1.149 p ' -- 1951 . 47,000 56,200 A 1,196 -- 1952 51,000 p 61,000 -1,196 -- 1953 62.900 79.000 ’ 1,255 -- 1954 ' 53.000 65,000 1,226 0.02 1955 43.000 52.000 1.209 2.0 1956 50.000 57.000 ‘ 1,140 20.0 1957 48.000 60,000 1,250 50.0 1958. 43.250 75.000 1,734 70.0 1959 60,500 115.000 1.900 90.0 1960 56.300 125.382 2.227 91.0 1961 48,140 4 99.390 2,064 95.0 1962 48.400 . 108,000 , 2.231 n.a. ‘—1 8003088: Letter of Aug. 30,1963 from Dr. Jorge Quintero of the Instituto Columbiano de Cereales, and unpublished data furnished earlier by the Asociacion para el romento del Cultivo de la Cebada. 6!. potatoes, and the availability of better quality dairy cattle and concentrates have also apparently improved these enterprises' competitive position vis-a-vis wheat. This is particularly true in the cool climate areas or Cundinamarca and Boyaca which supply the large urban mket in Bogota’. The more or less constant rate of domestic production of vheat has apparently been the product of gradually rising average yields and a downward adjustment in the area harvested. In. spite of improved yields, the average production of wheatehas'omly been'around one metric ton per hectare (15‘bushels per acre) in recent years (Table 111-1). . Organisations Dealing with Wheat Production In 1962 the Estituto de Cereals: (1013) was initiated-as a sem- otticial organization, .partialJyLTinanced by private made. Functions of fizggebada, plus the corn and wheat development programs of the 9313 m were absorbed by .108. Extension activities, soil analysis, fertiliser recomendations, and barley seed registration are lCE's aain activities. ’ . K N ' ' Funds :or a .wheat deveiopnent program are to be furnished by the Instituto Nacional de Abastecirdentos (INA). This semi-public agency, tea-nod in 191.4,” is charged with helping in production, distribution, price stabilisation, and importation of basic food connodities. INA . handles all comercial and Titles 1 and iv imports or wheat. Goering calculated that ’ a mark-up on P1. 1.80 imports provided a large portion or M's revenue, ranging from 28' to 83 percent or its total expenditures during the 1957-60 periodeé ' ‘— 69g. gigs, (Thesis), p. 93. 65 INA acts as the middle man who buys, stores, and distributes a sizable portion of the wheat in Colombia. Through the use of imports and storage of some internal production, they are able to regulate internal. prices of wheat. However, in 1960-61 only 68 thousand metric tons of storage space was available in INA facilities-only enough to store 23 percent o: the total supply shown for 1961 in Table III-2.7 Only 5 percent or the internally produced wheat entered these ’ facilities in 1961, since this space was also shared with other crops such 'as'rice, potatoes and yuca. . The 933%,, handles most orthe credit, seed, and,£ertilizer used by wheat producers. In addition, the Caja also handles theOsale or some farm machinery.8 . . Price Relationships and Areas of Production From 1952 to 1962 the upward movements in prices for wheat, ‘ barley, and potatoes were more or less proportional, while corn prices . increased more rapidly (TabchII-h). A large increase in barley prices can be noted after 1955, and in corn prices after 1960. The recent Jump in corn prices is one cXplanation for continued. production or this crop in cool climateswhere Acorn takes almost hair " ‘ 7Instituto Nacional de Abastecimientos , Infome del Gerente- g Senor Presidents de la R dblica a los Mierbros de la Junta- W ngota: Litograi’ Colombia, .1 , p. 105. 8For additional information cum and the CaJa see Goering, 22o ate (Wheat W3), ppe 32-36e - Table III-6. Average prices received by Colombian producers for wheat, barley, potatoes, and corn, 1952-62 Tear Wheat Barley Potatoes Corn (pesos per metric ton) 1952 630 " 410 . - 212 205 1953 2' ' 630 “ 390', 278 w 240' 1954 . 710 ’ 380 319 330 1955 650 . 400~ 211 300 1956 680 '- ' 425 ' 312 350 ' 1957 760 . . 480 311 430 1958 870 ' 580 . 370 385 1959 940 ' 630 304 450 1960 880 624 350 474 - 1961 975 ‘ 637 504 629. 1962 963 630 303 - 638 (percentage increase) Increase from 1952-53 to 1961-62 54 59 ~ 65 186 8008088: 8anco de la Republics, Departmmento de Investigaciones ‘ Iconemicas: unpublished data. ' Institute hacienal de.Abastecimientos, Dcpartamente de Investigationes 8condmicas: unpublished data. 67 again as much time to mature as in warmer areas. Prices for wheat are uniform on a national basis, although prices received by farmers may vary widely depending on general quality, moisture content and impurities. This is also true of barley. Prices of vegetables, potatoes, corn, and dairy products, on the other hand, 'varywidelyamongprincipal areasofprodnction. Onthebasis ofthis price structure, one would expect the Sabana around Bogota to tend toward specialization in bulky products like potatoes, vegetables and milk, while other regions with a disadvantage, transportation-wise, would tend toward production of wheat and barley. Only a slight hint of this trend is shown in Table III-5 by the increased wheat production in sarino. If data were available they would likely show that production of potatoes and dairy for comercial sale was relatively less important in rennte Nariho than in Boyacé and Cundinamarca. Over the past few years one-third of the wheat has been produced in Boyaca, one-third in the Sabana of Cundinamarca, and one-third in Narifio and other high mountain areas. host or the production comes in the secondhalfoftheyear. Twocrops ayeararegrowninsomeareas of Narifio, the Santanders and Boyaca (in 1962). The climate in these areeeisceeltocold, andkillingfrostsarenotuncemenatthe ' higher altitudes in several months of the year. Boil characteristics and topographical features vary greatly between wheat producing areas. In general the land in the flat fertile Sabana is quite acidic but responds well to applications of calcilim phosphate. Wheat is also grown on farm units around theedge of the Sabanaonlandwhichisless fertile andmorebroken. Crops inthe' 68 Table III-5. Wheat production in primary producing areas of Colombia, by semesters, 1955-62 2.... 3‘3“.“33‘3‘3‘ 1.3:?‘324 1.3“?“ "“1 (thousand metric tons) 1955 58 54 '5 20 8 21 ' 166 1956 i 56 50 6 23 7 18 160 1957 45 50 7 ' 30 ' 6 19 157 1958 35 40 6 24 6 18 129 1959' 43 34 7 28 5' ’14, 131 1960 52 47 9 ' 21 5 11 145 1961 29 55 12 30 3 13 142 1962 472/ 65 - 7 23 4 16 162 _a,/ Includes 5,000 metric tons of first semester production. 800808: 0npublished data furnished by the Institute lacional ' de .Abastecinientos. ‘ 69 wheat areas of Boyaca’ are located mainly on land which is rolling to rough and often eroded, although some narrow valleys also supply fairly flat land for wheat and barley production.9 Land planted to cereals in Nariiio is even more broken than in Boyacai, but some areas near Paste are level enough for mechanized harvesting.1° Ecperiments have been carried out since 1955 to develop a warm climate wheat, which could be used. in rotation with rice in Valle, Tennis and Huila. The fiederacidn liarczlonrgli dc Arrocercg and the Instituto de Fomento Algodonero (IPA) have both grown wheat on experimental farms. Gearing calculated'that up to 25 thousand hectares of rice land might be employed in a rotation with wheat‘if proper varieties can be develOped.n Even if satisfactory varieties are developed, it is uncertain that wheat can compete econondcally with other crops which might be rotated with rice. . ’ Characteristics of Producing Units The social and economic compositions of farm units in the cool climate area are important factors in determining wheat output. Unlike wheat production in the United States and Canada, much of Colombia's wheat is produced on small to medium-sized diversified units. 9300 Orlando Fals Borda, EQ- Hombre 1 la Tierra on B ce’n Bases gocio-Flistoricas Para una Refoma Agaria (Bogota: Antares, 1957), for additional background on Boyaca’. J'OSce Ignacio Rodriguez Guerrero, Geoeragg Econémica de Marine: is Indprtrin Agricola Tome n (Pesto: Editorial Sur Colombians, ls l) for additional background on Narino. like $1,, (Wheat Production), ppe15‘18e - 70 Some larger, mechanized units are found in the Sabana, and in parts of Boyacai, but a large portion of the wheat is planted and harvested by hand. In 1958, it was calculated that only 31. percent of Colombia's wheat promotion was mechanized—some 56 percent of the wheat produced in Gundinanarca, 3L. percent in Boyaca, and only 2!. percent in ' hex-lap.” Oxen and the hoe are widely used on smaller units where lend may be too steep for mechanization. fiize andmes In mindinannrca almost 1.0 percent ,of the wheat grown is on farm unitsof less than 10 hectares (Table III-6). About 50 percent‘of the area planted, furthermore, is a lots of‘no-larger than 5 hectares. The averageersa plantedtowheat per farmwas onlyalittle over2 hectares. Taking into consideration the generally smaller units. in Boyacd and Narino it is likely that average wheat plantings per farm ' for the nation are only between 1.5 and 2 hectares. . A rough summary of mnicipio data from the 1960 Census suggests that the principal wheat-producing areas include some 250 thousand ferns, or about one-fifth of the total for the country. The farm area . included is a analler proportion of the country total since tam units ' tre generally larger outside the wheat producing areas. is can be noted in Table III-7r, farms of all sizes in both llarino and We carry a fairly even balance between livestock tend crops. The farms in Marine, however, generally have k 1:Anibal. Torres, Estimacion do las Areas Medan! gadas en Colombia 11 18(305 ota: Instituto do Investiga clones Tecnologicas, November, 1959,p.5:anddatasupplicdbythecaJaAgres-ia. .. table III-6. Area of wheat on farms in Cundinamarce, by size of farm with wheat, and by size of planting ‘ terms with Area of wheat Percentage - Sise c1ses wheat distribution of Total . Per fern total wheataree - (hectares) (number) (hectares) (percent) 812! or FARM less than 1.0 2,636 1,010 0.4 3 1.0 - 409 7.152 6.709 0e9 19 5.0 ’ 9e9 3.251 5.918 1.8 17 10.0 - 19.9 1,643 4,792 2.9 14 20.0 - 49 .9 1,036» 5,445 5.3 16 50.0 - 99.9 309 3,591 11.6 10’ 100.0 . 199.9 161 ' 3,664 22.7 11 1,000.0 or more 7 421 60.1 1 All terms 16,295 34,864 2.1 100 812! 0! PLANTING . ~ less than 1.0 8,942 4,555 0.5 '13 1.0 - 1.9 3,854 5,760 1.5 16 2.0 - 4.9 2,248 6,932 3.1 20 5.0 - 9.9 789 5,251 6.7 15 10 .0 - 49.9 412 , 8,300 20.1 24 50.0 or more 50 4,066 81.3 12 300361: Depertamsnto Administrative Nacional ds lstadistics: Directorie Nscionsl de Explotsciones Agropecuaries, 1960, Vol. I. Cundinenerce (logoti:1962), pp. 82 end 87. 72 table III-7. Percentage distribution of crop and livestock enterprise unitd on 248 preliminary survey farms in Karine and.Cundinmnarca, by size of farm Area and terms Crops ' Live- size Wheat Barley Potatoes Corn Other Total stock _ Irlilzs-PUPIALIS (no.) 4 (percent of all enterprise units) . suteletenceE/ 42 14 s 15 10 10 57 43 Commercial: - . ' 0.5 to 5.0 has. 23. 19 9 . 29 M 10 5. 72 28 5.1 to 10.0 " . 29 19 16 ' v 29 11 4 79 21 10.1 to 50.0 n . 30 20 '21 ‘ ' 19 s 4 . 72 . 28 50.1 hae.or more 21 . 35 20 111 5 l 72 28 A11 fauna 145 30 .19 15 6 2 72 .28 SAIAHA . ' suteleeenoehl 7 11 0 . 3 _ 22 1 31‘ 63 Commercial: , ' 2.0 to 10.0.has. 24 l3~ 9 23 . 3 l 49 51 10.1 to 50.0 " .30 18 10 ‘ 16 3 1 as 52 50.1 to 100.0 " 17 15‘ 33 13 g] g/ 61 39 100.1 to 200.0 " ’ 13 19 1s "18 3 1 56 44 200.1 or more " 12 ~'18 . 12' 8 1 1 40 60 All teams 103 17 15 ' 12 1 - 1 46 54 3] One enterprise unit was assigned to each hectare of crops, to each cow, and to equivalent numbers of other productive livestock. 2! terns were classified in the subsistence group uhen.unre than half of their agricultural activity appeared to be devoted to production for home use. .5] Less than 0.5 percent. 73 proportionately less livestock. It is interesting to note that livestock production was important even on small subsistence farms in the Ipiales-Pupiales and Sabana samples. Marv of these small units pasture one or two cows along fence lines, on roadsides, or on other public pastures. In Narifio, the percentage of the enterprise units made up by wheat increased with the size of the farms, while in the Sabana only the smallest farms had less than 15-19 percent of their enterprise units in wheat.” the higher proportion of livestock units found in the Sabana is an indication of the large 'amount of dairy farming devleping there to supply the Bogota’ market. ’ '. Almostellofthe' smalltomedium-sizedfarmsvisitedinthe wheat areas had some other crops such as corn, potatoes, and beans, which were gown primarily for home consumption. ' Data in Table III-8 show the classification of the commercial farms in Karine and Cundinamarca on the basis of types. Only one-quarter of the units were classified as being specialized, based on their 1962 Operating units. Maw of those listed as specialising inpotatoes andgainmightbe classified asminedcrOp farms if several years' production were considered; on nary farms potatoes follow cereals to take advantage of residual fertilizers. Furthermore, the Wty of potatoes, wheat, and barley often depends on price relationships. Over half of the farms visited were diversified units with both cattle and crops. J*3see footnote in Table 111-7 for definition of enterprise units. .‘V1 3:3. m E-E 7‘. Table 111-8. Classification of 199 commercial farms in prelinin ry survey, by type and size, Nari'no and Cundinamarcafi Specialized types Hired Crop and Area and ‘ ' __§ize Dairy Potato Grain crop livestock Tetals Irlhlrs-rurlhlss ‘ " ' _ 0.5 to 5.0 h... 1 . 1 5 6 10 23 5.1 to 10.0 n - 3 1 2 9 . 14 ' 29 10.1 to 50.0 n .5 . 1 3 5 16 30 50.1 to 100.0 " ‘1 0 '3 . 0 9 13 100.1 has. or nor. __9_ ‘_9__ __1__ _9_ __7_ ' ___s__ . total. 10 3 14 20 56 103 slum . 2.0 to ,5.0 h... 1 0 3 1 7 12 5.1 to 10.0 " 1 0 2 1 s 12 10.1 to 50.0 " I. 3 4 1 18 30 50.1 to 100.0 " 1 1 2 2 10 16 100.1 has. or nor. __2__ _¢_>_ __2_ _9__ 133' __2_e_ totals 9 a 13 5 65 96 g/ The classification by type was made by assigning one enterprise unit to each hectare of crops, to each cow, and to equivalent numbers of other productive livestock. terms were classified as diversified crop and livestock unlebs 80 percent of their enterprise units were within one oi the more specialised type clessi fications . 75 Mmroved Seed and Fertilizer Improved varieties of wheat have been available to producers in Colombia since 1952 through Joint research efforts of the Ministry of Agriculture and the Rockefeller Foundation. These new varieties have generally shown a marked increase in disease resistance and yields.“ . Unfortunately, the adaption of these varieties has been rather slow. The gaja Angie, which sells most of the improved wheat seed, estimated that only 30 percent of the total wheat plantings in 1963 were with improved seed.” ' host ofthe producers inwheat areas are familiarwithchemicsl- fertilisers, but application rates are generally low. All of the eleven case-study fans in Karine used chemical fertilizers, especially for potatoes but also. in some cases for wheat and barley.- Rates of use, however, were only one-quarter to one-half of those recommended. Only limited supplies of fertilizers have been I available in the past, but with bright prospects for domestic productinnofureaitislikelythatwheat producerswillbe ableand willingto apply more fertilizers.“ The advantages or doing so ' 1“See Gearing, 9p. 93.-P.» (Wheat Production), pp. 19—211, for further information on these improved varieties of seed. . 1511.3. de credite Agrario, Dept. de Investigaciones Economicas, 95m “Earle. No. 121. (Begota, November 1963). P. 2. 1609 until 1962-63, much of Colombia's comercial fertiliser was imported. Recently, the Infiistria Colcrbiana de Fortilisrntes has -, expanded its production of urea, and ech eta to produce over 200 thousand metric tons simually by 1965. This will probably provide for internal. needs of nitrogenous fertiliser. in the near future. (See ‘ newspaper article in 1_‘-].____ C 3,3 2.2:; .1111, August 2, 1963). 