Part-Time Farming in Cyprus

University of Reading Department of Agricultural Economics & Management

GIANNINI FOUNDATION 0 AGRICULTURAL EWOMIC LIBRA çr 146C s 198 5

PART-TIME FARMING IN CYPRUS

D. J. ANSELL C. BISHOP M. UPTON

Development Study No. 26

1984 Price £3.00 PART-TIME FARMING IN CYPRUS

D. J. ANSELL C. BISHOP M. UPTON

Department of Agricultural Economics and Management, University of Reading.

Development Study No. 26 1984. TABLE OF CONTENTS

Page

ACKNOWLEDGEMENTS

SUMMARY ii-ix

CHAPTER ONE: INTRODUCTION AND TERMS OF REFERENCE 1

CHAPTER TWO: THE ECONOMY OF CYPRUS AND THE ROLE OF AGRICULTURE 3 2.1: Background and Economic History 3 2.2: Recent Economic Performance 5 2.3: Labour and Employment 7 2.4: Agriculture in Cyprus 11 2.5: Agriculture's Place in the Economy 15 2.6: Agricultural Policy in Cyprus 16 2.7: The Fourth Emergency Economic Labour Plan 1982-1986 17 2.8: Part-time Farming and Economic Development in Cyprus 19

CHAPTER THREE: A REVIEW OF PART-TIME FARMING 20 3.1: Importance and Diversity of Part-time Farming 20 3.2: The Part-time Farm Household 34 3.3: Policy Issues 46

CHAPTER FOUR: THE INCIDENCE OF PART-TIME FARMING IN CYPRUS 49 4.1: The 1977 Census of Agriculture 49 4.2: The Agricultural Statistics Survey 50 4.3: The Farm Management Survey, 1981 53 4.4: Village and Farmer Studies 54

CHAPTER FIVE: THE CHARACTERISTICS OF PART-TIME FARMING 59 5.1: Farm Size and Structure 59 5.2: Farming Systems and Intensity 65 5.3: Labour Use and Capital Investment 68 5.4: Summary 71 Page

CHAPTER SIX: OFF-FARM OCCUPATION 73 6.1: The Incidence of Off-farm Work 73 6.2: Days Working by Operator and Family Members Off- and On-farm 73 6.3: Sector of Employment 75 6.4: Employment Status 75 6.5: Formal Qualifications and Training 76 6.6: Off-farm Income 76 6.7: Work Location 79

CHAPTER SEVEN: PART-TIME FARMERS AND RURAL SOCIETY 80 7.1: Family Characteristics 80 7.2: Education and Training 81 7.3: Residence and Migration 82 7.4: Farmers' Motivation and Commitment to Part-time Farming 85 7.5: The Motivation for Continuing to Farm Land 85 7.6: Conditions under which Farmers would Cease Farming 86 7.7: Farmers' Preferred Employment Status 87 7.8: Plans for Succession 88 7.9: Outlook for Part-time Farming 88 7.10: Communication Media 88

CHAPTER EIGHT: POLICY CONCLUSIONS 91 8.1: Summary of Findings 91 8.2: Objectives of Government Policy 96 8.3: The Contribution of Part-time Farming 98 8.4: Policy Options 100

APPENDICES 106

REFERENCES 115 ACKNOWLEDGEMENTS

This research was funded by the Overseas Development Administration of the Foreign & Commonwealth Office and the Government of Cyprus, and we thank them both.

Many individuals and institutions have helped us during this research project. In particular, we would like to mention the Minister of Agriculture and Natural Resources, Dr. D. Christodolou, the Director General of that Ministry, Dr. S. Papasolomontos, and the Director of Agriculture, Dr. A. Louca. Throughout the project, we have worked closely with Mr. P. Aristotelous and his staff in the Economics Section of the Ministry of Agriculture. They all helped both in guiding our researches and in handling the administration and logistical tasks.

