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

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

Comparing and Contrasting Agriculture in East and West

Germany – Historically and Today

By Allyson Chwee and Maddison SieckApril 22, 2008


Introduction

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Objectives

Eastern and Western German Agriculture

1. Historical background

2. Current and future

3. Comparison to U.S.


Historical Factors Behind

German Agriculture TodayPre-Reunification


Historical Factors Behind German Agriculture Today

Pre-Reunification (pre-1990)

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

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




Problems in East German Agriculture•Productivity

•Technology•Yields

•Consumption levels•Poor Quality Standards•Livestock Pollution




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



German Agriculture TodayReunification of German Agriculture


Historical Factors BehindGerman Agriculture Today

Reunification (Oct. 3, 1990)

Issues for Successful Reunification of Agriculture

1. Alignment of prices

2. Reform markets

3. Increase standards



Reunification (Oct. 3, 1990)

Problems in East German Agriculture with Reunification:

1. Land appropriation• Treuhandanstelt (THA)

2. Markets and prices• Influx of western products

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



German Agriculture TodayPost Reunification


Post Reunification

October 3, 1990

Goal: Transform Eastern Germany into a market economy.

-Temporary market boom followed by downfall and leveling off.



Post Reunification

East German Industry Changes

-Modernization

-Re-Education



Item East Germany West GermanyAgricultural GNP

($ billion)15.95 27.9

Agricultural GNP per rural

inhabitant ($)11,200 13,520

Land (million hectacres)

6.2 11.8

Labor (percent of work force)

10.8 4.2

Souces: Agricultural GNP

Comparing Agricultural Sectors (1989)


ProductionNumber of Farms

Production

More efficient production methods:

-Modern Machinery

-Technology Innovation


Dividing Collectives

Cooperatives Partnerships

Family FarmsJoint-stock Companies


Current German AgricultureEast Germany


Current German Agriculture

Eastern Germany

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

Future•Comparison to western Germany•Number employed•Biodiesel


East German States

Mecklenburg-Vorpommern

Brandenburg

Sachsen-Anhalt

Thuringen

Sachsen


Current German AgricultureWestern Germany


Western Germany

- Industrialization Farms

- Surpluses

Current German Agriculture


Comparing German and United States Agriculture


United States Climate


German Climate

Temperate


United States Farms


German Agriculture


CAP vs US Farm Bill

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

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


Fragen?

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

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