76 seem reasonably clear, in spite of the lack of emerimental data on marginal econondc responses. Farm Tony: e~- Relatively few of the wheat producing farms are strictly owner- . operated enterprises. For example, in the Marine prelidnary survey, 35 percent of the farm units had a-maJority of their land under other than direct owner operation. . Only 15 percent of the non-subsistence farmers interviewed had no special tenure arrangements with a hired manager, share-crepper, a relative, or renters. 1 farm unit composed of several parcels of land was studied in ' the Sabana as an example of the tangled tenure arrangements, and of the sharing of management decisions comaonly found in wheat areas. The principal producer, A, lives on a small tract of land owned by hie wife. a. is the owner of three other plots, in each of which he grows crops for his own account. In the first of these parcels, - he was also, engaged in growing wheat in compani’a with Producer 3 in 1962: inthe second, hewas engagedingrowingwheat incmafiia with Producer 0 and potatoes in germania with Producer D; and in the third parcel he grew potatoes in coman'i’a with Producer E. i As the land omer in these maniac Producer 1 provided a share. of the seed and fertilizers as wellmas the land: his commie provided labor, machinery, and the remainder of the variable inputs. Producer 8, moreover, was also a land owner, and had separate agricultural activities on his own land. In addition, Producer A grew crops in gonnafiia with two neighboring land owners (sisters) possessed of separate but 77 adjoining properties. On still another parcel of land owned by a different individual, Producer A was a comafier'o in growing potatoes. Finally, Producer A was involved in a cor—112.3119. for the operation of a tractor. In this comanfa, Producer A was the owner of the tractor, his comaficro was the Operator, and the two shared in the tractor 'irental income, which included charges billed to Producer 1 for the work on his own crops. A total of'nine different individuals, there- fore, participated .in the management decisions of these interlocking units. . complicated temre arrangements such as these are further evidence of the general lack of capital and credit in the agricultural sector, and 'are means of partially compensating for their absence. These arrangements are also indications of the pressure on the man-land ratio and the general difficulties of acquiring additional property _ to eccpand a farmunitpi The diversification of farm units and the distribution of production costs among several individuals are the principal methods used to lessen risks encountered in an uncertain market, and under variable climatic conditions. Representative Producing Units Farm units which are able to produce wheat can be classified into three different groups. They are: 'l. The very small unit, heavily oriented toward subsistence production, and typically growing potatoes, corn, beans, a few livestock products, and possibly some wheat or barley. Production decisions on these units are mainly motivated by consumption needs and are only faintly related to . market prices. Gian, the hoe, and family labor ‘ are used almost exclusively on, these units. 78 2. Small to medium-sized comercial units which are comitted to production of different conzaoditics for the market , but also produce a sizable portion of the foods consumed on the farm. A considerable amount of hired labor is often used on these units especially during harvest, although some mechanization ' is not uncommon. , .. 3. Larger commercial units which may have narrowed their combinations of ant orprises somewhat, but still include livestock and at least two or three main craps. Production on these farm units is almost exclusively oriented toward the market, ' producers are responsive to price changes within their ability, and mechanization is present but . incomplete. Owners of these larger units often have their interests divided between farm and non-farm interests. Motivations for operating the farm are ' froquently other than the maximization of net Operating incomes. ‘ lbree farms which are discussed below illustrate the adjustment possibilities and problems on farms within these groups. These three farms were among ll in Karine and 12 in the Sabana selected for " special study—largely on the basis Of the classification which . . appears in Table 111-8, plus sens consideration of tenure. Adjustment Possibilities on Farm § rarnsielocatedinthe’highnountainregionalcngthe Ecuadorian border. 11:. 68-year-old operator of Farm 3, and the 7 membersofhisfamily, liveinPupiales, atewnereonesthoueend' inhabitants. “here are several mall stores in the commity, but most of the marketing functions are performed in Ipiales—a city Of about 25 thousand inhabitants located at a distance or some 10 ' kilometers. 1 ' '~ The elevation of around 3,000 meters causes the climate to be coldsndrmv. KillingfrOstserenotunconmoninslmostawmonth of the year. ' 79 Paychelogically, the individuals have a religious, conservative attitude and are dominated by an Indian background. Poverty in this part of Nariho is as intense as in am other area in the country. The population pressure is so extreme here that wages for farm workers are at less than half of the level found in other major agricultural ' ‘ areas of Colombia. ‘ _ ' Farm 3 is .eonpoeed of but two hectares of land.” In 1962, half . .of this area'was in corn interplanted with a broad been called 939%.“ the remainder was in potatoes, and small plot of. onions, garlic, and cabbage. Thousands of other small farm units in Narifio, Cundinamarca and the Sabana have almost identical crepping‘ patterns. crops are often rotated between lots, but almost the same mix of opted-prices is found year after year. Many farms similar to 3 would also have one or two head of cattle. ‘ AlloftheworkonFarmSis donebyhand, andonlya small amount of hired labor is used, mainly during potato harvests. All crops receive a limited amount of commercial fertilizer, and potatoes are regularly sprayed with insecticides. ’Native varieties of corn, beans, and potatoes are planted, in spite of the availability of improved, higher yielding varieties of. corn and potatoes. In 1962, the torn produced 1,000 to 2,000 pesos worth of home- I construed products, and some 1,000 pesos worth of commodities that were ‘ marketed. In addition, the operator earned 1,000 pesos selling 17ihe Caja Agraria calculated that there were about 2883 farm unite in the municipio of Pupiales. Over 65 percent were of less than 5 hectares, 21. percent were between 5 and 20 hectares, and only 11 ercent of the units were larger than 20 hectares. (Interview, pieles office or CaJe Agrarie, July 5. 1963.) - _ 80 newspapers and w and a daughter earned about 1,000 pesos from sewing. lbtal earnings for the famly in 1962 were between 1. and 5 thousand pesos. ‘ Low yields from the native varieties, the constant threat of frosts, the lack of moisture at planting time, and extreme price ”variability are major problems. The projection, by large Operators, of present prices to make cropping decisions, the lack of storage facilities, and crop failures, cause wide swings in product prices. As an example .of this, the first 1962 crop of potatoes in Nariho sold for about 330 pesos per metric ton; the second crop sold for about half this price, and the price Just before the first crop was harvested in 1963 was upto 660 pesos per ton. Similar price swings, to a lesser degree, are also echelon for corn. Such variations in price make subsistence producers very cautious about abandoning l.’ production for home consumption, and about relying mainly upon one crap ' for sale in an uncertain market. Alternative plans for specializing in the production of wheat, barley, and corn were discussed with Operator 8. Even though wheat or barley production would increase his real income, on the average, he was strong]: Opposed to changing his present stepping program, ; primarily because of the uncertainties involved. An alternative plan. which would simply replace his present native variety corn with an improved variety interested him most. 59.1. uflent Possibilities on Farm M . is barelreaobv been noted in Table III-6, elnoet half of the wheatareainmmdinamarcawasonfarmunitswithatotsl'eiseofSto 81 50 hectares. This particular size range also included 23 .percent of all preliminary survey farms in Nariho and about 1.0 percent of those . in the Sabana (Table III-7). Fem M in Narifio illustrates characteristics of units within this group. Two parcels Of land with a total Of 23 hectares make up. the Operating unit. One 5-hectare lot is located about 10 kilometers from Pupiales, and can only be reached by traveling on horseback. The remaining 18 hectaresare 5—6 ldlometers from Pupiales, in the N opposite direction, on a trail sometimes passable by car. Six adults live on the larger lot, but the mother or the family lives in Pupiales in another home which she owns. Title to the larger lot is held by the mother, and the smaller lot is owned by the father. Like mam other units, Farm 11 is operated as a family unit. The labor force is made up or four adult sons, the father, and additional tenmorary workers. hired at planting time and at harvesting time. - ' Major decisions are made by the family as a whole, but day-today management is the responsibility of the second Oldest son who is designated here as the Operator. I no larger lot can be worked with a tractor, but it. has a slepe of 20 to 25 percent. The smallerlotis onlyworkedbyoxen. The ' quality Of the land inthe general area is not as high as that found '- in parts of the Sabana, or in the fertile valleys of Boyaca, but it has a high. capacity for responding to fertilizer applications. Benchmark Plan . . Some wheat, barley, corn, potatoes and dairy have been procblced onhrnulneeohorthepaetmyears. memo: enterpriseshas 82 been fairly constant over time, but there have been year-to-year changes reflecting rotation variation. Between 1962 and 1963, for , ~ exasple, the Operator reduced the area in potatoes from 4.5 hectares to 0.5, in response to low 1962 prices for potatoes in Merino. The 1 area in barley was also reduced from six hectares to four, and corn 1 increased from four to seven hectares as part of the normal rotation. ’ Five hectares of wheat and eight hectares of pasture were grown in 1962 and 1963. . _ I Five milk cows, 12 head of young stock, 13 work animals, 5 sheep, 2 pigs, and 30 chickens represented the farm's livestock. The ' previously mentioned pasture, land lying idle between crops,‘and a little rented pasture furnished the forage for the livestock. Some low quality barley and wheat was fed to the chickens. ’ A physical emery of the Benchmark Plan, based largely on the 1962 and 1963 Operations, can be found in Table III-9. The financial summary can be found in Table III-10. Using 1961-62 prices, the net income from the Benchmark Plan would be 7,}00 peace. The value of home-grown foods consumed by the family is estimated at about h,800 pesos: therefore, farm earnings amount toa little over-12,000 peace, or about 280 dollars each for the five full-time male family workers .13 Since the mrket value of the land on this farm is between 3,000 and - 5,000 pesos per hectare, and since interest rates for a fans mortgage loan would be at least 10 percent, one might easily impute most of the farm's net earnings to a return on the capital investment in land. h— ‘ 18This is calculated. by‘using an exchange rate Of 8.5 pesos per dollar. ‘ ' ' _ . Table 111-9. Land use, crop yields, and livestock progran.under four alternative plans for Farm M- Ite- Benchmark Plan 11 Plan 111 Plan IV ' Plan v Plan . ' (hectares) LAND US! Potatoes ~ 4, p 1. ‘1. l 1 Corn 4 62! - ' - 13 4:, Barley 3 21 - ' - Wheat ‘ 5 - . ‘ 13 - _ S. Rotation ' ' V pasture 5 S 5 S 5 Permanent ‘ ' pasture 3 3 3 3 3 CROP‘YIILDS (kilos per hectare)'. Potatoes 3.000 3.000 ‘ 3,000 3.000 3.000 Corn 1 1,000 - - 2,500 2,000‘ Barley 1,000 2,000 - - 2,000 Wheat 1,000 - 1,300 , - 2,000 LIVESTOCK ON [AND . (numbers) Milk cows " 5 s ' s s 5 Young cattle 12 12 12 12 ' . 12 sheep. I s - s ' r s '21:. 2 2 2 2 ‘ 2 Chickens ' 30 ' so 30 30 so . 'flork ens-.1. 13 13 13. 13' 13 1111.3 IRODUC‘HON ‘ (kilos per year) 2:8.00H 1,640 1,640 1,915 1,915 - 1,640 - ‘3! Interplanted with habas, beans and squash. U .a- Table 111-10. Coaparative financial summary for five alternative plans for Parts M, at 1961-62 prices m IARRINGS 1“. Benchmark Plan 11‘ Plan 111, Plan IV Plan V Plan (barley) (wheat) (corn) (diversified) (pesos) ~ ' RECEIPTS _ Potatoes 1,220 -- ' -- -- ~- Corn ' 330 e- . -- 11,030 1,230 Barley . - 1,230 1 24.270 -- -- ’ 7,330 "b“: 3.650 . -- 17.470 '1- 7,800 Milk 3,250 3,250 3,940 3,940 3,250 Cattle 2,000 2,000 2,000 2,000 ' 2,000 Pigs 900 900 900 900 900 Workstock 400 400. 400 400 400 Reel 30 3O 30 30 30 totals 13,060 30,850 24,740 A 18,300 23,440 nrmsss ; y ' Labor 2,070 2,400 2,090 800 . 2,080 teed 740 ' 1,970 1,710 600 1,510 Pertiliaer . & sprays 810 . 5,380 3,330 2,850 2,960 Feeder p13. ‘ 100 ' 100 100 100 100 Pasture rental 150 150 — -- -- 150 Hechinery . ’ . rental 1,000 1,200 800 500 1,000 taxes 120 120 120 120 120 interest on loans 310 400 280 200 310 transport‘ 5. Disc. 31‘0 egg 810 260 660 totals ‘5,610 12,530 9,240 5,430 ,890 KB! INCOME 7,450 18,270 15,500 12,870 14,550 Kane-grown . , . food 4,840 3,040 1 3,200 .* 3,740_ 4,710 12,290 21,310 18,700 19,260 85 Problems and Possibilities It is almost impossible for farm operators to purchase additional land in much of Narifio. Population pressure on the land resources has pushed land values up and caused excessive parcelization of family holdings among heirs. Tight credit conditions also make it w ' difficult to obtain capital for purchases of additional land. It would thus be .very unlikely that the owners of-Parm M could add to their land holdings. ‘ . 4 The uncertain mrket conditions, mentioned previously, (and general climatic conditions are limiting factors in Fans M9 s operation. In this part of Marine, crops are subject to killing frosts in almost amr month of the year. Farmers adjust to this threat by planting soon after heavy frost periods which occur in December and January, and also (baring June and July. Furthermore, they adjust plantings of different crops to fields which are subject to frosts in varying degrees. Rainfall is generally well distributed for cultivation, but time is occasionally lo st waiting for sufficient rainfall to plant crops. This lost time may cause producers to have trouble in getting craps matured before a period of heavy frost. Wages for farm labor are only about half the country' s average, but Karine has a serious cost disadvantage with respect to trans- . portation because of the distance to the principal pOpulation centers of Cali, Bogota’ and Medellin. Prices of bulky products such as potatoes and milk are therefore considerably lower in Marine, while prices of'wheat and barley, as mentioned previously, have uniform national prices. Comercial farm operators must balance the use of cheap labor in prochlcing intensive;of‘ten bulky crops, with the . 