The field work was carried out in collaboration with Mr. C. Polycarpou and Mr. C. Kaloyeropolous, who were both seconded to the project. Mr. Kaloyeropolous also helped with data analysis in Reading.

We are grateful to Mr. S. Papachristodolou and his team at the Agricultural Research Institute in Nicosia, who kindly included extra questions on part-time farming in their already extensive surveys, and who unselfishly made available to us much data that they had already collected.

We also had many fruitful contacts with Dr. Aristidou, the Director General of the Planning Bureau, and Mr. C. Apostilides on his staff, who helped us to relate this study to the wider issues of economic growth and development in Cyprus.

Another major input was provided by Mr. Phillipides in the Department of Statistics and Research, Ministry of Finance, who also extended his own statistical enquiries in order to help us.

Mrs. Kitcher in Reading had the unenviable task of deci- phering the hand writing of three separate authors and producing the typescript from which this report is prepared.

Our thanks, are above all due to the several hundred Cypriot farmers, who showed patience and courtesy whether they were interrupted from work on their farms or refreshment in their. coffee shops.

If there are errors of fact or interpretation, it is in spite of, not because of, the efforts of those listed above.

David Ansell Clare Bishop Martin Upton. SUMMARY

1. Introduction and aackground

Part-time farming is of major significance in Cyprus. The last census of agriculture (1977) showed that 54% of all agricultural workers had an additional off-farm occupation. For the great majority of these part-time farmers (94%), the off-farm employment represented the main occupation.

It was with this situation in mind that the Government of Cyprus invited the Department of Agricultural Economics and Management, University of Reading, to undertake studies, in collaboration with local staff, into the characteristics and economic importance of part-time farming in Cyprus.

A pilot study was done in 1980 with the financial assis- tance of the Barclays Bank Development Fund, and the second, main phase was launched in August, 1981. This was financed by the Overseas Development Administration, UK, and the Ministry of Agriculture and Natural Resources, Cyprus. The objectives of this phase of the work were as follows:-

(i) To investigate the role of part-time farming in the development of the agricultural sector and the whole economy. (ii) To compare patterns of production, investment and employment on full- and part-time farms in order to assess whether pluri-activity represents an efficient use of scarce resources. (iii) To study social and cultural features of part- time farming, such as the links created between urban and rural society, the effect of family structure, farmers' attitudes and whether part- time farming helps in stabilising rural populations and maintaining viable village society.

2. Agriculture and Economic Development in Cyprus

Cyprus has had a colourful history. Situated at the eastern end of the Mediterranean, it has played an important part in developments in that area, and has hosted a series of invasions. In 1878 it became a British Colony, and achieved independence in 1960. Following constitutional disagreements between Greek and Turkish factions, the Turkish army invaded in July/August, 1974, and the island remains divided, with a government controlled area in the south and the northern part occupied by the Turkish army and controlled from the Turkish -Mainland.

Despite these difficulties the Cypriot economy has been buoyant. Growth rates have been high and unemployment low. The main recent economic problems have been periods of high inflation and Balance of Payments difficulties. The leading sectors in the economy are agriculture, tourism and light manufacturing (particularly clothing). The expansion of the EEC to include more countries producing Meditteranean type agricultural products and increasing competition from N. African producers threatens traditional markets for agricultural exports. The most important agricultural crops in relation to export earnings are potatoes, citrus fruits and vine products of various kinds.

Agriculture in Cyprus is highly diversified and a large range of temperate and tropical crops are grown. Most forms of commercial livestock are also represented. For the purposes of farm classification four agro-economic zones have been identified. This study refers frequently to these zones. They are as follows:-

The Coastal Zone

The most varied and productive of the zones. In the south east is the island's main concentration of potato production, with about half of all the agricultural land under irrigation. Moving westwards, areas of more general cropping are encountered - vegetables, cereals and perennial crops, mainly citrus. In the extreme west the land is divided about equally between annual and perennial crops, which include tropical crops like bananas. About half the national sheep flock are maintained on this zone and about one quarter of the goats. It is also a large producer of dairy products.

