Net farm output increased much more slowly because the cost of material
outlays per unit of output was steadily rising. In the 1963-68 period
the increase in material costs amounted to 33 percent.
The growth of farm output during the 1960s was well below the planned
levels of 70 to 80 percent for the years 1960 through 1965 and 26 to 32
percent for the 1966-70 period. Instead of more than doubling, output
increased by barely one-fourth. Unfavorable weather conditions during
some of the years were only partly responsible for the nonfulfillment of
the agricultural output plans. Other major factors included the
government's failure to provide the planned volume of inputs and an
apathetic attitude on the part of farmers owing to inadequate
incentives.
The shortfall in fertilizer deliveries during the 1966-70 period alone
amounted to 1.3 million tons of nutrients, or one-third of the planned
tonnage. For the decade as a whole, the shortfall approached 2 million
tons. Deliveries of tractors and farm machinery also lagged behind
schedule. Although an area of almost 2 million acres was to be irrigated
by 1965 and, under revised plans, an acreage of from 1.6 million to 1.7
million acres by 1970, only 550,000 acres had been actually irrigated by
1965 and 1.45 million acres by 1969. A careful and sympathetic Western
student of Romanian economy concluded that the production targets for
1965 could not have been achieved even if all the planned inputs had
been provided on schedule.
In the view of some Western observers, an attitude of indifference on
the part of farmers, based on the inadequacy of returns from farming,
particularly on the collective farms, was an important contributing
cause for the failure of agriculture to realize its growth potential.
The real income of farmers was scheduled to rise by 20 to 25 percent
during the 1966-70 period; the official announcement of the plan
results, however, merely noted an increase in income, without citing any
figure--a clear indication that the target was missed by a wide margin.
The negative effects of the disparity in incomes on the collective
farmers' sense of responsibility and, hence, on agricultural production
were officially recognized. This recognition led to a revision of the
system of compensation for collective farm work and to a reduction of
farm taxes in early 1971 but did not significantly alter the position of
agriculture within the economy (see Organization, this ch.). The
possibility of alleviating the situation by raising farm incomes through
a general increase in farm prices was rejected on the grounds that such
an increase, without a corresponding rise in productivity per worker and
per acre, would constitute a redistribution of national income
incompatible with the best interests of the economy.
Crop Production and Yields
Public-domain text, read in full here on John Shaqi.
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