86 associated disadvantage in product prices, against the less labor intensive but more favorably priced cereals. There is little doubt that better results could be obtained on Farm 11 if ”contended fertilizer rates, weed sprays, and improved seeds were used. This is especially true in the corn and potato enterprises. - Another promising alternative would be to narrow the combination of crop enterprises. In light of these possibilities, several alternative plans which would modify the present farm organisation are discussed below. ‘ ' ' ' 1 Plan 11 More emphasis on barley production, along with use of more fertilizers and weed sprays, represent the principal changes of this plan. A total of 13 hectares of barley would be planted in the first semester, and 8 hectares in the second. Potatoproduction would be limited to one-half hectare which would be double cropped and used mainly for family consumption (Table 111—9) . No change would be made in the livestock enterprises. The Operator of Farm M is presently using improved varieties of barley, and this practice would be continued. Fertilization rates would be increased to the recommended level of 200 kilograms per hectare, and all barley fields would be sprayed for weeds. With these I improved practices , barley production should rise to about 2’ metric tons per hectare. Plan 111 In‘this plan emphasis would be placed‘on production of wheat under-improved practices. ‘ Since wheat requires 6 months to mature in Berlin, and barley only 4P5 months, only one crop of wheat would be 8? grown. The operator of I! had had favorable eagoerionces with wheat production, and was giving thought to trying a second crop on some fields. The ability of Operator M to do this without incurring high losses from frost on the second crap is unknown. Eacperimental data on frost losses are unavailable, and it remains to be seen if a second crop of wheat can be profitably raised at these higher altitudes around Ipiales. As can be noted in Table III-5, over one- quarter of Narifiols wheat is harvested in the first semester, but most of this is at lower altitudes than Farm 14. . operator :1 is presently using improved varieties of wheat. With the application cf appropriate fertilizer at the rate of 200 ' kilograms, and with the proper use of weed killers, a yield of 1.8 metric tons per hectare (27 bushels per acre) could reasonably be expected (Table III-10) . With some additional forage available from the uncropped wheat land in the second semester, milk production would "be connectedtoriseby275 kilograms per cow. ' ' Plan IV ' , nnphasis in this plan would be placed on corn production with improved rather than native varieties.’ Thirteen hectares of corn . would be planted and the recomended rates of 200 kilograms of mixed fertiliser would be used (Table III-9). corn in Nariflo takes 10 months to mature; therefore, only. one crop would be possible. Yields could reasonably be. expected to rise to 2.5 metric tons per hectare, providing the operator followed the above practices. . fl 88 Plan V In this plan a reduction would be made in the area devoted to potatoes and corn, and an increase would be made in the area in barley over that of the Benchmark Plan. The operation, would remain widely diversified, but an increase in fertilization rates and the application of other recomended practices would boost most crap yields. as in the Benchmark Plan, the corn would be interplanted with subsistence crops, a practice which would result in a lower average yield than that shown for Plan IV (Table III-9). Part of theland devoted to barley and potatoes would be double crepped; other land . would be pastured between crops. ~ The crepping sequence would provide a’ year's pasture between wheat and. barley to avoid the problem of a mixed seeding as a consequence of shattered grain. Evaluation of Alternative Plans 7 Because the production of food for home consumption varies significantly between plans, the value of this is added to net income estimates to provide a better base of comparison (Table III-ll). ~ is can be noted in Table III-ll, Plan 11 with emphasis on barley shows the highest net earnings under 1961-62 ' prices, while Plan - Iv with emphasis on corn shows the latest net earnings except for the Benchmrk Plan. The net earnings for the diversified Plan V were about 2,000 pesos less than the barley plan but the cperator seemed to feel that Plan V was'the most feasible. He admitted that he did not realize there were better corn varieties available, and agreed with the results in Table III-ll which show that' corn is at a comparative disadvantage in. the area. He rejected the idea of. specialising in Table III-ll. Estimated net earnings from five plans for Perm H, calculated under alternative price situations related to levels of P.L. 480 programs Price Benchmark Plan 11' Plan 111 Plan IV Plan V eituetionsfil ‘ Plan (barley) (wheat) (corn) (diversified) (net incomes in peace of'1961-62) 1961-62 12.290 ' 21,310 18,700 ‘16,610 19,260 1967-68 - 1 ,12,330 21,270 18,660 17,330 19,550 -'11 13.900 25.090 21.410 19.120 12.720 17.4oo 14.920 17,170 16,440 - 111 10,250 3] See Chapter 1, p. 9. 90 potatoes or dairy because of the uncertain marketing conditions and the high capital requirements. Family M was unwilling to enter the market to buy either their ' corn or potatoes. They had vivid memries of. how expensive these items often became Just before harvest time. Less corn would probably be ‘ produced in cool climate areas by small to medium-sized units if individuals had more confidence in a relatively stable price for corn. Under the alternative price assumptions for the 1967-68 period (Tables I-1 and 1-2), net earnings under the various plans would vary appreciably, although Plan II would return the highest net earnings in each case (Table III-ll). The differences between the net earnings ofPlans IIanqunder various levels of Title Iimportswould not be.- very great. With a rise of 10 to 15 percent in the relative price of wheat and barley, as might be expected to follow a complete cessation of Title I imports, the operator would give serious consideration. to increasing wheat and barley production. Expanded use of fertilizers and weed killers could also be expected. . Farmers such as eperator M generally [are slow to respond to price changes. They are often interested, furthermore, in miniMzing the risk of loss rather than in maldmizing a long-run average income. This leads them to avoid specializing in one crop or enterprise. The disutility of a loss is far greater than the utility of a Similarly sized gain for many of these small to medium-size wheat- Producers. I . One may conclude that Parmh will beslow to change the amount of sea devoted to wheat production. Without am change in area planted, hwover, wheat production could almost double as ' a result of 91 increased use of fertilizers and other recommended practices. Adjustr‘ent Possibilities on Ferret; . The 1960 Census of Agriculture showed that about one-third of the wheat grown in Omdinamsrca was on farms with” a total sizebf over 50 , hectares (Table III-6). Wheat producing units of this size are not as prevalent in otherarcas, but . it is likely that to to 50 percent of the country's wheat is grown on these larger'units, since their yields are generally above the national average. A 160-hectare farm near the town of Subachoque, Oundinamarca, illustrates the adjustments possible on farms in this large-size group. The unit is located about 10 kilometers from Subachoque by rough road, and at 25 to 30 kilometers from a paved road which leads to Bogota’. Most of the products of the farm are sold in Bogota, which is about two hours away by truck. ' ' . Benchmark Plan In 1962-63 the farm was divided into three closely grouped lots of 13, 19, and 128 hectares. The preperty’ is owned and operated by the SO-year-old producer, but he does not have clear title to all of the land. In spite of the fact that neither the producer nor his wife is able to read or write, all nine of their children have completed at least primary education. one 18 -year-old son lives on the farm and assists in the operation. The labor force is made up of the father, his son, four full-time workers and an average of seven occasional workers who help with Planting, weeding, and harvesting. Occasional workers received 6-8 POoos per day in December 1962, but after the devaluation, these wages 92 rose to lO-ll pesos per day by July 1963. A new-tractor purchased in 1962, plus some oxen, help in the land preparation. In almost all of the past 10 years, the production of some wheat, barley, potatoes, and milk have made up the Operations of Farm L. During the past 5 years, potato and am: production have increased relative to the cereals. In 1962' the farm enterprises included 19 hectares’of barley, 6h hectares of wheat, 61. hectares of potatoes, and 70 head of cattle, of Which about 35 were being milked (Table III-12). The cows are grades and produce only some 11.00 ldlograms of milk per head per year. About five hectares of wet or rough land ' were used as pasture; additional forage was furnished by 32 hectares of rotation pasture and by wheat and barley stubble. A small lot of corn for home consumption was grown in 1962. l ' Several of the crap yields on Farm L were higher than those for. Farms 8 and H in Narifio. In general, mixed fertilizers were being dpplied at close to recommended rates, on soils which were ‘quite acidic. Improved varieties were. also regularly planted. Almost all of the land could be worked witha tractor. Some flooding in certain parts of the farm occasionally washed out crops. Problems and Possibilities ( The occurrence of very'heavy frost in the Sabana in December and January makes it almost: impossible to double-crop wheat in the area. It is possible, however, to grow two crops of barley because of its shorter growing period. 'This is especially true for producers who are able to harvest their cereals mechanically. 19 ”Brewery-owned pment stations furnish machinery for planting and harvesting barley the Sabana and Boyaca. ' _| 93 Table III-12. Land use, crop yields, and livestock program under six alternative plans for Par- L Item Penchmark Plan 11 Plan III Plan IV Plan V Plan VI Plan (hectares) LAND USE Potatoes 3 64 -- -l -- -- 100 corn _ . 1 -- -- 110 -- -- Parley l9 ' . 192 -- -. -- _ -- - 50 wheat 64 —- . lzs -- 32 - so. notation . pasture 32 . 32 . 32 50 128 60 Permanent _ pasture 5. 5‘ 5 . 5 S 5 CROP YIELD: . (kilos per hectare) Potatoes 10,000 -- . -- , -- -- 19,000 Corn ' al.000 ' -- -- 2,000 -- -- earlcy ’ 1,300 1,800 ' -- -4- “ -- 1.300 wheat ‘ 1.500 -- 1.500 -- 1.500 1,500 LIVESTOCK ON HAND (numbers) Milk core 35 ' 35 35 35 132 35 Young cattle 7 so 30 30 30 , 225 30 Inlle J 3 3 . 3 .3 -- 3‘ sheep 12' 12 _ ' 12 12 12 12 ‘ Chickene e . s . s s s s Intros 2 2 2 2 2 ‘ HILK PRODUCTION . (kilos per year) meow 1,400 1,400 1,400 1.400 2.500 1,400 91+ In addition to the previously mentioned problems with occasional flooding, rains often rake access roads into the farm impassable for several days and make milk pick-up difficult. ' The proximity of Farm L to the large market in Bogota’ offers an V Opportunity to produce bulky commodities such as potatoes and milk for Is rapidly expanding market, especially with improvements in the local roads. A number of farm units in the Sabana are expanding their 4 dairy production, and artificial insemination service is available for upgrading the quality of the cattle, but Producer I. preferred crop production to dairy. . ‘ Some increase in rates of fertilization and a narrowing of the combination of crop and animal enterprises appear to be possible alternatives on Farm 1.. The following five plans test the economic feasibility of undertaking these adjustments on Farm L. 2 Plan II under Plan II, a total of 192 hectares would be planted to barley, includinngB hectares in the first semester and 61+ in the second (Table 111-12). The practice of using 32 hectares for rotation pasture each year would be continued. No change in the livestock operation is assumed in this plan, and crop stubble would ‘ continue to be an important- source of forage. n.a-m The emphasis inthisplanwouldbe onproducingwheat rather than barley. A total of 128 hectares would be planted once each year, and the stubble would be used for pasture during the rest of the year. As in. Plan II, no change is assumed in the-livestock operations. 95 Plan IV Plan IV proposes to grow an improved variety of corn on 110 hectares of land. Less land could be cropped in this plan than under Plans II and III, because of the longer growing period needed for corn, and the forage requirements for the livestock. The net ' earnings for this plan, shown in Table III-1.3, bear out the producerl s feeling that corn production does not pay on Sabana land costing around 8,500-9,000 pesos per hectare. i V . Plan V In Plan V, Farm L would switch to intensive dairy production, with wheat used only as s cm to rotate with pastures. The milking herd would be increased to 132 cows, plus the necessary young stock for replacements. In addition, some of the steers would be kept until they were 2 to 2. 5 years of age before being sold. An additional ' _ investment of about 25,000 pesos would be necessary in this plan. tip-breeding and additional forage could raise average production per cow to 2,500 kilograms. Additional production could be expected if concentrates were fed, and if calves were allowed less milk and more concentrates. The expected income for this plan after a period of readjustment is shown in Table III-1?. ' Plan VI A. diversified organization with more emphasis on potato production would compose Plan VI. A total of 100 hectares of potatoes would be planted, fifty in each'semester. . Fifty hectares each of charley and wheat plus 60 hectares of rotation pasture would be used to follow potato production in order to utilise residual fertiliser Comparative financial summary for six alternative plans for Farm L, at 1961-62 prices Inbl. III ’13 e Benchmark Plan 11 Plan 111 Plan IV Plan V Plan VI" ltenr Plan (barley) (wheat) (corn) (dairy) (diversi- ' fied) (pesos) ' mun-s r...r... 190,800 -- ' -- -- -- 299,000 Corn .. - . -- -- '-- 125,300 -- -- Barley 20,400' 207,200 -- -- -- . ‘ 53,800 Wheat 79,700 -- 159,200 -- 39,600 62,200 Milk 31,900 31,900 . 31,900 31,900 -217,800 31,900 Cattle 8,800 8,800 3,300 s,s00 59,000 8,800 Totals 331,600 247,900. 199,900 166,000 316,400 455,700 rxrrnsns ‘ ' . Labor 46,500 25,800 . 20,400 23,500 31,900 64,700 , Seed 24,400 19,000 20,300 3,300 6,100 52,300 Fertiliser 51,000 36,500 24,300 20,900 18,800 32,200 Spray materials (5,300 1,900 1,300 1,100 300 8,000 Hiscellaneous I dairy exp. 600 600 600 600 21,700 600 Gas and 611 2,900 3,800 ’ 2,600 2,200 600 4,000 Upkeep‘ 5,000 5,000 (5,000 5.000 7.500 5,000 Taxes 800_ 800 800 800 800 800 Fences 1,000 1,000 1,000 1,000 2,000 1,000 Transport 6,200 2,700 1,500 1,800 400 9,300 Interest 8,000 7,200 4,000 1,600 26,000 6,400 Totals 140,300 127,100 94,500 31,800 . 119,300 195,200 . arr IHCONB 191,300 120,800‘ 105,400 104,200 192,100 260,500 lone-grown food 2,500 1,300 1,300 1,200 1,300 2,500 193,800 122,100 106,700 105,400 ‘193,400 263,000 RE! EARNINGS 97 I (Table III-12). NO change would be made in the livestock Operation under this plan. Evaluation of Alternative Plans The plans emphasizing wheat and barley production (II and III) showed substantially lower net earnings than either the Bener Plan Or Plan VI. ‘ In addition, the Operator felt that specialization in wheat, barley, or potatoes would involve higher risks. As in Narino, the production. of corn proved to be relatively uneconomical. Operator 1. did not “care to expand his dairy production, but the income prospects shown in Plan V indicate that other producers in ' . the Sabana and Boyaca may have a real interest .in considering additional dairy production. Under the 1961-62 prices used to calculate Table III-13, the diversified Plan VI with. emphasis on potato production would return 4 the highest net earnings. This plan is the one which Operator I. felt was most promising for his farm. In addition to increasing potato production, the Operator felt he might try double crOpping barley since Other producers were successm in this practice in the Sabana. If the future price of wheat were to drop appreciably relative to the price of barley, Operator 1. would be ready to increase barley production at the expense of wheat. The potato crOp would likely _ continue as the principal enterprise, unless the prices of potatoes fell or fluctuated more. drastically than in the past. A continuation or suspension of the potato enterprise would likely favor wheat production, 811100 it is a more profitable crop to follow potatoes than is, barley. Variations in Title I imports are not likely to affect ' 98 Farm L's production much, as can be noted in Table III-lit. I-‘urthermre, the Opportunity for increasing yields does not appear as great on Farm 1. as on Farm )4. Adjustrmt Possibilities on OtheLFarms The reluctance of small farmers like Operator 3 to become fully dependent on the market place is common throughout the wheat producing regions. Thirty percent of the 11:5 preliminary survey fame in Narin'o fell into this (small farm group. With credit both expensive and difficult to Obtain, few small producers are willing to change their present crOpping patterns for some other more risky combination. is mentioned previously, the disutility of risking the loss of land hOldings is beyond economic measure to many producers. Even though a good deal of potential exists on small and medium- sized farms to improvemanagement practices and thus to increase - ' total production and net earnings, limited education, lack of . extension facilities, and incomplete channels of cominications Will retard these adjustments. Some 20 years ago, for example, a small farmer near ‘Ipiales was induced to plant a hectare Of alfalfa; since then, he has done no additional seeding or reseeding. None of the neighbors of this- farm have planted alfalfa. _' This producer, nevertheless, considers his alfalfa as his most important crop and would be very hesitant to. replace it. The alfalfa is sold to a neighboring farm, and returns a cash income which is an important supplement to the subsistence craps grown on the rest of the preperty. Another factor which limits change among these small farm units is the large number of old We and/or widows who are property . 