The zone contained at the last census (1977) 12,500 holdings, or 30% of all holdings in Cyprus. Average size of farm is 26.4 donums.*

The Dryland Zone

Mainly cereals, but where irrigation is possible, vegetables are grown. (Overall, 11% of the area is irrigated). It is the main livestock production area in the country. There are some important tree crops like olives and carobs, although the latter have declined in their pre-eminence. There are about 16,000 holdings, with average farm size 33.4 donums.

The Vines Zone

This zone is centred on the lower south and west facing slopes of the Troodos massif and is devoted almost exclusively to the production of wine grapes. Much of the land is steep sloping, so terracing is often necessary, fields are small and the use of large machinery is impossible. The livestock population is small. Average farm size is 30 donums.

*1 donum = one third of an acre. -iv-

The Mountain Zone

This is the poorest area of Cyprus. Holdings are small, the average size is about 10 donums. Wine grapes are the most important crop and there is a wide range of deciduous fruits - apples, cherries, pears and peaches. There are small areas of cereals, fodder and vegetable crops grown on terraces.

Government Policy is based on the assumption that agriculture will remain a large sector of the economy and will be a main export earner. The current economic plan (1982-1986) stresses the need to improve productivity in agriculture. This is to be achieved mainly through the development of irrigation schemes and through the creation of 'viable, consolidated and modern farm units'. Rural development is seen as a separate issue. Long-term rural policy is to maintain a balance of activities in rural and urban areas. Differentials in living standards between rural and urban areas need to be reduced and the more productive employment of the rural labour force through the creation of additional sources of income in the countryside.

It is clear that it is important to establish the effects of part-time farming on agriculture and the economy more generally. Two obvious questions, for example, are firstly, what is the effect of part-time farming on land and labour productivity and secondly, what contribution does part-time farming make to the income of rural people?

3. The Importance and Diversity of Part-time Farming

This study of part-time farming is not an isolated one. There is an increasing awareness of and interest in the part- time farming phenomenon. "Part-time farming is a feature of agriculture in all countries no matter what their stage of development, economic system, political creed or culture" (Gasson, 1983). It is a practically universal characteristic of farming in advanced industrial societies, and there is increasing evidence of its ubiquity in many parts of the developing world (Eicher and Baker, 1982, Anderson and Leiserson, 1978). Not only is part-time farming currently commonplace but it appears to be growing in importance. Studies have confirmed this in the USA and Japan.

Perusal of the literature suggests that there is no single universally-accepted definition of part-time farming and that it has many characteristics. There are, however, three broad sets of criteria for classifying part-time farms based on (i) the size of holding and its labour requirements, (ii) the actual allocation of labour between different occupations, (iii) the proportion of income derived from farming. The latter two criteria could be based on the head of household alone or the whole family. The criteria used will depend largely on the objectives of the study. As labour shortage is said to be an important constraint on economic growth in Cyprus, the allocation of labour between farm and non-farm activities -v-

is the criterion that has been used in this study.

The significance of part-time farming is that it is an aspect of structural change which is part of the process of economic development. In the countries which have already reached late stages of development part-time farming may be seen as one response to declining incomes from agriculture, and an alternative to total migration out of the sector. In developing countries, where the absolute size of the rural population continues to grow, part-time farming or rural pluri-activity may be more associated with declining agricultural resource availability, particularly land (and water) as population pressure mounts. The questions posed by the growth of part- time farming include its impact on factor productivity, particularly land and labour, its effect on farming systems, technology adoption and husbandry practices and its effect on migration and the vitality of rural communities.

