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?ART-TIME FARMING in CYPRUS a Pilot Study

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?ART-TIME FARMING in CYPRUS a Pilot Study 4d,). University of Reading Department of Agricultural Economics & Management ?ART-TIME FARMING IN CYPRUS A Pilot Study i C CIAN NOM1C5 RICHARD PEARCE RIC,- Li LTLI RAL LIEG i 4 081 Development Study No.21 1981 Price £2•00 PART-TIME FARMING IN CYPRUS A Pilot Study RICHARD PEARCE ,• JULY 1981. ACKNOWLEDGEMENTS I wish to express my gratitude to Barclays Bank International for financing both my trip to Cyprus and this publication. I am also extremely indebted to members of the Ministry of Agriculture and Natural Resources, Republic of Cyprus, for their advice, co-operation and support during the survey. I wish to thank colleagues of the Department of Agricultural Economics and Management, University of Reading, who have assisted me, particularly Martin Upton for his continually helpful advice and encouragement during the writing of this essay, and Douglas Thornton for invaluable comments on an earlier draft. Thanks are also due to Ginny Hume for her creative cartography, Audrey Collins for her excellent typing and to my friend Rubavathy for her patient forebearance. A special thank you is in order to the part-time farmers of Cyprus for their warm hospitality and willing co-operation. I alone am responsible for any errors contained herein. CONTENTS PART ONE INTRODUCTION Page No. 1.1 The objectives of the study. 1 1.2 The Cyprus economy. 4 1.3 The issue in general. 10 • PART TWO THE SURVEY : RESULTS and ANALYSIS 2.1 Sampling and data collection. 16 2.2 Age, education and migration. 20 2.3 Occupation structure. 25 2.4 Land tenure and land use. 31 2.5 Farm productivity. 36 2.6 Non-land resources. 39 2.7 Household indebtedness. 41 2.8 The structure of household income. 44 2.9 The importance of off-farm occupations. 46 2.10 The performance of part-time holdings. 50 2.11 Trends in part-time farming. 56 r, PART THREF, CONCLUSIONS 62 APPENDIX 69 Map 1 The agro-economic regions. Map 2 The sampled villages. Tables A.1 - A.24.. CONVERSIONS AREA 1 donurn 1,600 square yards 0.33 acre 0.133 hectare WEIGHTS 1 oke 1.2 kilograms (kg) 2.64 pounds (lbs) CURRENCY 1 Cyprus pound (EC) 1000 mils 1.2 Sterling pounds (C) 2.34 U.S. dollars (%) (exchange rates are approximate for June 30th 1981) LIST OF TABLES Table number 1. Age structure of part-time farmers, 2. Education of part-time farmers and their families. 3- Migration of children of part-time farmers and the migration propensity of farmers. 4. Occupational structure of part-time farmers. 5- Employment characteristics of farmers. 6. Household farm labour profile. 7. Farmers' contribution to on-farm labour supply. 8. Land tenure : part-time and total farmers. 9- Operated and Irrigated areas : part-time and total farmers. 10. Plots her holding. 11. Mean number of crops per holding. 12. Gross margins for sampled farms. 13. Non-land assets per farmer and proportion of operated area irrigated. 14. Degree and extent of indebtedness, source and purpose of debt. 15. Proportion of household income derived from the farm. 16. Occupational characteristics of part-time farmers. 17. Irrigated area and related characteristics. 18. Fixed assets and gross margins. 19. Indebtedness and fixed assets. 20. Trends in farm income and employment. 21. Reasons for changes in on-farm income as a proportion of total household income. 22. Reasons for changes in allocation of time to on-farm activities. 23. Factors inhibiting increasing agricultural activity. 24. Activity preferences of farmers. 25. Location of farmers experiencing changes in time/income. 26. Characteristics of farmers experiencing changes in income. 27. Characteristics of farmers with changing time allocation. Table number A.1. General economic indicators. A.2. Sectoral economic indicators. A.3. General agricultural indicators. A.4. Proportion of holders with off-farm occupation by agro-economic region. A-5- Grouping of agro-economic regions by zone and sub-zone. A.6. Villages selected according to agro-economic region, locational characteristics and number of farmers interviewed. A.7. Outline of data groups. A.8. Age, education and migration of part-time farmers and their families. A.9. Part-time farmers by category of off-farm occupation. A.10. Employment characteristics of part-time farmers. A.11. Household farm labour profile. A.12. Land tenure (sample farms). A.13. Land tenure (census data for villages visited). A.14. Land use (sample farms). A.15. Cropping pattern. A.16. Production of part-time farmers. A.17. Value of non-land assets per farmer. A.18. Incidence, sources and purposes of indebtedness. A.19. Proportions of income by source. A.20. Trends in farm income and on-farm employment. A.21. Reasons given for changing farm income. A.22. Reasons for changes in farmers' time spent on the farm. A.23. Reasons inhibiting farmers from devoting more time to agriculture. A.24. Preferences concerning