99 Table III-14. lstimated net earnings from six plans for Farm L, calculated under alternative price situations related to levels of P.L. 480 programs Price Benchmark Plan 11 Plan III Plan IV Plan V Plan VI“ situations .a.] Plan _ (barley) (wheat) (corn) (dairy) (diversi- fied) ’ I-(net incomes in pesos 1961-62) 1961-62 193,800 122,100 106,700 105,600 198,400 263,000 1967-68 - I 184,200 122,100 106,700 118,000 198,400 248,000 - 11 212,800 153,200 138,600 130,500 206,400 283,600 - 111- 155,500. 91,000. 74,900 111,700 168,600 212,400 3.] See Chapter I, p. 9. ‘ 100 owners. Furthermore, even if most small wheat producers were to adapt improved seed and improved management practices, their additional contribution to total production would be small. Among the Narifio preliminary survey farms in the 5 to 50 hectare size group, half were diversified crop and livestock units like Farm 14, and the remainder were not very far removed from the same resource base and pattern of resource usage. or the six case- study farms in this group, all six grew some potatoes and corn in 1962 and 1963, and were thus. partially orientedxtoward production for home consumption. Inadequate application of fertilizers and other recommended practices resulted in yields for all crepe being well below those attainable. For example, none. or the six Operators obtained more than one metric ton of wheat per hectare in 1962; moreover, none or the six farmers in Narifio nor the four medium-sized case-study farms in the Sabana felt they could be sure of success in double cropping wheat. Increases in wheat production among this . group will likely occur only as more fertilizer, improved seed, and generally better management practices are used. There were six case-study am in the Sabana which included more than 50 hectares or land. One or these unitswas reduced in size to less than 50 hectares in early ‘1963 by the sale of land. A combination of grain production with a herd of dairy or dual purpose cattle was found on all of the remaining five large units. The _ production trend in this group seemed to be toward more dairy (see Farms K3 and G in Chapter V). In Nariho three Operators with'more than 50 hectares also had her. interest 1h develOping their dairy . enterprises than in expanding cereal production. ' - I’D tr 10]. Generally speaking, these large farms are better able to adjust to price changes than smaller units, but they have less potential for increasing production by better management techniques. Overall Prospects 0n farm units in the cool climate regions, wheat is under heavy conmetition, for a variety of reasons, from other enterprises such as barley, dairy, potatoes, and home consumption products. Any expansion in production of wheat within these units will likely result from a. wider. use Of better seed, additional fertilizer, and other improved practices. Ebcpanded extension programs or other methods Of disseminating information to the small. to medium-sized producers will be needed to induce nary Of these changes. Since there is considerable Opportunity to shift between wheat ., and barley production, and since breweries have a strong interest in maintaining only sufficient internal production of barley to meet brewery needs, it is unlikely that the price relationship between wheat and barley will. be altered much. It is therefore somewhat douth that as "of the alternative levels or Title I imports assumed in this analysis would bring about major changes between plantings of these two cereals. firthermore, it is unlikely that these changes in Title I imports would cause major adjustments between cereal plantings, on the one hand, and the use of land for corn, potatoes and pastures, on the other. Lough-run pressures for more dairy production in heavily populated, cool climate regions plus additional production of potatoes could continue to reduce the total area in cereals. ' ‘ ' 102 Aside from some favorable income impacts upon cereal producers, a reduction in wheat imports under Title I will have the largest impact upon consumers, through higher prices and short supplies. A mlmber of producers could be sccpectcd to rcSpond to a certain degree with more emphasis on increasing production of wheat by using more fertilizers, weed killers, and improved seed. 'ihe effects of these changes would only be gradual, however, since a continuing need to expand all types or agricultural output would exist. It may be possibleover a number'ofyears to expand the-area in wheatby developing a variety which can be rotated with warm climate ' crOps. Furthermore, it my be possible to draw more Operators of small and medium-sized units into. the market to buy corn for home consumption, thereby freeing some land for additional cereal production. Both of these possibilities will occur slowly if at all. CHAPTER IV FEED GRAIN PRODUCTIOH . The 1959 Title I agreement was the first to allow feed grain imports into Colombia. This included a total of 80 thousand metric tons Of corn or grain sorghum, but only 15 thousand tons of sorghum and 1.0 thousand tons Of 'corn were finally imported under this agreement in 1961. Late in 1961 INA applied for and received permission to import an additional 25 thousand tons under the 1959 agreement. Unfavorable producer reaction to the preposed imports resulted in the cancellation of this plan. Little or no importation of feed grains has occurred outside of those made under PL 480 in 1961.1 Trends in Production In terms of area planted and value of production corn ranks next to coffeein crOp importance (Table II-7), and is by far the most important source Of feed grain. As was noted in Chapter III, a substantial quantity of. barley is grown in Colombia, but its use as ~ feed grains is only incidental to its ruse in brewing. Grain sorghums have been a minor item in overall agricultural production, but appear to have a good deal Of future potential. . l'i'he Minister of Agriculture recently announced that additional imports of grain so: ghum in excess Of 10 thousand metric tons would be authorized according to a no rspaper report in El Ti_____e:p_o (Bogota) November 6,1963. 101» The production of corn in Colorbia has been very slow to increase, even though corn prices almost doubled between 1955-56 and 1961-62 (Table I-l) . Data with respect to corn production are by no means precise. The Caja and INA, for example, differ a good deal in their estimates of area and production (Table IV-l). The Caja data show no. clear trend either upward or downward over the 1950 to 1960 period, whereasthe INA data indicate that there any have been a rather sharp drop in both area and production since 1959. Both agencies agree that there has been some upward movement in the yield per hectare over the 1950-62 period. , . ' , c some evidence indicates that the trend shown by INA‘ is more nearly correct. .e For some time the production of craps such as cotton, cane for sugar, oil. crops, and in some cases pasture for intensive dairy, has apparently competed strongly for land in eomercial. corn production. This is especially true for cotton, whose plantings Jumped from 77 thousand hectares in 1958, to 131 thousand hectares in 1959, and to 177 thousand hectares in 1962 (m1. VI-l). such of this increase probably took place on land formerly planted to corn. In addition, there has likely been some movement of corn production onto less productive lands—a possible explanation for the drop in yields per hectare from 1959 to 1962 .' . noted in the INA data in nu. Iv-i. ‘ {Uses of Feed Grains Until recently relatively little feed grain has been fed to ‘ poultry and livestock in Colombia. The initiation of fixed feed production by several large. companies during the late 1950's, and 105 Table IV-l. Area, yield, and production of corn in Colombia, 1950-62 ‘1 ea r 533:: Production ' Yieldjer hectare Caja 121‘. Ca in INA Caja IXIA (thous.has.) (thous.metric tons) (metric tons) 1950. 652 --- 620 . -- 0.95 -- 1951 i 768 -- 845 -- 1.10 -- 1952 .. 844 -. ' 928 -- 1.10 --‘ 1953 , 700 , -- I 770 ’, e- 1.10 ' ' -- ' 1954 680 -- 750 -- ' 1.10 ’ --' 1955 660 830 770 736 * ' 1.20 0.88 1956 677 811 790 . 748 . 1.20 ’ 0.91 1957 513 624 I 746 718 1.45 '1.15 1958 704 693‘ 852 ' 832 « 1.21 1.20 ~ 1959 730 ’726 , 891 858 1.22 V 1.22 -1960 806 724 983 866 1.22 1.20 ’ 1961‘ 4- 711 -- 758 -- 1.06 1962 -- .697 -- 754 -- 1.08 SOURCE: Records of the Caja Agraria and the Instituto Nacional de Abastecimientos, as furnished in correspondence, in copies 1 of worksheets, and as published for 1958-60 by The Cajarde Credito Agrario, Industrial mnero in the Carts Agraria, Us. 8.0 (Bogota, Jhmary 1962;. 106 the rapid expansion in demand for poultry products, dairy products, and pork has changed this situation. In 1958 some 72.5 thousand metric tons of mixed feeds were produced; about 20 percent of this was for poultry, 70 percent for dairy, and 10 percent for other uses. By 1962 total mixed food production had more than tripled to 210 [thousand metric tons; 50 percent was used for poultry, 35 percent for dairy, and 15 percent for other uses.2 1 me big increase in mixed feeds and industrial uses, has reduced. the preportion of corn directly consumed by humans, but in 1962, INA still estimated that up to 50 percent of .the local production was directly consumed.3 Presently,r_most of the 30 commercial feed producers are centered near the large urban centers of Colombia. Purina de Colombia, for example, has a large plant in Cartagena, one near Cali, and is building another near Bogota. In 1962 INA estimated that 20 percent of, the corn crop, 150 thousand metric tons, was fed to livestock. Some 15-20 thousand tons of barley, unsuitable for brewing, and an additional 20-25 thousand tons of brewers' grains also went into livestock feed. In addition about 10 thousand tons of grain sorghum were also used. Thus, a total of about 200 thousand tons of feed grains , were available for comereial feed producers in 1962. Food processors have also come to use a sizable portion of Colombia's total corn production. Maizena's plant in the Cali area 2Data supplied by Dr. D. G. Pins C. , Director of the Feed Grains Council, Begota, August 20, .1963. 3Unpub11ehed data furnished by 1111. 107 has an annual capacity to process 32 thousand tons of corn into starch, dextrin, glucose, and other products. Other important users include Kellogg (cereals) and Bavaria (brewing). Maizena and Bavaria are both active in trying to stimulate production of corn in the Valle del Cauca. Development Programs The martsnento de Investigaciones ‘Agronscuarias (DIA) of the _ Ministry of Agriculture has 6 experiment farms in various parts of the country, which carry on corn variety improvement programs. 7 These farms in cordoba, Valle,- Nariho, Antioquia, Boyaca, and Cundinamarca include the major types of growing conditions found for corn in Colombia. Native varieties, in general, produce only about one, to one-and-a-half metric tons of corn per hectare. DIA researchers ~ report that outstanding comercial producers in the 'Sabana, using improved varieties, get yields of up to h and 5 metric tons per hectare, yet this is not the most favorable corn growing area.“ The use of these improved varieties of corn is, unfortunately, not very wide-spread. Since 1951., the Caja Agraria has distributed improved corn seed, but in 1960 only enough to plant a little over 1.5 thousand hectares was sold.5 In 1963 1111 personnel estimatedthat only eight percent of the country's corn output was from improved ‘AInterview with DIA corn specialists, July ll, 1963. SCaJa de Cre’dito Agrario, Industrial y Miners. Informs de M (Epsom 1961). p- 130. h 01 ”It. ‘ K ‘I. 108 seed.6 In the Valle del Cauca this percentage may have been as high as 60 percent, while in Antioquia it may have been as low as three percent.7 ‘ In late 1963 the Ministry of Agriculture amouncod an "Operacidn Maia," with the purpose of encouraging more feed grain production by the use of improved seed.8 Both corn and grain sorghum were included in this program. Technical assistance to producers is to be provided by the Institute Colombians de Cereglgg (ICE), and it is planned that the .gja Aggarig will continue its corn seed. - reproduction "and sale. 7 ' This feed grain development program reflects: (a) the tight supply situation for feed grains esqnerienced the past three years, (b) the preference by the government for domestic production rather than imports, (c) the strong apposition to corn imports by producer ' organizations such as the wmciflacioral de Cultivadorcs do - Cereales (FENAME), and (d) activities by food processors and feed . mixers who-face arapidly expanding demand for their products, without a secure supply for feed grain.9 6Interview, July 11, 1963, 22. 931'... 7A newspaper report, El Colombiano, September 10, 1963. 8 , Ibid. 9‘me decision to import grain sorghum rather than corn in late 1963 appears to have been a compromise between the different interest mp3. . o ' 109 Areas of Production A number of native varieties are available which allow corn to be grown in almost all sections of Colombia. Even though corn takes. 9-10 months to mature in the cool climate areas, large quantities are found throughout high mountain regions of Marine, Cundinamarca, Boyaca, and Antioquia. Additional production is located on rough mountain slepes in Caldas, Cauca, Antioquia, and the Santanders. In terms of area planted and total production, Antioquia is the most V important departmente for corn (Table IV-2) . The production. there, like most of the other mountainous and cold climate areas, is primarily for home consumption. Commercial production of corn is concentrated in the lowlands, especially in the north coast, in the upper Magdalena River basin, in the eastern llanes, and in the Valle del Cauca. As can be noted in Table IV-2, the national average production of corn per hectare is only a bit over one metric ten, but the areas which are more concentrated on commercial crop production generally have somewhat higher yields than the national average. the Valle del Cauca An important portion of Colombia! s comercial corn production is . centered in the Cauca Valley. Feed producers and industrial users of cornaremorepronnnentintheVallethaninametherpax-totthe country. During the 1956's and early 1960's there has been a quiet revolution going on among the farm units in the flat part or the v.11». Tentels yearsagemchotthelandwasinlargeland holdings, mainly in pastures, and over 800 thousand hectaresiof the > 110 Table lV-Z. Area, yield, and production of corn by departanentos, 1962 Departamento Area rroduetion Yield per hectare (hectares) (metric tons) (metric tons) Antiequia 82,000 92,500 1.1 Atlantico . 7,100 , ' 11,700 1 .6 lolivar 73,000 73,000 1.0_ leyaca 45,000 40,000 0 .9 : Caldas 16,700 20,000 1.2 Cauca ‘ 32,000 32,000 1.0 Cordoba 65,000 68,500 1.1 Cundinamarca 55,000 55,000 1.0 . Checd 12,000 9,738 0.8 luila 14,000 15,100 1.1 Magdalena 44,000 47,100 1.1 nariio 60,000 52,000 0.9 n. suntander. 