4. The Incidence of Part-time Farming in Cyprus

This study is based on a number of data sources. These include the 1977 Agricultural Census, The Agricultural Statis- tics Survey, which is an annual enquiry based on a sample of about 2,000 farms, The Farm Management Survey, launched in 1980 and covering 190 farms and a special survey carried out jointly by Reading University and the Ministry of Agriculture, Cyprus, . on part-time farming, which was undertaken between February and November, 1982.* This survey was based on six clusters of villages, purposively chosen in the Coastal, Dryland and Vines Zones. The Mountain Zone was not covered as it was the subject of a separate study carried out by the Extension Division of the Ministry of Agriculture in Cyrpus. The total number of farmers in the survey was 184. In estimating the incidence of part-time farming, the following categories have been used:

Group A: Full-time farmers (with no off-farm work). Group B: Farmers with part-time off-farm work (Between 0 and 9 months of off-farm work). Group C: Farmers with full-time off-farm occupations (9 months or more devoted to off-farm work). Group D: (Used for some purposes only). Farmers aged 65 or over.

The percentages falling into these groups, according to the Reading-Cyprus Survey are as shown in the table overleaf.

These results show a higher incidence of part-time farming than earlier estimates, which have tended to show that about 40% of farmers had no other occupation. The proportion of full-time farmers being rather higher in the Coastal and Dry- land Zones than in either of the other two. There are two possible explanations for the higher number of part-time farmers in the Reading-Cyprus Survey. Either the numbers have increased markedly in the last year or two, or earlier

*Hereafter referred to as the Reading-Cyprus Survey. -vi-

Incidence of Part—Time Farming by Village Cluster

Dhali Pakhna Kouklia Erimi Kiti Xylophagou Total Coastal Coastal Coastal Coastal Dryland Vines

Full—time farmers 25 10 17 42 13 10 20 Part—time off— farm 16 14 14 23 30 23 19 Full—time off— farm 53 77 59 32 47 50 53 Over 65 years 6 3 10 3 10 17 8

surveys (none of which were specifically concerned with the issue) underestimated the extent of part-time farming. Whilst the Reading-Cyprus Survey itself, plus other evidence, suggests that part-time farming is increasing, it seems likely that its prevalence has been previously underestimated. What- ever its precise extent, it is clear that part-time farming is a very important feature of the agricultural scene in Cyprus, and is likely to remain so.

5. A Summary of Survey Findings

Land Inheritance and Succession

A major cause of the prevalence of part-time farming is the system of land inheritance. The single most important route into part-time farming was by receiving land from parents or as a dowry whilst fully employed in off-farm work. The area inherited was rarely large enough to make a viable full-time holding. Most respondents proposed to divide their holdings equally among their children.

Farm Sizes

Generally speaking, full-time farmers operate a larger area of land than those with full-time alternative occupations. There is no clear distinction between those with part-time off- farm occupations and full-time farmers.

Farming Systems

Farming systems are adapted to operator status. Within each zone full-time farms are operated more intensively than part-time ones. This is particularly marked in the Coastal Zone. Intensity has been measured by such indicators as double cropping, investment in greenhouses and irrigation equipment and in some zones, proportion of land under double cropping. Part-time farmers leave a larger proportion of their land uncropped, and tend to concentrate on permanent crops, such as fruit trees and vines which have relatively low labour requirements over much of the year.

Capital Investment and Labour Use

The amount of capital invested per holding is greatest on full-time farms but may be higher per donum on part-time farms. There is some evidence that part-time farmers invest more heavily in mechanised equipment as a substitute for labour. There is no evidence, however to suggest that the labour of other family members, or hired labour is substituted for the operator's labour when he has an off-farm job.

Relative Productivity of Part-time Farming

As a rough guide to resource productivity in agriculture farm income per unit of land, labour and capital have been compared between full- and part-time farmers. In practically all cases the return per unit of resources decreases with increased off-farm activity. This is, of course, a crude measure of productivity and gives only limited guidance as to the effect of changes at the margin, but it does suggest that a transfer of resources from part-time to full-time farming, involving amalgamations and displacement of part-time holders would increase agricultural value added.