occupation and location. PART ONE INTRODUCTION 1.1 The objectives of the study. This study represents the pilot stage of a larger investigation into the characteristics and importance of part-time farming in Cyprus. The research is a co-operative activity of the Department of Agricultural Economics and Management, University of Reading with the Ministry of Agriculture and Natural Resources of the Government of Cyprus. It is probable that Cypriot agriculture has been characterised by the existence of many part-time farmers for some considerable time. It is possible also that the proportion of such farmers has increased following the occupation of part of Cyprus by the Turkish armed forces in 1974, and the consequent flow of refugees to the south. The Agricultural Census carried out in 1977, which was an attempt to re-establish a detailed picture of the rural economy following the disruption caused by the invasion and partition, was in part devoted to an investigation of rural employment. The findings indicated that farmers with off-farm occupations comprised 55.04% of the total. For the great majority of these - 94% - the off-farm occupation was the most important in terms of the number of hours allocated to it. It was also reported that 35.41% of all farmers were not gainfully employed in agriculture, (i.e. occupied), for more than two months of the year. For 1 farmers with no off-farm activity, this figure was 24.66%. Thus the importance of off-farm activity for the productive employment of farmers is apparent. Having established the significance of part-time farming for Cypriot agriculture, it becomes important to investigate the underlying features of their farm and non-farm activities and any associated trends over time. Such an investigation becomes pertinent for the following reasons. Firstly, where part-time farmers are responsible for a significant propor- tion of agricultural production, the design of policies related to the agricultural sector must be such that account is taken of the likely way in - 2 - which such farmers are likely to respond. Thus knowledge of the pattern of production, investment profile and labour use within part-time agriculture is essential. Secondly, where part-time farming is particularly prevalent in specific 2 areas, such as in the mountain and dry-land regions of Cyprus, information concerning the employment pattern of farmers in off-farm activities, and any changes which are occurring over time in the allocation of their labour between activities, provides a necessary backdrop to any plans concerning the stabilisation of population movements and the provision of rural services. Such plans are contained, for example, in integrated rural develop- ment schemes such as the Pitsilia Development Project. Thus a fuller understanding of part-time farming in Cyprus may act as a guideto the shaping of future policies and the determination of agric- ulture's role in the wider economy. It is against this background that the project was conceived. Designed 3 as a two-stage project, this report represents completion of the first part. This initial stage, which comprises a survey of part-time farmers undertaken in August and September 1980, plus this report based on analysis of the survey data, is in essence a pilot stage, designed both to provide an overview of part-time agriculture in Cyprus, and the necessary material for the identification of those important and relevant characteristics of part-time farmer activity which the second stage should be orientated towards. Thus it is primarily concerned with the occupational pattern, resource endowment and investment profile of the farmers. The second, and main, stage of the project will entail a more compre- hensive and in-depth investigation of appropriate aspects of these relevant characteristics, following the findings and recommendations of this study, for the purpose of guiding future policy decisions. Part I of the study contains a general introduction to the economy of Cyprus and the position of agriculture within it, plus a theoretical discussion of the principal underlying issues related to part-time farming. Part II presents the main findings of the survey plus analysis of the information acquired, whilst Part III attempts some tentative conclusions. The main body of statistical data is contained in an Appendix. 1.2 The Cyprus Economy An eastern Mediterranean island of some 3572 square miles, Cyprus, or the Island of Aphrodite, has a total population of 620,000 people. Of these approximately eighty per-cent are Greek Cypriots, who, since the Turkish invasion of 1974, are confined to the southern part of the country, whilst the Turkish Cypriots live in the northern 38% of the island currently 4 occupied by the Turkish armed forces. 5 Since the 1974 invasion the life and economy of Cyprus has under- gone severe disruption, being effectively partitioned and suffering from 6 the displacement of large sections of the population.
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