39,000 28,000 0.7 Santsnder 48,100 48,000 1.0 feline 23,000 28,875 1.3 Valle del Cauca 33,000 66,000 2.0 as“?! 48,000 ( 66,400 1 .4 A11 dcpartamentes 696,900 753,913 1.1 3] includes area outside of established departaaentos. 800263: Mimeegraphed worksheets furnished by the Institute Raciosal de Abastecbnicntes, Bepsrtancnto de Investigaciones Icendhicas.r . 11.1 valley's bottom land was regularly flooded.lo In 1954 the Corneracién monoma Regional: del Valle del Cauca. (CVO) was organized to help , ,develep the Valle. By 1959, partially as a result of CVC's efforts, almost 50 thousand hectares or one-eighth of the area on the valley I floor was under irrigatiomu Huch of the irrigated land has gone into intensive craps. From 1952 to.l962 the area dedicated to k cans for sugar, for example, increased from 26 thousand hectares to 50 thousand. hectaresfi-2 Likewise, the area in cotton Jumped fromfllZI. hectares to about 36,000 hectares overthe same 10 year period}, Sisable increases in production of soybeans, rice, dry beans, and dairy production, were a” mum“, . ,- ., _. _. Recently fomdat'ed plans call for a large expansion in sugar cane production in the Cauca Valley. By 1970, these plans proj ect | Colombian sugar experts at a rate of 1.00 million dollars,u—up from 7.5 million dollars worth shipped in 1962.15 Even though actions loliiguel Camacho Peres, El Valle del Cauca; Estudio Sobre el Hombre Valleeaueane Su abitat La Tonencia de la Tierra Proceso Cultural Cali: .Imprenta Departmental, l9 2 J'I'Censo Amecua'riedel Valle del Games, 92. 21.3., Cuadro 57.‘ I’llnpublished data furnished by the Asociacidn Nacional de Cultivaderes de Cans. de Azucar (ASOCANA). . ”Alberto Sandoval A. , Ecstudie Gee-35022230 del Valle del Cauca (Cali: Instituto Vallecaucano do Estadirtica, 19605, p. 132; and information furnished by the Institute de Femento Algodenere (IPA). . ”A newspaper report in El Colombians, August 20, 1963 . . .15Departamento Administrative Nacional de Estadistica 'Elgtjg H. msual de’Estadi‘stica Ne. 14!. (Bogota’, March 1963), p. 58: 112 realized are often short of initial planning in Colombia, a tremendous increase in the sugar cane area will be necessary to even remotely approach this goal. In 1937 corn was the most important crep, in area, in the flat part of the Departamento of Valle del Cauca.l6 The area in corn steadily increased until 1958, when there were almost 58 thousand hectares- in com.” By. ,1962 it was estimated that only 33 thousand hectares. of corn were planted (Table IV-2). This decrease in corn area is very closely associated with the sharp Jump in cotton planting in v.11. since 1959. . ‘ ~ The North East Region About one-fourth of the 1962 corn production came from the north coastal Departamentos of Cordoba, Bolivar; Atla’ntico, and Magdalena (Table IV—2) . Much of the comercial sorghum production is also found in these Departamentos. Land in this area is often'being cultivated for the first time, and is often initially planted to corn or sorghum. This is especially true of the developing Sinu river basin, the area around Codazsi, and in Valledupar. Most of the sorghum grown in the north coast is found between Cartagens and Barranquilla. In 1962-63 one large feed company encouraged sorghum production in the Cartagena area by distributing quality seed and guaranteeing a fixed price. In 1963, through these .___ 16 Camacho Peres, pp. 31.39, p. 132. 1'Igense Amecuario del Valle del Cauca, 92. 34.3., Guadro 1.3.~ 113 efforts, about 6 thousand metric tons of grain sorghums were grown in the Cartagena area alone. The Cl‘Op appears to be especially well suited for. this region where lack of rainfall during certain periods of the year limit the production of other crops. . The large increase in the plantings of cotton in the north coastal region has also replaced some corn but the increased emphasis on crap production in the/area as a whole probably has caused an increase in both cotton and corn plantings over the past five years. Cotton is planted in the north coastal area following the heavy rain? season, and there is generally not enough moisture to grow a second crop. Serious damage may result from late rains. or early planting of crops like cotton. With irrigation, and some flood protection, crops such as corn and sesame might be used to follow cotton in a program of double cropping. ' There have been a number of studies done in the north coastal region with regard to the possibilities of exploiting large additional. areas through drainage, flood control, and irrigation. 18 The ‘ Magdalena Valley Corporation was created in 1960 to aid to overall valley development. In addition, INCORA's "06rdeba No. 2" pro: ect is . in the planning stage and is due to benefit some 70 thousand hectares ' through flood control, irrigation and drainage, in the immediate . IBPundacién para el Progreso de Colombia: Estudie Agra-Economico {relindnar del Valle Aluvial del Egan (Bogota, August, 1962); and Robert R. Nathan Associates, Programs de Desarrollo Economics del Lille del Magdalene} Herte do Colonels, .a study directed by Lauchlin Currie for the Ministry of Public Works, the Colombian » National. Railways, and the Colombian Petroleum Compam' (Bogota', 1960). vicinity of Cents.)-9 The Llanos . “Thousands of hectares of land in the eastern llanos of Meta and , 'Boyaci appear to have potential for future feed grain production. As . can be noted in Figure II-l, most of this area is new in pasture for extensive type cattle rearing. In some cases, the variable inputs include little more than the labor for driving the cattle to the nearest road for marketing. Transportation has been the most serious limitation on the development or this area. The land is generally flat, but largo rivers running off the eastern Cordillera make it necessary to construct a number of large costly bridges. New passable roads, nevertheless, are opening up thousands of hectares suitable for ' cultivation. This is especially true of ”the areas to the northeast and southwest of Villavicencio where cotton, rice, .yuca, coffee, corn, .hduricanpainsrs important crops. As canbs notsdin‘l'able Iv-z, the Departments of Meta was one of the leading producers of corn in 1962 with over 60 thousand metric tons. Thersinfalldistributioninmchof the lJnnosmay'beaJJmiting factor in the crops that can be grown there. Rainfall is concentrated intheperiodfrcmApriltoAugust, anditis commonformanyof the rivers to dryup fromDecsmber to'Pebruary. Double croppingvill be I difficult ' to impouible without supplemental irrigation. Rainfall, and ‘ ”Moment in El. Colombiano, August 12, 1963. 115 soil quality both diminish as one moves eastward from the mountains.” Although no sizable quantities of sorghum: are planted in the Llanos, a good deal of potential appears to exist for future production. Varieties of grain sorghum which can nature on relatively . little moisture will be especially suitable for planting at some . distances from thermountains. A further expansion in corn production candsobeexpectedinlandsnearthemountains. I ‘v - Peed Grain Producing Units in. farm, units producing feed grains in Colombia can be placed in one of. two groups. The first group is the thousands of wall to medium-sissd units which grow a snail plot of corn mainly for home consumption. The second group is the mechanized units producing corn or sorghum almost totally for comnercial sale. 1 WW ' TheforminwhichcornisconsumedinColombiavariesscmewhat. fromareatoarea.-Inintioquia, Caldas,andValle, for example, mammverypopular. Inthecoastalarsaand Cundinamarcacorniscomonlyeatenonthecob. Soupsandmanadas madefroncornareotherimportantfoodswhichare'popularinmosta partsofthecomitry. ‘ flaw of the small to msdium-sised farm units which are located A 20$” A. Escher, Estudio de los Problemas Hidraiflico en los Idahos Orientales do Color is (Bogota: PAC, June 1%35, and Institute _ Geografi’co Agustin Codazzi, Departamento Agrologico, Levantamiento Amlogico ds Los Llanos ggsntaicg (Bogota, 1959) for further description of this area. 1.16 outside the specialized coffee producing regions have several hectares of corn as a part of their farm operation. This corn is frequently produced on rough. rocky land, generally without fertiliser, and often interplanted with other crops such as beans and squash. Few of these farm units utilize improved corn varieties, and yields seldom run over ‘ a ten per hectare, and are often considerably less. The lack of ‘ proper storage facilities on the farm commonly results in large losses to vermin and spoilage.) I ' local taste preferences and also climate considerations detemdne the use of available native varieties. Various types of flint corn are popularforminintioquiaandadent cornismorepopularin Valle‘del Cauca and Tolim. A soft floury type corn is most often grown in Boyaca', Cundinamarca and Karine. ‘ Almst 60 person of the farm units with corn, according to the 1959-60 Census ofigriculture in Valle del Cauca, Celdss, and Cundinamarca were smaller than five hectares in size, and only included about one quarter of the total corn area (Table IV-3). of the farms in this size group had. corn plantings of less than one hectare. It is probable that most of these units produced corn strictly for home consumption. . ' I (Thel96OAgriculturalCensusofCundinamrcashowsdthat about 70 percent of the farms with corn had less than one hectare planted to 'corn. ismallfarmstudiedintheSabanaillustrates someofthe characteristics of units within this group. ll? Table “-3: Area of corn in Valle del Cauca, Caldas, and. Cundinsmarce 1959-60, by sise of farms with corn, and by sise oi plantings Percentage Cise class tar-s with Area of Corn distribution of corn “to tal re: rar- total corn area lee tares _ umber hectares percent Cise of term ' 1... th.h 1.0 "20,367 7,062 .3 ' s , 3.0-9 .9 19,615 28,339 1 .l. 16 10 .0-19 .9 12,620 24,231 1 .9 ~ 13 20 .0-49 .9. 8,025 25,072 3 .1 16 50.0-99 .0 2,996 16,840 . 5.6 9 100 .0-199 .9 1,483 14,961 10 .1 8 200 .0-999 .9 , 1,046 18,460 17 .6 10 1,000.0 or more 73 6,202 . 57.6 . 3 All terms 110,133 - 179,719 1.6 1001 lise of Planting less than 1.0 ' 68,086 '29,709' .4 ‘ 17 1 .0-1 .9 ‘ 23,657 33,435 1 .l. 19 2.0-15.9 12,409 37,326 3.0 21 5.04.9 .9 5,760 58,581 10 .2 33 50.0 or more 223 , ' 20,668 92.7 11 Universidad del Valle, resulted de Ciencias Icons-ices, Censo Agropecuario del Valle del Cauca, 1959, ldicion hell-ins: (Cali: October 1961) tables 32 and 35; .Mdrtllcnto Administrative Racional d. s.t.d£.tic., birecterio lesional de uploteciones Agropecuarias (Cense Agropecuario), 1960, Vol. 1 and u, logoti, 1962. 118 Farm x—. Subsistence Corn Producer Parmxislocated along the edge of theSabananearthetownof Subachoque. It is cosmosed of 5 separate lots ranging in sise frqn ‘ 0.3to2.6hectares. illparcelsareownedoutrightbythe 63yearold operator, andtotal area amounts to about 9hectares. The“ soils are .flat, and'noderatelywell drained, but strongly acidic and lacking in available phosphorus. " . . ihenainemterpriséoftheunitissonelOgradedairycaws, and aboutasmawyoungstock. Hilkproductionisratherlow, andincome' from lirestock sales is nearly as' important as sales of milk. A few. chickens, pigs, andsheeparekept toproduceitems forhomeuseand for sale. . p _ About one hectare of land was planted to corn for home consunmtion, andsnothersmallparceloflandproduced'two crops ofpotatoesper year for home use. tamer I has, on occasions, raised both potatoes and wheat in partnership (mania) with other individuals. ~ mthcnghOpmtchwascniygcttinngtoooomogm-so: cornperhectare_(6-10bushelsperacre) hecouldseenoconvincing reason for shifting his corn land into another use. He cited the big: prices which often occur for corn 34. months prior to harvests, and .the 2... that it w.. difficult to buy the variety his mm; liked as principal reasons for not changing. As on farms 8 and 11 (Chapter III) the traditional tastes plus associated risks of depending on the _ market (for home connmption purchases) outweighted aw modest gains 'whichdghtberealisedbyasubstitutingamoreproductive enterprise for corn. Similar-responses woqu be coupon for the thousands of ’ 119 other small corn producers who depend on the market even less than do operators 8, x, and I. W , Ihedatain'rableIV-Bshowthatfarmswithovertwohectaresof' .landincornnadeup65 percent ofthetotalcornareainthesethree Departanentos. Producers with more than five hectares of corn contribute 1.1. percent, of the total corn area, but probapr a hiyur percentage of corn output. Farm units with larger size plantings or- corn are more often users of improved seeds, are often partially mechanized, and generally have higher quality land for corn ‘ production. These larger units often use nixed fertilisers, but the practice of applying these fertilisers to corn is not ccmon. ' ‘ lost of the larger producers of corn and sorghum prepare and plant their land mechanically. Weeding and harvesting are almost exclusively done by hand. , ‘ At one time corn was called the coloniser's crop in Colombia. As new areas were opened and settlers moved in corn was one ofthe first crops planted. This is till trueto some extent forlandwhich i. being colonized, and also for ma which is switching ‘fron pastures to cultivatedoro’ps. When other craps such as cotton, rice,. and oil crops start to enter the area, ccmercial farn units ccmonly workout sons crop rotation which may or may not include corn. I‘arn organisation in the Valle del cwca illustrates how corn entersintocoslnercialproduotioninanareawhichiswelladvsnoedin' terns ofagricultural cropping. It also gives some hints as to the‘ possiblefuturemake-npofcropproctucingfarnsinareaswhiohare~ I u 120 presently less developed. OnthelOBpreliminary surveyfarmsinmcerritoarea (inthe valley floor), corn node up 20 percent of the area cropped, and was about 12 percent of all enterprise-units (Table Nah). corn ‘ contributed rougly the same proportion of the enterprise-units in all I“ sise groups. The contrast between farm make-up in the valley area, where counercial corn production is comon, and hill area, where corn is grown as subsistence crop is shown in TableiIV-S. loneofthelOOccsnercialfarnsvisitedinthemcerritcarea was a‘specialised corn producer. Rather, «Sam was grown in cotUunction with other crops and/or livestock. Nearly .70 percent of these 100 units were‘clsssified as nixed crops or crop and livestock ferns. ' Alnos't all of these units were raising corn,tor could easily raise corn if the operator'chose to do so. i media-sized farn unit in‘the Cauca Valley illustrates some of the adjustments and problems which face conerci‘al corn producers. ‘ Pan I—a Comercial Corn Producer .' ParmIislocatedinthevalle, andisnadeupofaéhectares of land. iwolotsof15and7lhectaresareownedbytwobrotherswho >workthefarnasjoint0perators. The smilerlotislocatedinthe‘ foothills, and is used emslusively as pasture for about 20 head of { cattle. The larger lot is a flat fertile piece ofland with; ample access to water. _ 'Upuntilabouthyears agothe fatherofthetwooperatorshad runmost of the principal lot as part of e'l92heotere, extensive . cattle ranch. " In addition, adJaoent parcels, totaling no hectarss have table IV-Q. Percentage distriyution of crop and livestock enterprise units. on 108 preliminary survey farms in the 31 errito area of Valle del cauca, by sire of term! Size of terms Crops Live- farm ' Corn Cot- Soy- Beans Grapes Others Total. stock ._F ton beans ' (hectares) (number), (percent of all enterprise units) sobrieteeoeB/ . ' .15- o o ' 2 . 15 ' 15 41 53 ‘ Co-ercial : . . ‘ . i . ‘ 1.1 - 5.0 33 13 o o, s ’19 24 ,61 39 5.1 - 10.0 11 14 s o ,o i ' 9 ‘ o as _ 62 10.1 - 50.0- 30 123 s p 7 2 . 3 lO 39 61 50.1 -soo.o 20 A 13 29 '13 13 '“ ‘g/ 1' 69 ' 31 500.1 or more 6' 1o 8 3 o ’ o 25 46 - 56 All terms . los 12 17 s 6 1 ' 12 ' _a_/ One enterprise unit was assigned to each hectare of crops, to each cow, and to equivalent numbers of other productive livestock. y Perms were classified in the subsistence group when more than half their agricultural activity appeared to be devoted to production for home use. ‘5! Less than 0.5 percent. fable "-5. Classification of 170 commercial farms in preliminary surve a, in two areas of Valle del Cauca, by typeend sise- Area and ' Specialised types Mixed Crop 6 sise ‘ . . crops olive- Il'otals Dairy Cotton Coffee Other stock at canal-1'0 (valley area) . 