Total Work Output of Part-time Farm Families

The number of days spent on the farm per year by the operator diminishes with increasing commitment to off-farm occupations but the total number of days worked increases substantially. The total work output (in days) of those with full-time off-farm work is more than twice that of full-time farmers. Furthermore, the wives and other family of part- time farmers are more likely to undertake off-farm work. These results show some under employment, or disguised unemployment, on full-time farms which may be explained by the relatively small average farm size and in part by the seasonal nature of farm work.

Incomes of Part-time Farmers

The total income from all sources appear higher for full- time farmers than part-timers in the Coastal and Dryland Zones but vice-versa in the Vines Zone. This suggests that in the Vines Zone part-time farming is a response to overall low income generating potential of agriculture, whereas in the other zones, it is those farmers with small, uneconomic farms who are forced into part-time farming.

Off-farm Occupations

A high proportion of off-farm occupations are found in agriculture, the construction industry and in retailing. These are all sectors where there may be seasonal variations in the work load and where labour productivity is often low. However, when these occupations are combined with farming, labour may be more fully employed. Attitudes to Part-time Farming

Most part-time farmers are anxious to continue farming and would prefer to be farming full-time given the necessary resources. Few are willing to sell land. Many feel under a traditional obligation to cultivate their inherited land or derive personal satisfaction from doing so. Most hope to remain living in their village when they retire (even those currently living in towns). Since these attitudes are widespread, it seems likely that part-time farming will continue to be an important feature of Cypriot agriculture.

6. Policy. Implications

The evidence suggests that part-time farming is likely to have an inhibiting effect on the intensification of agriculture. The emphasis of current plans on the development of irrigated agriculture may encounter problems. If, however, irrigation could be combined with land consolidation so as to provide holdings with the capacity to generate an adequate level of household income there appears no reluctance among farmers to operate on a full-time basis. Indeed, most farmers suggest they would prefer to do so.

Part-time farming will also affect the composition of production. It will tend to discourage the production of vegetable crops, all glasshouse crops, any crop grown under irrigation and most livestock systems. It will lead to a bigger increase in perennial tree crops than would otherwise be the case. If there are scale advantages to be earned, and this is likely to be the case where mechanisation can be profitably exploited, part-time farming slows up structural adjustment and so perpetuates high cost production.

Part-time farming does seem however to lead to an efficient use of labour. Total family labour inputs on part-time farms are greater than on full-time ones. The supply of labour to other sectors of the economy, is mainly unskilled, low cost labour of the type which is expected to be scarce in the future. It should not however be regarded as a means by which female participation in the labour force is augmented. There is a greater input of wives' labour on full-time farms than on part-time ones. There are comparatively few examples of wives working off the farm.

The conclusion from all this may be that part-time farming leads to a reduction in land productivity but an increase in labour productivity. The attitude of policy makers towards the issues depends on how agriculture's role in the economic development of the island is perceived. This in turn will hinge on the growth prospects of other sectors. If increases in total agricultural output, particularly of export crops, are a high priority, then part-time farming will impede the attainment of that objective. If, on the other hand, other sectors are likely to take the lead in generating income and export earnings, and if labour shortages are likely to constrain the pace of their growth, then part-time farmers provide a useful source of low cost labour, at the cost of some loss in agricultural production.

It is acknowledged that earnings in agriculture, both from employment and self-employment, tend to lag behind equivalent rates in other sectors. It is clear from this study that part-time farming is a result of the low income earning potential from farming. In the Vines and Mountain Zones this is a result of general low farm incomes from holdings of the type found there, whereas in the Coastal and Dryland Zones it is a result of farm structure. In these latter areas it is then a self-perpetuating process. Reluctance to sell land and become entirely dependent on non-farm income forces the next generation of farmers to pluri-activity.

