Consequences for Production

Production is directly influenced by measures for improving land management It is indirectly influenced by incentives affecting work performance and investments that ensue from a land ownership reform. Regarding the effects on the production rate, it is possible to differentiate between short term and long term effects. In the short run, there is the danger that there will be a setback in production; or at least, significant increases should not be expected. Particularly slow enforcement of the reform causes periods of insecurity. The new farmers still lack experience and do not have sufficient inputs. In the case of collectivization, the new organizational and decisional structures have to get into full swing. The danger of a setback in production can, however, be reduced greatly by mans of intensive land management reforms measures.

In the long-run, an increase in production can be expected. The new farmers have reason to work hard, and the old large landowners will try to make up for losses by intensive cultivation of the remaining land at their disposal. This will, on the other hand, be all the more successful the more intensive the help given by means of providing the necessary services. The higher the level of development, the easier this is, and therefore it is possible in this case to expect larger increases in production than at a lower level.

The effects of the agrarian reforms on the type of production are generally clearer. The transition from large to small farms leads to a tendency to increase the planting of crops that guarantee self- sufficiency, animal husbandry, multi crop farming instead of one crop farming, and annual instead of perennial crops. The drop in the market share resulting from this can be aggravated by the new farmers increasing their consumption. Fears that the rural population's supply will suffer are generally exaggerated and are the result of false agrarian reform measures. Appropriate measure for promoting land management make it possible to avoid decreases in the share designated for the market and setbacks in the cultivation of export crops.