1.1. to 5.01:... ’0 1 0 2 524’ 6 '33 3.1» 10.0 '0 2 0 0. 1 " 3 3 '11 10.1to 30.0 r 9 1' .0 2 l. 16_ 30 (30.1 to 300.0 '1 6 3 0 ' '2 I. 3 20 500.1 or' um. " .2. .1. .9. .0. .1. .2. .__6 totals ~ 19 6 ‘ 0 _7 36 32 100 u corner-om (hill area) ' l.lto 3.01.... 0 ' 0 l6 0 6 1 23 3.1 to (10.0 .3 1 o 6 0 11 . s 23 10.1 to 50.0 n 1 0 I. o 9 s 22 50:1 to 500.0 "' .1. .9. .9. .9. .0. .1. ._z totals 3 0 26 0 26 15 70 s/ The classification by type was made by assigning one enterprise unit to each hectare of crops, to each cow, and to equivalent Perms were classified as diversified crop and livestock unless 80 percent of their enterprise units were within one of the more specialised type ‘ numbers of other productive livestock. ‘ ‘ classifications . . \ r . 123 beenpurchasedbytheoperatorsofIandcombinedwiththeirerim inheritance. , Iheeroppingpatternsofl'armrhavechangedsteadilytowardmore inteneiwentilieetionorthelenooverthepeetmyeere. cornhee '- beengrowneachyearsincethepastureswereplowedup,soybeanswerel grownfroml957tol963,andsomscottonordrybeanshadbeengrown; inl961endl962. Ineddition,about12grademilkoowsandone hectare of grapes rounded out the operation in 1962-63. Palnrislocatodinanareawhichhosagooddealofcanefor sugar, “cotton, rice, andvineyards. Irrigationis also cosmonon e ' nufier of neighboring farm units. ‘ 7 - ' V We ’ the larger parcelof landiswell suited for intensive crop production. In 1962-63 the crops grown included corn, soybeans, and cotton. the rel-hie well equipped with three tractors, tillage ‘i-plenente, andecombineforharvestingdrybeansorsoybeans. Additional equipment is available for use on the farm from nearby units owned by brothers, or cousins. In 1962, the operators also invertedinasprinklingsystemwhiohincludedaportahlepmp, pipes, and sprinklers sufficient to irrigate 10 hectares at a time. With lthisequipmenttheyhopedtobeabletoincreaseyields, andalsoto‘ regtflarlydoublecroptheirland. rhetotelvolueoreonpnentonthe faumamntedtooverZSOthousandpesosinl962. _ Threepermanentwurkersareemployedcnthefarm, withoneliving ontheprinsipallot. Additionalworkersarehiredfcrplanting, weeding, andharvesting. rhetwooperetore live with theirfadlies. iartheneertyvillage. I ‘ ~ 12h Inl962 cottonwas grownonParmIfor the first time, but owning to unidentified disease problems, associated with unfavorable weather, a considerable financial loee was incurred. Even though cotton maybe triedagaininecoupleofyeers, arotationofccrnandsoybeansis " considered as the normal cropping program for Perm I (Table IV-6). ‘ The operation of the livestock enterprise is somewhat limited because of the violence problems encountered in the general mountain 1. areawherethecettleherdis situated. Nobuildingsarelocatedon. tho smallerlot. iworkergouupddlyanddlkstheoowsendthen returns to the local village. ' w: Plans IIthroughVIeachtest theincome preepecte of several alternative cropping patterns. The first oonsideres a double cropping of corn: the second, two crops of soybeans: and the third, twocropsofdrybeans. PlansVandVIinclude cottonduring thefirstsemssterfollowedbycorninonscase, andsoyheansinthe other. Both the cotton-corn and cotton-soybean rotations are popular with cotton producers in the Valle. Becomended rates of fertilization are also applied “in each plan. -- No changes are assumed in the livestock enterprise. I ~ _ l . "Thenst earningsforl’lans IIandIII, aswellas theBenchmark Plan, would all be approximately equal (Table IV-7). But the Benchmark ‘ Plan with a rotation of corn and soybeans would makeweed central _ A somewhat easier than a double cropping of corn. The operators noted that losses from corn thefts were often substantial, and they were therpfore, somewhat hesitant to plant only'corn. They liked the ‘ additionaltimeavailable forlandpreparationhetweentwocropsof - IC‘IC 1"‘e 125 six alternative plans for Perm ‘1 Land use, crop yields, and livestock program under 1““ ":‘ml‘n " Plan 11 Plan 111 Plan 1v rlen v are v1 um 08! ' (hectares) , _ corn 7“ ~ . 67 136 --‘ ‘-- , 67 -- _ Soybeans“~ ' ' “ 67 ’ -- ' 13:. --. -. 67 _ Dry beens‘ -- .. ' -.- h 134 -- '-- Cotton " -- -- . .. -- 67‘ 67 . ' Grapes l l l ' ' l l l ‘ Permanent ‘ .' pasture , - 13 - 13 . 13 ' A 13‘ 13 13 “0' "m3 . (kilos per hectare) core a 3,100 3,100' . -- --‘ 3,100 ..7 Soybeans 1,900 -- 1,900 -- ' - --‘ 1,900 ‘ 3 Dry beans _ -- -- . -- 1,200 -- -- Cotton ‘ -- --_- -- ‘ -- 2,000 2,000 * . (boxes per hectare) ‘ : Grapes 7 600 600 600 600 600 - 600 uvssrocrowem' (nubers)' " 1.111: cows ’ ' 112- 12 ~ ) 312 12 12 12 Young cattle, 20 ‘ 20 20 ‘ 20 - 20 20. sell; 1 1 f 1 1 1 1 x inn-nonunion (kilos per year) . . moon 1,200 1,200 1,200 1,200 1,200 1,200 Table IV-7. Comparative financial emery for six elt‘rnetive plans for Perm V, at 1961-62 prices \ Benchmark.PlANII MIII MIV MV MVI Item Plan (corn) (soybeans) (dry (cotton (cotton, ’ . ' bogus) corn} soybeans} - -‘ ancnrrs ‘ (pesos) . . - ' ’ Corn 124,600 2.9.300 . .-- x -- 124,600. -- Soybeans,“ 116.600 ' -- 229,200 -- -- 116,600' Drybeens ' ‘ -- -- -- 268,600 -- -- ' cotton -- -- _ :2. -- 241,200 251,200" . Crepes 12,000 12,000 12,000.: 12,000 12,000 ' 12,000 7' “1.111: ' 3,300 8,300 3,300 0,300 . 3,300 8,300 Cattle 3 300 3 800 3 300 3 300 3 800 * 3 300 Totals A"'263""'.30"'0 "'"'"""273,400 233,300 “—4—.292,700 5331363 "37'9"'—,900 mtusrs ‘ ' x ._N ‘ , Labor "77,700 “.400 71.000, 71,000 106,300 97,000 seed . 8,100 7,200 ' 9,200 11,200 4,300 5,800 ' fertiliser . ,23,300 ‘23,300 23,300 23,300 29,100 29,100 sprey mtls. 3,000 I 3,000 1,000 1,000 39,800 37,800 Containers 11,300 1,300 1,600 1,600 6,700 6,300 Transport ; " 3,300 6,200 2,600 . . 1,600 6,600 3,300 tee 5. oil '6,000 6,000 6,000 6,000. 6,000 6,000 , Upkeep 6,300 - .6,500 6,300 6,300 6,300 6,300 “Texas 5,200 11,200 4,200 4,200 6,200 (6,200. leteteet 4,000 4,000 3,200 . 3,200 ' 6,600 6,400 other 1,000 1.000 (V 1 000 1,000 1,000 1,000 Totals 133,900 167,600 129,600 130,600 213,600 206,900 " mucous 126,600 123,s00 123,700 162,100 176,300 173,000 - .food 3,200 3,200 3,200. 3,200 3,200 3,200 .1132 unless 127,600 129,000 126,900 163,300 177,300 176,200 127 soybeans since soybeaneonlyrecplirelOOtolIOdaystomatureinths Valle. With a sprinkling system the operators thought they could get 5 crops of soybeans in two years. If this were possible it would improvothe inocmeprospeots of PlanIIIbylS-to 20percent, andmay‘ lead the operators to specialise in soybeans. the operetore also considered that specialised production of dry beans was an attractive- alternative new that irrigation ‘we. available. Both Plans V and VI, with cotton production, would return higher. netearningsthananyof the other plans,.assusdngthat disease . problem could be controlled and that proper irrigation practices word _ applied. The operators were hesitant to try cotton again, but it is likely that future economic incentives will be strong enough so that they will do so. If cotton is replanted in the future the Operators of Term I felt they would use soybeans as a second crop. ‘ 4 with the fietlbility in crop production which tern t has, it could be expected that the production on this fan would he'rether , , sensitivo to price. changes. With Title I imports at a sero level (novel II), for example, the economic enducements for'operators of I to produce soybeans, or cotton and soybeans would be rather strong . (tehlelv-s). ,on the other hand, if title I imports are continued et _ . I the same per-cepita rate (Level I) there would be less inducement to , change from the senohnerk Plan organisation. coder Level III, with a *‘deuhlinginthe rateofTitleIimports, theplanswithootton ' ' productionwouldoffer substantiallymorenet earningsthananyof . the first four plans. ' ' ' ifurtherpossibility, notbudgetedhere, isthat Parmeouldbe drunintospecialisedprcdnctionofcaneforsugar stunner. Table “-8. Istimeted net earnings from six plans for term I, calculated under alternative price situations related to levels of LL. 480 programs .rrice Benchmark Plan 11 Plan 111 Plan 1v Plan v Plan v1 .* situationa!’ Plan (corn) (soybeans) (dry (cotton (cotton, - , beans corn so beans ' (net earnings in pesos “1961-£2) ' . - 1961-62 . 127,600 129,000 126,900 165,300 177,500 176,200. 1967-69 - 1 131,300 153,800 149,700 178,600 177,600, 173,400 _ .- 11 188,400 170,700 207,000t17s,600 226,600 2.0.200. -111 139,600 141,300 138.200.178.600 193,600 193,300 a! see chcpter‘ 1, p. ,9. ' v. 129 would place the operators in a position of depending upon contractural relationships with a single cane buyer. The operators presently prefer . to maintain their full independence, but it is possible thet atscms ' later date they will be willing to accept a favorable long-term contract for sugar cane production. Other Consrcial Corn Producers flaw of the relationships and conditions described for Farm I exietedon other farms studied in the Valle. or ten sizable, ' mechanised producers of corn in the liunicipio of Cendelaria, for eremple, all but one had cropping patterns roughly similar (to Perm I. Corn, soybeans, ~dry beans, and cotton were the min cultivated crops. . One fans had only ccrn'as a crop,'hut also had a large dairyenterprise. Irrigation systems were also found on a umber of these units. 2 _ 1 large rented farm in the liunicipio of Palmira illustrates that even under non-owner operations, cropping patterns are about the same. The unit included 330 hectares, all rented, and almost all double cropped. ‘ Cotton was the principal enterprise, with beans, corn, ’ soybeans, and rice following in importance. Detailed income data for thie farmshowedcottontobethebiggestmoneymakerperhectarein. I962. ‘ Cotton yielded c net income of 882 pesos per hectare, rice 802 pesos, corn 563 pesos, and dry beans 1.86 pesos. Returns for soybeans _'vwenddrybeanswereeattremslylowinl962duetcaehortageofwaterfor [theirrigaticnsystem Theprcducerstetedthstinnormalyearsthe .'netreturnperheotareufrcmsoybeansandcornwereaboutequal. 130 Aggregate Prospects It is likely that one-third to two-thirds of Colombia's corn production takes place on unite mob liloe Fans 3, 11, end '1, which ere not primarily oriented toward comsrcial corn production. It is not probable that corn output, in the short run, on these units would be - t ' 3 responsive either upward'or dowlntard to price variations induced by ' alternativc levels of PI. 1.80 programs. Furthermore, adoption of . '.improvedeeedanduseofmoreintensivefertilisationwillbeslcwon'. these units. 2 is demonstrated in Chapter III, corn will have difficulty in competing for lend in cool climtes with petetoee, wheat, barley, and dairy. Thereisscmsreesontobelievethat cornplantingsinccol climateswilldecreascasmoreofthe subsistenceunitsareconbined into comsrcial farms, and as more producers enter the market for their. 2 corn needs. ‘ l . ' ‘ In the warluer clintes where ideal plweical conditions are found for the ccnercial production of corn, serious cometition for the use of land also eaists from other high value crops such as cotton, cane .for sugar, oil crops, etc. Ingreases in production of corn from ' existing crop enterprises in these regions will depend on the use of improved varieties, extended use of cccmsrcial fertilisers, end ' .. 'epproprinte application of irrigation end drainage. I productionoroornendniincenheupendedrepidlvonnewlende .Jindevolepingareaslikethenanosandthenorthcoastalrem. But .thiswilltakelargeamountsofpublicandprivate investmentinroeds, “drainageendflocdprotecticn, clearning, andotherpublic services. 131 is noted in Chapter II, past investnents have not been heavily oriented toward these types of agricultural development proJects. hrtherlnore, ‘ ifiuvestlent proJectsofhighcapital intensitydotakeplaoe, high veiueoecpeeocheecottonuuihevedietinctedventegeeoveroce-noe‘ sorghnls. mtionenddreinege, especially, inthenorthooast regionwilllikelybocstcornproductionbyallowingproduoersto followcottonwithoornorsesane. ‘ WV mm 9053mm Ill truism in) mm monomer Small quantities of dairy products hed been included intro or the first five title I amnts. the totel narket value of theee productswas less than§00thcusanddcllars.1 lithouphntlelehip. eente of endnel producte have not been an important factor in Colcnbia's ' internel supply. livestock enterprises are inportent cenpetitore tor ' agricultural resources. Moreover. an future expansion in intensive dairy and poultry enterprises will have a direct relationship .to the deeend for feed greenein colenhde. ' ' ‘ Dairy end Livestock Production cettle production has been e largo end inportent segment of the colonhden econosw. but the cceneroiel production of dairy producte ie , relatively new ani has net been extensively studied. As was noted in I chepter n. the value of livestock production in 1962 including beef. dsiry. poultry. swine. aid sheep probably amounted to more thandouble the value of the coffee produced. . nietoriene report that cattle uere introduced into colonhde ee ’eerlyee 15M. cone of these cattle entered hp the north coast end A l U. 8. House of Representatives go. sit... (18th Sedanmal Re- port) p. 67. Title mehipnonte ordrymroruee inschoollunoh programs ani food donations havo been significantly larger than ntle ' I ilports of nilk products. 133 noved up the Magdalena River. Others caste overland from Ecuador and Peru into Harifio, Cauca, and Valle del Cauca. From these original cattle four native breeds developed in separate parts of the country. mommmemuwumn. dull-Wm. devolopedintherough-ountainareasofintioquiaandCsldas. n. . W W1 Wm" mt 1.5m m. mated alongthe Atlantic coast. Inthe easternllanos anotherslsataninl. calledWcanetcbeapopularbreed.z ' Asearlyasl8936ebubreeding stockwasbroughtintothecountry‘ to isprove the neet producing qualities of nativc cettle. Their ' ' ability to thrive under tropical conditione has now resulted in debut blood being evident in a large proportion of Colombia's beer cettle. ' Dairyandbeefbreeds‘ofhtropeanoriginhavealsobeeninportedin- limited nulbers (Table V-l). As airesult of these imports a sisable‘ misterofqualityherds ofnolstein, RedPoll, Ayrshire, mam. Swiss, cannowbefoundthroughout thecountry,butnostnilkis etill produced by dairybbreed-crosses or nativo-cebu’ cattle. As can be I noted in Table v-l, eerethen two-thirds o: the breeding cettle “ inperted from 191.5 to 1962 were tron the'United stetee._ " W l . Estimates of the 1963 cattle inventory range from a 25 million ~ figure attributed to the Executive Director of the National Association of Livostock Funds, to a'nore conservative estimate of * Snowman and mm. W m I Deletifn de divulpeeién so. 5 (IBogo e or. culture, 1959). 'rsble V-l. Ilports of breeding cattle fro. the United states and other sources, 19105-62 Total. flares - leer arts United States gthar . ,' ‘(nunber of hesd)_ . . 1945 1,231 .fi- V ' ' 903‘ j ‘ 373- lsto "5 ~ * 643 , ‘73 ‘ a , 170 1947 ~*‘ ' ' 996 - ‘ 39o ' " .600 = 1968 . . 414 . 372- K, ’ 4i 1969 n I 82 -81 l 1950 . . 31; 265 ' ' s 53 1951 p' ‘ 272 _ " .. 241 . ' . 31:. 1952 I . 576 . , ‘ 472 ‘ I 106 1953', ~1.47 f '413 I I at last I “5,368 4,074 _l.294 1955 7,010 5.105 1,905 ‘ 1956 J ' 93d 1 we. no ’ 1951 , 2o ' 21 '3 1958 Ito . 39' s 1959 "’ ‘ 21 e is 1960 526 r 102 62‘ -1961" 336 220 w 116. ' 1,962 ' ._919. ._eeel .ro... 19,760 - lh.000 . . 5.290 scuacss: Departs-ante Munistrativo lesionsl de lstsdistica: ‘ Anuarios da Co-srcic Interior, 19155 through not (IlogotIs: various years) . sl coin-hiene: 8¢9:. l2, 196a 135- 16 union by the xinietry of Agriculture.3 to further confuse the lute the 1959-60 Census of Agriculture reported slightly less than l0 eillioeheedorcettleinlonepertenentoeA rheceneueoountie eubstantiallylowerthanestinatespreparedbythesaneagencyaftera Spencentsanple census inl955, andis farbelowtheoverlSIiJlion nationaltctal estimatedbytheBanoo Canadero for 1959. _ Three of these sets of data, with regard to cattle inventory, are preeented in Table v-z. It should be kept in nind that'the 1955 , ' BaIple Census and the 1?” Banco Genadero sstinates are not completely independent einoe the Banoo's dietrioution‘wee partially derived tree I the 1955 surveys. It is interesting to note that the 1960 Census ‘ U - figures are .1011 lower than the 1959 Dance estimtes for all of the north ooeet Departs-entos, thereto to 50 percent of Colosbia's cettle are raised. In this region cattle units are large, include a lot‘of ‘ wetswanpymnd,andthelandisoftenpartiellyortotallyoovered with heavy vegetation. This makes it very difficult for census emnneratcrs to check on numbers ofcattle reported, especially when omere w e. led by tex'coneideretione to undereetinete their ’ oldings. . * t ' I . ‘ W some indicationofthetrendinthesiseofthecattle elation, andalsothe'sisecfthecattleinventoryinl963is- 3 Ass thnewspaperarticlescfnm,aeptuberao 3, and W Septemberl‘a‘, 1963. . 