The overall effect of part-time farming on income distribution and the incidence of poverty is complex. Whilst labour is scarce within the economy, part-time farming probably widens income differentials. It prevents the emergence of larger, more profitable farms particularly in the Coastal and Dryland Zones and it provides a pool of unskilled, unorganised labour, part of whose subsistence is already met from their farming activities. The effect may be to reduce non-agricultural wage rates. If, however, the situation arises when there is a surplus of unskilled labour, and Cyprus must be one of the very few countries where this is not the case, then retaining an income source in agriculture will be an advantage for unskilled and untrained workers.

All the evidence of this study suggests that part-time farming will persist; maintained by attitudes towards inheritance, dowry and the Cypriot's wish to own land. The characteristics of the part-time farmer will change however. Improvements in education and training facilities, and the fact that most farmers' children are already embarked on full-time, non -farm jobs will increase the number of urban-based farmers, farming either for a hobby or out of a sense of obligation. The need to maximise income from farming may diminish as per capita incomes rise and the marginal choice between income and leisure moves in favour of the latter.

As part-time farming is now a transitory phase and as another equity objective is to maintain a regional balance, the contribution of part-time farming to regional development becomes important. Farming in the Vines and Mountain Zones is not, on the whole, capable of generating income levels which are likely to keep pace with the growth of income elsewhere. If rural de-population is to be avoided, therefore, opportunities must exist for non-farm income. On the other hand, the existence of part-time farming may constitute a life-line for those areas. -1-

CHAPTER ONE

INTRODUCTION AND TERMS OF REFERENCE

1 Cyprus is a middle income country with an agricultural sector which is undergoing considerable structural changes, aggravated in recent years by dislocation and large population movements, arising from the occupation of the northern part of the island.

It has long been realised that part-time farming (sometimes called rural pluri-activity) is common. This has been confirmed by Agricultural Censuses.

The precise extent of part-time farming is difficult to specify. Questions of definition become important. How should 'part-time' farm or farmer be defined, and what is the population of farms or farmers of which they represent a part? Should all holdings be included or only those which are in some sense viable?

In addition to questions concerning the incidence of part- time farming, there are others concerning its effect on agricultural productivity, the size and vitality of rural communities and the pace and characteristics of economic and social development in general, and other important questions for policy makers.

It was with these considerations in mind that the Govern- ment of Cyprus invited the Department of Agricultural Economics and Management, University of Reading, to undertake studies, in collaboration with local staff, into the characteristics and economic importance of part-time farming in Cyprus.

The first phase of the work was a pilot survey of part- time farmers, financed by Barclays Bank Development Fund. This work was carried out during August and September, 1980, by Richard Pearce of Reading University and Harris Zannetis of the Economics Section of the Department of Agriculture in Cyprus.

1 This study refers to Government controlled area of Cyprus. The area currently occupied by the Turkish army is not considered in any of the statistics or discussion. This study confirmed the high incidence and persistence of part-time farming and demonstrated the diversity of its nature and causes (see Pearce, 1981; Upton, Bishop and Pearce, 1982; Upton and Pearce, 1982). It also emphasised the value of more detailed investigations and the need to undertake a comparative study covering both full- and part-time farmers.

Thus, the second phase of the main study, financed by the Overseas Development Administration (COP) and the Ministry of Agriculture and Natural Resources (MANR), Cyprus, was launched in August, 1981. Its objectives were:-

(i) to investigate the role of part-time farming in the development of the agricultural sector and the whole economy; (ii) to compare patterns of production, investment and employment on full- and part-time farms in order to assess whether pluri-activity represents an efficient use of scarce resources; (iii) to study social and cultural features of part-time farming, such as the links created between urban and rural society, the effect on family structure, farmers' attitudes and whether part-time farming helps in stabilising rural populations and maintaining viable village society.

This report is based on extensive survey work, carried out between October, 1981, and December, 1982.

Chapter Two contains a description of Cyprus, its economy, the agricultural sector and the main objectives of Government policy.

