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 APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200070030-5

'''FIGURE 9. Threshing of grain by private Polish farmers (U/OU)''' (picture)

'''FIGURE 10. Private farm market in Poland (U/OU)''' (picture)

estates in the former German territories. They have since gained some new acreage from reclaimed land and through annexation of private farms whose owners died without heirs, or deeded their farms to the state in return for pensions. Most state investment in agriculture in the past has been channeled into state farms for the purpose of developing new farming methods and improving plants, seeds, and livestock breeds.

The small size of the typical private sector farm and the noncontiguous nature of the plots (in some instances plots were separated by several miles) prompted the regime to initiate a series of land reforms on 1 January 1968. The reforms sought to increase the size of the average private farm and to consolidate landholdings by obligating the state to purchase small, marginally productive or scattered landholdings for subsequent resale in the form of noncontiguous plots; to guarantee a pension to older farmers who turn over land to the state; and to sell land from the state land fund to private farmers, as well as to state farms to enlarge their holdings. So far, the program has met with only limited success. Between 1968 and 1970 about 500,000 hectares were relinquished by the state land fund, of which only 43% was sold to private farmers. While the total number of private farms declined slightly, the number having less than two hectares each increased.

Since the mid-1950's, Poland has tried to increase efficiency and promote technical change in agriculture by greatly increasing the allocation of resources to the sector. In an effort to end agricultural stagnation, the Gomulka government nearly doubled average annual investments in the sector during 1956-60, compared to those of 1950-55. Total outlays in agriculture rose 48% during 1961-65 and 68% during 1966-70 over the levels of the preceding 5-year periods.

Agricultural investments as a percentage of total investments have risen steadily since 1956, as shown in the following tabulation:

During 1966-70, agriculture accounted for a greater percentage of investments than at any other time during the postwar period, although the 16.1% share was less than the 16.5% share planned for that period. The shortfall was due mainly to the fact that private investments, which made up roughly one-third of all agricultural investments in that period, did not meet expectations because of the limited availability of building materials and agricultural machinery. The 1971-75 plan envisions that about 55% of the total investments in agriculture will be generated by private farms. In 1971, the private sector's share of agricultural investments was 38%, the highest level in a decade. Deliveries of industrial goods — fertilizers, building materials, and machinery — to agriculture also showed a large improvement but still fell short of demand.

Although the Polish Government has continued to espouse the long-range goal of socializing agriculture, the retention of private ownership has enabled it to avoid the costly and less-productive investments that other Communist countries have had to make in new collective facilities to replace privately-owned buildings. Moreover, the willingness of peasants to work harder on their own farms than on collectives has generally resulted in more efficient use of machinery

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APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200070030-5