'I' Audit-re W, 23. ‘MO: p. l6. table V-l. ‘rotel cettle population by Departs-autos, 1959-1960, according to two sources of date 1955 1959 eetinetee 1960 , Depart-ecu I Sample ' by the ' Directorio . ., . Census henco Canadero o ecuario ' (thou-ends) . Mr— - louver ' '~ 1,976 “I A 2,332 . 941 ' mane." 1.684 . 2.06s . ‘ 7 1.090 Ccrdoba ' , ,- -I1.-119 51,533 I 917 Antioquis . _ 1,402 . . .1.4ss ' I 1,159 eoyeci ' s40 1,056 ' 1.203 , Cauca 793 922 . ‘ 332 Cundin-srce < ‘ ,768 ' 738 , 673 Valle del Cauca . sls - ' 691 . _ 569’ rouee I- . 710 ‘ ‘ 649A 423 Bentsnder - N 624 ' ,. '619 . ' 618 I merino . . .. 310 , 398' , 213 ' Celdes . a ' 609 ' 462 , s. 688 n. contender I , ' 375. ~ 462 206 suile . 464 * ' ‘454 ,. ‘ 349 : Atle’ntico - ‘ 29o " 202 ' *' 141 Here * _ n.a. _e./ , ' 313 Show I . . n.a. ' 21 ' ‘ n.a. a.“ retele Tlfi'g'i' Emigfizzh/ %’ not; Soc-es s Departs-auto in 135. In the Benco‘s sari-ates. Meta 1'- included with the intendencies end conieeriee under "other”. nttference between total and sue is due to rounding. We ' lance dansdaro: Inter-as y Balance, 1959 (logotd: 1960), ~' .- as quoted blel. Riley. .. Departs-ens ministrativo lecicnel de lstedisticet theatre . Agricola lecicnal, 1955 (Iogote’: no date), p. 53. i : Directorio lecicuel de lgplctecione's Agropecuariss 1530, lest'neu lscionsl (Iogote: Dec.I1962, ,proeessed), p. 16. - I ' .(‘ 137 given by cattle slaughter records (Table V-B) . Host of the cattle 'killed in Colcebie go through mnicipal facilities, where local tenee are collected. In addition to these officially slaughtered cattle, a ‘eigniricent manner of eninele are killed in clendeetine operations, or ; driven over the border into Venezuela. Riley reports estimates of a _ 10 percent rate of clandestine slaughter, end 100,000 to 300,000 heed ‘ " per year- being contrebended into Venezuele.’ is canbenotedinl'ableV-B, therehasbeenaleOtoSOpercentI I increase in the nunber of cettle officially slaughtered in Colombia . , over the 191.6 to 1962 period. The more or 'less constant rate of renele eleughter implies that there has been e fairly consistent increase in cattle inventory over the past 17 years. Counting the clandestine slaughter, and contraband movement it is likely that I , colenbie produced over 2 nimon cettle for slaughter in 1962. Legal exportsihthaty0aramountedtoonly5thousandhead.6 iocnpleteben on cattle erporte hed erieted prior to Novenber 15, 1960, ee a neene of ' protecting Colombian consumers against higher beef prices. I - In the United States the ratio of cattle on farms to member slaughtered has averaged less then three to one for moreIthan 30 years. I - Inirgentina the ratiohasbeenroughlyfcurtoone. Apparentlythe 'I 1 inventory-nought» retio in Colombia is nich higher. IBeIef animals *1 have a slowrete of growth in Colonials end ere often heldfor 1. to 6. 138 Table MI. Huber of cattle slaughtered and officially reported, by sex, 1966-62 7'" H.108 . , fuelss . renal-5’ ' I (nu-bar of head) ' , f 19116.;I I '- 743W. ' 517 I ‘_ 1,259' 1947 , . 700 ’ _ 505 - I. 7 1,354 1940 I ‘ 790 - ‘ 574. 1,372." 1949 A 773 ' 360 . ‘. 1,330 = 1950 r 792 _ 604 . . 11,397; 1951 . ' 797 e . 634 . x 1,431 ‘ 1952 '1 _ 015 ‘ I I599 'I ‘ 1,414. 1953 {700 ' .540» . ~ 1,330 _ 1954 ~' . "I060 .. 44!. 7 1,313 1955 - ” 071 w ' 403 ' ‘ 1,354 1950 I _ 963 f * .- 507, 1,550 19.57“ - 909 , ' '_ 000 x 1,077 2950 ' “ ‘993 ' . 659 ' 1 1,051 . L959. '- I 970 . 507 ' , 1,557 360 ' 1 ' 1,000 7 ‘ 565 1.571 61. . 920 010 g 1,530 52- - 1,120 ' 000 ' 1,001 ' | .fi Son. me:- donot sue, due to rounding. I“; ”attach“ Administrative necionel de lstedisticez Anuerie - . amoral de fetedi'stice (logotd: various years), and folotin ' ' accrual de lstedistice, los. 121, II133,I and 1&3. 139 years before slaughter. In some areas such as the eastern llanos cattle are not fed minerals nor ere bull calves ceetreted. Few young beef ‘ aninlsarsfedccncentretes. CalvingratesarecnlyintheSOto'IO‘ percent range, and death losses for the entire cattle population may ‘ i ' approacthercentperyear.7 Theapproddmately2ullionsnimlsproducedinl9§2implye cattleinvcntoryofbetweenIZandléflllionheadIiftheinventoryb. slaughterratioisbstwensixtooneanthtooneinColcebia. Mil—WW UnlikeprochictionintheUnitedStates, deiryproductein Colosbia ere often produced by duel purpoee "animals. Moreover, ~eigniricnnt quantities or milk are produced on fern unite specialising in beef production, or on smaller farms where'income from sale of animals may succeed returns from sale of dairy products. The picture is further couplicated by the fact thatW cowsareanemptfrom property taxes under e epeciel interpretetion of the 1961 ten: lawgs henoe,oettlemeninareascfthenorthcoastareinclinedtothinkcf theirbroodcowsesdairy'aninnlseveniftheyareonlydlkedfore :ouple of nonthsduringthe year. s . ' I . , roe-1950, the Wow-oted the totalrdlk cow Much at 3.1minicn, withl.9eillioninproducticn,sandwithah ._4__ 78111.1, me me, p. 36s 8? Peder-acids Antioquena de Cansderos, W No.3 @13ng, 1962). PP. .9921» I F .4 MO total milk output of 1,908 million bottles (weight unspecified).9 1 later estinte placed the amber of cows milked at Just under two sillion heed.1° se D ‘ roduct The OPAL report of 1955 estimated that colonbian per-capita oonsmiption of milk products (in milk equivalents) wee about is: may... in1953.n. During the same period couuuptiou'e: Ink, products in the United States was at a rate of 69l-pounds per'year 12 . and though nilkpconsunption has likely increased since 1953. it is “ , doubtful in 1963, if per-capita consumption rates uere more than one;- thim of those found in the United States. ’ , ' Traditionally such of the null: production has been processed into ‘miswas, inpart, duetothedeficiencyof various types of cheese. Furthermore, the ‘~ handling facilities for fresh milk 'in rural areas. lack of refrigeration facilities in most homes forced housewives to buynnk demorpurcmeeotherdeiryproducteuhiohdiduotneed refrigeration. 9&3 do Credito Agrario, Departmento de Investigaciones (Bogotai, Uouenber, 1959). Email-1m. W.» ' 10 Unpublished data from the office of the Agricultural Attaohd, n. s. Enbassre Demo 11 Occasion Economics para la Andrica Latina, W - ' --t- _,.‘9 .-9--. . eeeumel ' ’ ; a!" ”a”: unit“ m ' '3 19 5 ’ WY“ {3. - 120. 8. Department of Agriculture, A. H. 8., "Supplement for 1959 p‘gricultural Handbook lo. 62, " tion 0 Food in he Uni W Washington: Government Printing. Office, August, l960) 11d. Rapidly expanding demand for fluid milk in the large urban centers is shifting the emphasis from cheese production to fresh milk processing. In Medellin, for example, the manager of m, which sells over 80 percent of Medellin“ milk, reports that sales of fluid milk have gone up almost 100 percent from 1958 to 1963.13 . . Inspiteofthefactthatper-capitaconsumptionoffluidmilkhas likely increased there are still large elephants of the population which do not regularly consume milk. A recent survey of 851 farm units in. intiequie. mainly in the coffee regions, showed that 36 percent of the I . fadliesdidnotconsumemilkduringtheweekprecedingthesurvey, and that 27 percent of those that did used less than A liters (bk quarts) per week.“ The lack of pasteurization facilities, refrigeration, localsupplies, and inoom are important factors in explaining why these families do not ecneuue more milk. - w ‘ Duringthepasthyearstherehavebeensoms significant shifts towarddairyprochictioninseverslareas. Thisisespeciallytruein theSabanaandValleuherearapidlyexpandingdemndfordairy products, heavy cometition from cultivated crops, and resulting highI . land values have forced beef out and helped bring dairy in. Land selling in these areas for from 7,000 to 15.000 pesos per hectare ‘ , 13mm, Ssptdsr 18, 1963. ' uGilbertoZapataIpterc," "Antioquiamlralfl'publishedinthe; magaaineWUosenandumogotazmitorial .lGuadalupeLtda.nomda ,p.lce...fI , I .- I I M2 ( 280 to 600 dollars per acre) in 1963 could not be extensively farmed in an economic sense. Generally speaking there are six geographic domnd centers developing for dairy products. The three dominant markets are Hedollin, Bogota, and cm, with lesser centers located in Galdas (Pereira, Manisales, and Armenia), the Santandors (Bucaramanga and cucuta), and the coastal cities (Cartagena, Barranquilla, and Santa 881'“)- . . . . Bogotx is the'larg'ost market, and is presently drawing milk from t'I , the surrounding Sabana, and Boyaca to cuppiy ite needs. Itis likely that future expansion in demand will create a need to draw milk frch ‘ both Tolima and Meta to supply the Bogota market (Figure V91). 7 Cali presently receives most of its milk from the Cauca Valley, but increasing eccnoudc pressure from sugar cane, cotton, corn and ‘ other intensive crops is giving dairy serious competition for land. Shipments from Narifio, Cauca, Tenn, and Galdas will likely be A necessary in [the future to satisfy Cali's demands. Medellin faces more problems in filling its future milk needs than an of the other nerhete. Largo quantities of milk are presently being ' f trucked in from northern Caldas, end cIerete, comeba. rho milk hauled ' rroe‘cerete touedenin taloos 18 to 20 houre byunrerrigeretedtrucke.‘ " Otheraroas inAntioquia, at somsdistance freelMedellin, arsbeing called upon to supply large quantities of ndlk. Seven cooling and pick-up stationshavebeenestablishedtoservesmellproducersin these distant areas. . nesolidoclorinflgureV-ldenotestheareasinColombia vhere niik production was ceneentreted in 1962-63. he hatched e...- Ire redone of potential. production. and the spotted areas. the'refore.' 1&3 0 ANTIC ,r‘ m i I l C O L O M B I A ZONAS LECHERAS INT: -Actuales um Posibles Movimiento a coneumo: -—-o Actua ..I. Posible moves pastas lleh represent pasture or potential pasture for dairy animals. Milk Producing Units A scattering of small-scale milk producers can he found throughout the country, and some heavier concentrations seen wound cmuudngcenters,butveryfewarsascholomhiacanbeccuntedas , specialisedindairyproduction. Overhalfofthofarmsclassifiedas ccmsrcialintheproliMnarysurveyhadoneormcreulkcowsflable V-lt). Minthesuhsistsncegroupovsrwpercenthadsomsadlk production. “Mm-mamthepmrymfamlnd: atleast6milkcows,andtotalherdsisewascomonlyatloastdcuble the size of the milking herd. . Onthebasis ofthecontactsmdeinthepreliminarysurveys, it is possible toidsntify four groupsof comsrcisldairyfarms with, distinctive characteristics. fheyare: I I l. the small to medium-sized diversified units which have up tolOcows, ; 2. the medium-sized unite which have substantial unphasis on milk, production, end may be specialized, . 3e'largedairiestithhordsofleOormoremilkcows,located .noarurbsnmarkets,and ‘ ‘ ‘ ‘ . le. ranch-type cattle enterprises with some brood cowswhich aredlkedforrelatively ehort periode. ' Al-cst all-of the 253'ccnsrcdal fawn (Table V-le) inthe prelinnaryeurvey'withherdsofuptolOdlkcowswei-ediversified. 1A5 fable V-t. Classification of preliminary survey fares in i ve ‘ smle areas according to sise of milking herd- Ierd sise Sample area rive J0“? sussxsrsucs reams Io cows ‘ i 11 3 7 26 17 . ‘ 66 One or were core. .- 31 a 1 I 10 '1 47' new. - Ti "7' "c , "a? 1‘5 . 1'11 lo cows . .. ' 21 25 ~ 325 36 I 93 '500 1-2 cows . , 25 1o 28 ' ' 3 49 ~ 115 3-s cows I . 2s 13' ' 2e 9 10 -. as 6-10 eowe , 11 - 12 ‘ 21 3 7 so 11-20 cows 6 7 ' 22 _ 7 2 ‘_ u. I' 21-so cows‘ . ' ~ ‘12 1s 19 6 1 s: 51 or acre oewe o 14 17 18 1 so Subtotals ‘ 1'55 ‘1? 753—5- 1-5- 135- W Totals- W ' 145 ' 103 664 - 118 131 1.011 3! Many of the cove eilked atsoma time during the year, and therefore counted in the milking hard, were of beef breeding or kept primarily for beef production, especially in the ‘ Ceretd area. 2’ The totals exclude operating units smaller than the following 1 minimum sises: 0.5 hectares in hedonia; one hectare in _ lpialas, Valle, and Caretd; 2 hectares in the Sabana. ‘ s 11.6 Some of the specialised coffee units in hedonia with only one or two cows were the main ecocoptions. In many cases a sizable portion of the milk production on those .units is consumsdonths farm. Additiomlnlkmaybe sold to neighbors, or hauled by smile, boat, bus or truck to the nearest urban . market. 1: the farm is located some distance from transportation . facilities or mrkots, ‘mtcsss milk production is often converted to various types of cheese before being transported to market. cows on these farms are usually of dual-purpose type, and the use ofartificial inseadnationisvoryrars. 'Poragoisoftenlimitodand on steep hillsides, along roadsides, fence lines, or new: brushy land. concentrates are very seldom fed to animals on these farms. In general, sizable opportunities schist for increasing the productivity of these dairy enterprises. Soiling crops such as M (w , my, plusIothsr improved pasture grasses could make significant ., contributions of badly needed forage. Artificial insemination, which , is available in several areas ofcolonhia, could also benefit a lumber, of these dairyproducers. . I l 5 A ’ Farm M (cont.) I _ 'rhe medium-sized, Marine wheat farm discussed in Chapter 111 is ' representative of dairy producers in this group. The five grade milk 1cowskoptcnthisunitwerealllowwoducers, andworefodIno, concentrates. Pastures are unimproved and offer less forage than. the . .' herd could profitably utilise. The producer has little access to townical information, and artificial. insomnation services must yet .‘ mum. in‘this part of coiouhie. rurthernore, the producer'e" e. e 1A7 interests are divided among several enterprises, and he is not likely to be very aggressive in improving his dairy operation. About25t030percent ofthohem'ssdlkproductionisconsumsd on the farm. Transportation facilities are limitod in the area, and" operatorMsmsthaulhis excess-ilk severalulomsters hyhorse to‘ ‘Pupiales,vhereitispickedupandhauled8to101dlometersto Ipdalos by bus. ' ‘ ~ ran 1‘, ' Another case in Predonia, Antioquia, illustrates additional characteristicsoftsnfcundamongunits withsmalldairios. lhis unit,_ likethousandsofothercoffesproducingfarns,hasfewprcmising production alternatives. Since new of theee coffee farms are located neardenssly populated areas,andoften_havesomedairycattle,‘it appears that more intensive milk production offers some prcdse. ' rernrheeepcdnodpntrecteonteiningsshectereeorwhiohaz areinnture plantings of coffee. .‘l'wo hectares ofsugarcano,andle hoctarescfpastureaccountfortheremainderoftholanduse. 1 ' secondtractincludes32hectaresofroughstooplnnd,alldevotedto pasture. Inaddition,theoperatorhssaone-sixthintorestina6h. heotaretract,whichislocatedinadistantpartofthelh1nicipio whoreproductiveactivitieshsvebsenlargelysuspondeddueto . "violence. Ascanbenotodin‘l‘ableV-Sptheprincipallotoffarnl' Ialoneismchlargerthantheaveragecoffeeunitfoundnearrredonia. I-’.oworhe1:o:theeonnercieirernewieitedinthe1mnicipdoodrredonie .has‘lessthanShectaresoflande ' " sneeiothertheneerreeiinoiudepietenoe, citrus fruits, amt, 'i'able V-S. Classification of 163 comerciel ferns i the limicipie of hedonia. by type and sise: . sise class Specialised nixed Crop and V Totals ' coffee _ crops livestock ' t; ‘ - , (nnnber'otntnrns) ‘ f 0.5 to 5.0 hee. . 7t , 9 u. , 94 . 5.1-to 10.0 "I _ 24 --~ 5» ' . 29' 10.1 to 50.0 n ' 22 > - . 7 .29 .' 