Chapter Three is a review of the literature on part-time farming. This is included for two main reasons. Firstly, to put the Cyprus situation into an international context, and secondly, to describe and review the issues that other authors have deemed important in connection with part-time farming.

The remaining chapters report on the findings of the research work in Cyprus, and suggest policy implications which follow from them. CHAPTER TWO

THE ECONOMY OF CYPRUS AND THE ROLE OF AGRICULTURE

2.1: Background and Economic History

Cyprus has a long and varied history. Situated at the eastern end of the Mediterranean it has played an important part in developments in that area. The influence on Cyprus of Greek religion, language and ways of life date back to the 2nd milleneum BC, but subsequently a whole series of invaders from Persia, Rome, Byzantium, Venice and Turkey have influenced the development of the island.

In 1878 Cyprus was ceded by the Turks to Britain, and British rule lasted until 1960, when the island became independent and was declared a Republic. In July/August, 1974, following constitutional difficulties Cyprus was invaded by the Turkish Army. The island remains divided with the government controlled area in the south and the Turkish controlled area in the north.

Agriculture has always been an important part of the economy, partic- .ularly in its contribution to export earnings. In the early days of British rule, the chief exports were wine, silk, carobs, hides, wool, cereals and cotton. As the 19th century moved to a close, external factors caused changes in the export earning potential of some of those crops. Cereal prices fell as cheap grain became increasingly available from the New World, and wine and carob prices also fell on international markets. At the turn of the century Cyprus' fortunes stood at a rather low point.

The British increased investment in the island between 1 900 and 1941, and much essential infrastructure: railways, roads, harbours and water supplies, were established. The Cyprus Mines Corporation started in 1905 and asbestos became an important export. The period up to the beginning of the First World War also witnessed the establishment of small, sometimes cottage, industries. It was during this period, also, that the potato crop was established. The main export crops remained however carobs, wine and grape products and cereals, plus some irrigated crops such as fruit and vegetables. The UK, Egypt, France and Turkey were the main destination of exports.

The war-time years were, on the whole, prosperous ones in Cyprus as disruption in Europe removed other sources of agricultural products, but the great depression that followed brought inevitable consequences, with falling export prices and depression in rural areas. Cyprus, however, does not seem to have been as badly affected as some parts of the world. Some diversification, particularly into mining, and remittances from workers who had emigrated, reduced the dependence of the economy on agricultural exports.

The Second World War established Cyprus as an important strategic area and the scale of investment increased dramatically. The emergence of the Middle East as an area of great political and economic influence and interest has meant that the strategic significance of Cyprus has been sustained.

The first ten years after the end of the war were marked by rapid economic growth with the share of agriculture in the economy declining. Much of the growth was in public sector activities which provided a stimulus for later growth in the private sector.

The most buoyant of agricultural sub-sectors were fruits and other irrigated products. The amount of food processing however was quite small and limited to the traditional crops, although the development of co- operatives, particularly wineries during this period, led in the longer term to an increase in the amount of domestic value added to agricultural products.

The period of rapid economic growth which had been as high as 8.8 per cent (at current prices) during the early 1950's ended with the pre-independence unrest and during the second half of that decade, growth rates fell to about 1.5 per cent per annum from 1956-59.

"At the time of independence in 1960, income stagnation, the trade imbalance, uncertainty and the unstable political environment, the flight of capital that occurred and increased emigration did not encourage optimism regarding the future development of the island", (Apostolides, 1980).

This pessimism however proved ill-founded and in the decade following independence real economic growth averaged 7.0 per cent per annum. Agric- ulture played a full part in this expansion and maintained its share of GDP. The expansion of the irrigated area was the main source of agricultural growth. Cyprus became again (as it has been until the late 1950s) a net exporter of agricultural products and the growth of the manufacturing and food sectors also contributed to a favourable trade balance. 2.2: Recent Economic Performance

The Turkish invasion in 1974 caused major dislocation and per capita GDP fell by 19 per cent in real terms in 1974, and a further 16 per cent in 1975. Since then, however, a remarkable recovery has taken place as is shown in Table 2.1.