50.1 or nore 3' __;_ J __1 __1_}_ totals 12: 10 so 163 g/ The classification by type was suede by assigning one enterprise . unit to each hectare of crops, to each cow, and to equivalent numbers of other productive livestock. terms were classified as diversified crop end livestock unless 80 percent of. their enterprise units were within one o! the more specialised ' type clessitications . , 1159 end-estanimls. Abouthslfofthetotalsdlkoutputfrontheacows' is consmdbytheoperator'sfefllyandhiredworkerslivingonthe fern. there-inderiesoldtostolOruralfsnilieswhiohlive nearby. . _ I Orossinooeeat 1961-62 prices forthisfarnwas estimt’edas follows: A A ‘ ' (Pesos) ' Coffee ' 63,000 Plstenos - 500 Citrus fruit .‘ 500 8111: ‘ 2,300 Cattle I M - , 715.300 Expenses included 33,000 pesos for hired labor, mm for cleaning and picking coffee, and 5,3!» pesos for supplies, upkeep, teas, and interest. his left a net income of epproad-etely 36,000 puc- p-r Mo ‘ ‘ ‘lhedsiryoperationonl', likefenll, isonly‘oneofseverel enterprises. Furthermore, the operator sees only limited opportunities, ~ ' tonerketeilkinrredoniaorliedellin, sinoethereisnooollectionof nilkinthelooality. levertheless,onened@borinaslightlynors accessiblelocetionisplanningtoexpsndhisdairyherdsndselllilk. intredonia,whichnowreoeivesbottledlilktruckedinfronmdellin, .so-séovldlouetersaway. ' i'Itcenreesonsblybeexpeotedthatestrensportationfacilities' erpandlandinprove,andasprooessorsinurbencenterscontinueto .“eeereh-tornoreprednotionormknhetmreeortuproaoereumhe -abletodiversify.intosoeedairyproduotion.r ipre-requisite forthis 150 willbedrastiochengesintechnioalpractices, andadditional educational progrens in coffee areas. edim—si—s < mcrci Dairies leartheprincipalconstningcentersthereareamerofnediuno siseddsiryunitswhicharenovingtowardspecisliseddairyproducticn. AunitcfthistypelooetednearSubachoqueintheSabanaillnstrates sonsofthecharacteristicscfthese fares. Faults __ ‘ , nimemiiydriventmnoyeekhythemienoeeettiedone fluctmfmmmaabaohoqueandxadrid. ‘hvoadditionsl adjacentlotsofninehectareeeaoh,plusa29hectarelotnolooser aveilable,werealsorented. 1n'eer1yi963the fetherofthe' family sold9hectaresofland,andncvedintobogotdtdthnostofthefelfilye fheeldestsmtookoverthenmgemtofthefmandisaidedby hisyoungerbrotherthohires-outwiththefenlytractor." curingthepeetreeyemehontzznirqmityhoieteinooeeend enenneimneerotynmgeteokheveheenmtup. wheetendbarley’ heuheenremernpoehonhothrentedendounedunduiththe” stubble,‘plus additional rotstion pesture furnishingforege for the livestock. Isprovedpreoticessuchasfertilisetionandpssture. rotationareused. Althoughartifioialinsesdnstionssrvioesare “available,theoperetorhaspreferredtokeephisownbulle' ' ‘ n1962ehontaooumpnneteweremoheeedendemn' 'ieyinghoneeereotedeeeordingtoreoomendedetenderdetortheeree. ~-1'heresultsfronthesehsdbeensatisfactoryencudtsothatthe 'operetoreeethintingorinufeeeingthetioekiniws. I 151 mepresentplansoftheyoungoperatorinclndecontiminghis diversifiedfanprogren. menthoughthesoilsonthefarnarerich andwellmitedfornostintensivecrops,theoperatorprefersto enphasiee‘pasmreanddairyonhisownlandandplantbarleyandwheat ontherentedland. Itappearsthstgivingupthedairyenterpriseto specialiseinberley,oneofthe noet profitebleorOpalternetives, ._ wouldreduceneteaningsoffarnlsconsiderably(seePlaanin fablesP-éde-fl. Potato production wtyieldnoreaverage incone thanbarlsy, but'the operator felt that thepricemertaintiss andhaserdsfrudiseeselededeirypreferablee . Agooddealofopportunityispresentforinprovingtheproductivu capecityof thedairyherdthroudtartificinlins-dnetion,andalso wreedingoonoentreteeetehigherievei. Pienenendm, ehoeninrehiev-éendv-v,invo1veinmeeingeoneentreteteedingper cowtoSOOkilogrensandmnlogransrespectively,ascoupmdwith the reteoriaouiomnemderthe BenchmarkPlsn.‘ The responsein additionelnilkproductionperccwisestinetedathooulop‘ansunderl 91mm.” antheheei‘eori961-62prioere1etionehipethehigher levelsofconcentrete feedingarecleerlyprofiteble. Plan 111, with the heaviest rates of concentrete feeding, would returnalnostBOpercentnorenetearningsthenthedoublecroppingof barleyinPlan-Ive Sincewheatcamotbedoflalecroppedwithmch -mccessinthe§abamitmuldhanevenlessopportuni.tythanberley ' 15°. 3. 8051“, Guide that and W0 chiganStste University. Agriculture]. Economics Departmt MN) 119}. 670 (Best lansing,liichigen,1957). « 152 table 7-6. Land use, crop yields, and livestock progra- ' under four alternative plans for Pare H8 It- ' - Bench-ark Plan 11 Plan 111 Plsn 1V ~ rlen LAID 08! (hectares) Barley” ‘ , 6' 6‘ ' 6 l 66 Wheat 12 12 - 12 - -- Rotation pasture 1s 15 ‘ 15 ~- CROP nuns (kilos‘ per hectare) , barley 2.200 2.200 ‘ 2.200 1.900 whee: _ 5000 2.000 2.000‘ .. Linn-cor on m (nu-here) A. 11111: cows 22 y 22 I 22 -- heifers and calves 10 . 10 1' lo’ -- Dairy steers ' f 7 7 A ‘1 . -- lull 1 1 1 .. Layers 20o 200 h 200 200 tau rectum-toe (kilos per year) "j 2.500 ‘ 2.900 3.100 -- Pertew g. 2153 table V-7 . Comparative financial summary for four alternativo plans for Pam M3, at 1961-62 prices fienchmark FIE-n I! PIES m1 PE 17"— . Plan (low damn. (moderate ...(double 1 Its- (very low ‘ trate concentrate cropped conc.fefla) foedTing) feeding! berm: RECEIPTS - . pesos . ’ larley‘ J - I‘ 7e920. 7,920 ‘ 7,920 , 75,240. whee: .' . 17.520 17.520 2 17.520 - ' -- ' Kilt 350570 51.460 “.410 f- eattle and calves 19.900 19,900 " 19.900 -- lggs 13,000. . 13.000 13.000 13.000 Powl ' , 1,800 1 300 ‘ 1 800 1 800 rote1e 95.710 . —""'"101.600 Tats—55 9"""'0.040 more ‘ ‘ Labor _ 5.660 5.660 5.660 2,830 seed 2.490 2.490 2.490 x 6.510 Pertiliser 5 line. 5.400 5.400 , 5.400 16.170 Spray asterials 180 ' ' 180 180 ‘ 660. Dairy feed ' . 2.510 . 6.500 8.030 -- Poultry feed 7.980 7.980 ~ ' ' 7.980 7.980 m1. pullets 4.200 .. 4.200 * 4.200 4.200 Misc. livestock . - . erpenee 1.500 1.500 1.500 200 transport » v 300 300 300 1,000 see and oil A 360 360 360 1.320 nachine hire 1,920 ‘ 1,920 , 1,920 6,500 upkeep T 700 700 700 .400- rues 680 680 680 680 Interest 800 800 t 800 1 I800 . rote1e 42.960 46.950 ' 48.480 58.530 at mean 52.750 54.650 . 56.070 31.510 ' lone-grown food 3,020 3,020 3,020 “ - 2,200. m mince ‘ 55.770 57.670 59.090 , 33.710- 1511 for replacing dairying on this fern. It does not appear that the three future levels of title, I imports would alter~ the. relative. profitability of higher concentrate feeding rates (Table v.38). The cessation of. Title. I imports; under. Level II," ' and the resulting higher costs of concentrates would discourage dairynsn from increasing their rates of feeding concentrates. on the ._ otherhend,lnrgeinports'underhsvelmwouldsurelybenore ‘ . favorable to’hiyter rates of concentrate feeding thanunder a ‘ _ situation characterised by high feed prices and feed grain scarcitye'. ’ Sincenostofthedairynenareunfandliarwiththeresponses ' possible ineiik production from concentrate feeding, new of then will have to experiment with modest changes in feeding rates before the responses asstmedinthissnalaniscanbeacccptedasindicative of results on an aggregate basis. Production responses calculated -for theUnited steteennynotneceeeeriiveppuincoionhie. hutonemet‘ dependenthieiiniteddetependinghetterexperinenteievidence. 0n tbisbasisitcanbeooncludedthatmwcomercisldairyproducers will rind it profitable to expand feeding ofconcentrates in the futtire. naieuui'he eepeeieuytrneorprodueereeioeetoeonming‘ centerswheremfeeds areaveilable, andwhere favorablenerketing conditions for milk cadet. , _ innherotdeu-yoperetioneuiuheerpendingthe sineoftheir herde in the next few years in edditiento utilising nore concentrates. rheeoqoeneionemtehothtine-eonenndngenderpeneivetortheru-n 'units involved. he operators will have tosacrifice inediate income 7 no. cash erogeohiie WW peetnree. and rearing ' heifers. morthenuiiimohevetominuetnenteinhnudinge 155 18510 M. Intimates! net earnings from four plans for Perla H8. calculated under alternative price situations related to levels of P.L. 480 progress Price Bench-ark Plan 11 Plan 111 Plan 1V situations-5’ Plan (low concen~ . (moderate (double (very’ low trate concentrate ' cropped concentrate feeding) feeding) barley) . feeding) ‘ Gtet earnings in.pesos “196132) 1961-62 '1907460 - 1 - 11 - 111 w55s77° 55.1h0 63.280 51.730 . 57. 670 57,800 615,590 53,630 ft 59 .090 58, 120K ' 65,770 55,050 33.710 33.200 47.200'~ 20.080 , .s/ 3“. Gupta: 1's PO 9e 156 and additional stock. Son of the difficulties, as well as possible benefits of a transition to sore emphasis on dairying, are illustrated inthefolangdiscusionofaWisedunitattheedgecfthe Caucanley.. 1 Panic ‘ PorthelestStolOyearstheprinoipalenterprisesofPem‘fG have been riceproductionanddairying. Approdntely‘la hectares‘of ricehavebeendoublecroppedeachyear,andaod.lkoow'herdof13. naintained. A 51. year. old operator directly manages the ‘33 hectare ‘ fare. 'His22yearoldsonownsadjoiningpropertyandgiveslinited. assistance to his father. The operator of Peru 1'0 also controls _a l9hectareshareoflandinhis father's estate, whichhasnotbeen officiallydivided. mienndiecroppednnderepertnerehip arrangementwithanotherheir,whopayshalfofthe‘e:q7ensesandtl receiveshalfo‘ftheincone. Thebalanoecfthereceiptsanderpenses fortheoropsofoottonandsoybeansareincludedinthefinancial' smeryforfarnl'c,butnochangesinlenduseonthisinherited tract will be considered-in the alternative plans discussed later. l'hedairyherdhasnotbeenintensivelynencged. Eventhough the cattle areoffiolsteinbreeding,‘ average ammalproduotioninl962 was only estimated 'at 1,100 kilograms per cow. no concentrateswere fed in 1962, and the 20hectares ofpasture are not regularly rotated orfertilised. Theoperatorof‘fchadbeenfairlywellsatisfiedwith theresultsofhisoperetioninthepaet. Ithasfinencedthe ' "educationofhilechildren,andprovidedthefanieritha '1‘ conforteble standard of living. autin 1962-63. the operator we '\ 157 felt that he should make substantial improvements especially in hie dairy operation. The fact that most of the nearby fem units were beingintensivelycroppedwith sugarcane, cotton, soybeans, cornend- rice, plus the fact that his land had appreciated to a value of 6 thousand pesos per hectare were important reasons for this decision. Experimental evidence. suggests that artificial pastures such as m (W under mention and fertilization. '_willproducesubstantiallyhid1eryisldsthsnthenetivepastures presently found on fan 1'0. Under carefully managed rotation-grazing, Mouths erpectedtoprovidehigh qualityforege forat least three head of adult cattle per hectare. Aw,,,.szxedz1cing the area in rice to 5.5 hectares and . ’plantingthe remaindertoimprovedpasture, atleastSOmilkcoweplus yeungstockcouldbenaintained. Thepurchase ofnnstofthesnimals needed for expansion would provide an opportunity to upyade the average productive ability of the herd. In addition the rations for I A both cows and young stock would be supplanented by concentrate feeding. . Vith improved pasture, concentrates, and some increase in productive capacity of the herd it seems reasonable to expect that an annual production of 3,000 kilograms of milk per cow could be attained after a transition period. Additional investments in livestock and buildings neededtorealisethisplanwouldamunt to about 91,000pesos. With . "1... cultivated land the operator could sell his 5 year old tractor and rent cultivationtimefromhis sonwhoalsoowns at1_-a.c1'.or.~ llheannualfinanoialsunaryforanormalyear,underthe 1962 ' organisation or the farm- and the results for the Alternate Plan after 158 . a period of transition are shown in Table v.9. Net income could be expected to rise from about 50 thousand poses to over 80 thousand, after including allowances for replacement and interest charges on the additional investments in structures and equipment. 7 ‘ .Acentralpointinoperatorm'sdecisiontoexpandthesizeand intensityofhis dairyherdwillbethe distributionofincomeoverthe transition period. ' ' ' mm rehiev-ioehmthepiennedehengeeinthedeiry enterpriseduringa7yeartransitionpericde1flththepurchaseof55 twotothreeyearoldheifersinthefirsttwoyears,theherd'couldbeI incr'euedtoSOnilkcows within7years. l'sbleV-ll sunrises the 'anmalcashtransactinnsemcludingloansandrepaymsntsfortheseven year period. Table v-12 presents a sumary of the annual net cash imomeincludingcredittransactionsoverthesameperiod. ‘ A Thedecreeseincashincomsfromriceproductionplnstheoutlay ' of 69 thousand pesos for additional heifers, would force operator 1'0 toborrow65thousandpesosinthefirsttwoyears. Evenwith’these“. loansnetcashincoms,aftcrcredittransactions,wouldbereducedby 28 percent the first year over the BencMrk Plan (Table V-lZ). Income wutldstillbellpercentlowerthantheaenchmarkPlaninthefirst year, but after that'would he substantially higher. ’ Onanaggregatebasisitcanbeexpectedthatmawoperatorswill 'beheeitant toundertake’arapidsmansionintheirdairyherdsbecause ‘ofthelengthoftinenecessarytorecoverfinedinvestmsnta. Further- ‘eore.nnro:theeeoperetorewinheevnrdnconnttheutiiityor "expectedhiflerinccusafterthetransitionperiod,becausecfthe \. 'fable v-9. Annual financial summary for two plans in a "normal" 159 year after a transition period, Peru '10 . It- Benchmark Plan Plan 1 meme- lice ' 48,000 13,600 Cotton ‘ 27,000 27,000 . Soybeans [16,900 . 16,900 nilk 7,800 . 113,800 cettle and Calves 1,600 15,100 total 101,300 186,600 mmsrs ‘ Permanent workers ‘ 1.300 3.300 reeporery workers 23.900 12,600 machinery rental , -- 0,600 A. seeds 6,300 2,600 ‘chenice1e 9.400 6.700 , Pertilisers 500 10 .300 Livestock feed -- , 63,600 Gas and oil 1,400 . 700 Purchase of livestock -- -- Veterinary and nedicine 400 7 4,000 ‘ Containers 1,400 1,400 'rransport 700 ' 700 Water rights 100 100 1...... insurance 600 600 ' Miscellaneous 1.000 1.000 Repairs 3,000 1,500 Current replacements . 1,000 1,000 . Added replacements -- 300 interest on added invest. -- 3,800 total 51,500 106,300 err moan 49.800 82.100 Herve 41—0. Greener n: are drawn anneuvnwee ncnwnn are nnrnepnnon weapon cm.~enliaa Han: «can. on «no «assurance dawn nun-n meconn arwnd more": annmww, mnunr account a zcavnn on enpseww up are roan > Shaw none no. uu uu . nu ow on no we went... n-a ween. .. 8! 8K :. S S . pm 2 s we» a a 11 we . pm #9 no . Ha Ha .. at» s s at pa nu pa Ha Hm pa menu. a u N u u u u u >nnsn~apmmnoreeea . mnwmena. Nnu «can. no. nu no 11 on no on. to wanna, s 11 p 11 p 11 11 11 >nwanua noun . . onus note no. u us no pk no pa no canoes . a pa ”w. Na up no u» an Spurrnnonnonnon . . . . muodconpon new not. Ina. w.uoc pcmoo Noyce Nenoo Neuoo ueooa ucooo Honeu vnodcnnpon : ”Neuoo mueooo o0.uoo wouenoo pno.ooc ~au.coo Huceooo nonecnnn cw cannon. : o.noo rec ucnoo utnoo n.aoo romeo n.aoc mono nonncsenuol : ~.ooo co _ ”.009 N woo ~.woo n woo u 009, «can pmenoo. N co m~.ooo oueooo Hwo.nco nurtumm uuueuoo nonncnnnanee not . . . . Ho sharpen coca nae. ~.u°o p.009 uo.~oo unenco o».uoc aaeooo mo.ooo no man none : ”coco e.uca u.coc utmoo o.uoo 0.900 o.qoo Ho wanna sneer z n 060 o woo o woo o woo . u «00 u ace u moo nee: .. drip .So .Mrloe |T|e~.8n “Irma mama 1.3:. a Rx announced n: noseeunaon on ounces near «wenneanuonn. exe~ca»nm scene and denounces-r non. «to gene deepen a eeuenuween nuanepnnon coupon on meal .3 Hence 7:. \I npnennene upon. on «acne deepen are nuanepnnol 161 Haul. , , annoys-Hr IIII . anon ~pnan mucosa fiwwnd wanna: mama: manna «ocean: . . Awsaoev gonna“ . v . shoe nmeooo uu.ooo Hueaoo wu.ooo Hu.aoo pu.ooo Hueaoo , pu.moo nonnon _ -cooo n~eooo untooo nu.coo Nyeooo N~.oco N~.coo. n~eo°c mourn-n- wa.ooo no.moo ~a.ooo waeooo Ho.ooo pa.oco so.ooo pocooc Ivar . ~.m°o uncuoo ou.o¢c ou.occ wu.oco ou.ao¢ puuenoo ppueooo. nannue and oepcee ~.aoot u.~oo ~.uoo -.~co -.uoo ~u.uoc uu.woo ~u.~co Honey papeuoc wuu.~oc uao.noo ~aa.ooo ~mu.noo Anonae.nnxa.vewev uncooc Hoocooo ~bu.uoo 1611(cont') Aanq~e HHzn nxwwzmflu . 20H 0’00.Hzaozu wenabnenn neurone. ~.000 0.000 .0.000 0.000 0.000 0.000 0.000 0.000 Hesnousuw.¢onreue 00.000 -.000 ~n.000 ~0.000 ~N.000 . ~0.000 ~0.000 ~».000 xenr~nena nonne~ 11 0:000 0.000 0.000 0.000 0.000 0.000 0.000 manna -0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 nuns~0e~e 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 nenn-~aena 000 ~0.000 ~0.000 ~0.000 ~0.000 ~0.000 ~0.000 ~0.000 r~dnnn nnv~snelnnne it to 11 to on to 11 11 swaee-eneoce ~.000 ~.000 ~.000 ~.000 ~.000 ~.000 ~.000 ~.000 . Honn~ 0~.000 00.~00 00.000 0>.~00 00.000 00.000 00.000 ~00.000 n>0~a>r oaarhna . . e- . . uc-n~n0a 11 0.000 11 to .1 at at at mennenenn menace on ~.000. 11 no on 11 at 11 0e~nw canny-era to ~.000 000 000 on on at to r~