In Table 2.2 increase in Gross Domestic Product is shown by sector. Not surprisingly, the construction industry showed the greatest post- invasion boom as large-scale reconstruction was done in the south. This has slowed as time has passed.

In 1980, per capita GNP was £01 ,200 at current prices. The average dollar exchange rate in 1980 was E01 = US$2.8, which means that per capita GNP in US$ for that year was $3,360. If compared with other countries, Cyprus would be towards the top end of the middle income group of countries, with a very similar GNP/head to other island economies like Singapore and Hong Kong ($3,830 and $3,760 respectively), and rather lower than other Mediterranean countries like Greece ($3,960) and Spain ($4,380), but well above Turkey ($1,330).

The future prospects for the economy are more than usually uncertain. The two emergency plans which followed the 1974 invasion succeeded in replacing much of the productive capacity that had been lost. This had a cost in the emergence of rapid wage inflation and balance of trade deficits.

The RPI moved up by 13 points between 1979-80 and over the whole period 1974-80 the RPI increased by 36 per cent. With money wages increasing by 150 per cent there was a substantial increase in real earnings across all sectors of the economy.however.

The most serious effect of the boom was the widening of the trade gap. The current account deficit more than doubled betweeh 1977 and 1980, which necessitated a big increase in borrowing.

Stabilisation became the priority between 1 979 and 1981, and a slow down in growth had to be accepted. A five year plan 1982-86 has now been embarked upon. At the moment the main pillars of the economy are agriculture, tourism and the production of labour intensive, low technology industrial exports. These will continue to be important sectors of the economy, but growth prospects are uncertain. The agricultural sector, of which more will be said, faces difficulties in maintaining export earnings as competition grows for European and Middle Eastern markets. The expansion of the EEC to include more countries producing Mediterranean type -6-

Table 2.1: Par Capita GNP at Constant (1973) Prices

Per Capita GNP Rate of Increase over EC Previous Years

1973 537.0 1974 440.0 -17.3 1975 378.6 -14.7 1976 450.2 18.9 1977 533.6 18.5 1978 579.1 8.5 1979 616.4 6.4 1980 633.7 2.8

Source: Statistical Abstract 1979-80, Statistics and Research Department, Ministry of Finance.

Table 2.2: Percentage Annual Increase of Gross Domestic Product by Sector of Industrial Origin. At constant factor cost of 1973(%)

Sector 1974 1975 1976 1977 1978 1979 1980

1. Agriculture, forestry, fishing & hunting 17.3 -23.2 8.4 0.2 -1.0 5.5 5.0 2. Mining & quarrying -27.6 -25.0 7.9 5.9 2.8 2.7 -1.3 3. Manufacturing -23.8 -12.4 29.4 16.6 10.1 7.9 7.1 4. Electricity, gas & water-14.3 -18.7 17.9 8.7 8.0 7.4 3.4 5. Construction -35.7 -36.9 36.9 48.5 20.5 15.3 1.7 6. Transport, storage & communication -23.1 -6.2 25.3 18.1 5.9 10.2 10.4 7. Wholesale & retail trade-27.9 -23.7 35.0 22.3 8.7 10.1 1.2 8. Banking, insurance & real estate -35.4 -33.9 51.3 24.3 21.7 8.0 -1.6 9. Ownership of dwellings -10.5 -13.2 1.6 4.3 5.6 6.8 7.3 10. Public administration & defence 6.3 9.0 4.1 -2.2 -1.8 3.7 10.6 11. Services -15.5 -22.9 10.7 12.5 8.6 11.1 5.8

Source: Department of Statistics and Research, Ministry of Finance, Cyprus; Economic Report, 1980.

agricultural products (particularly Spain) might haVe serious implications for agricultural exports, depending to some extent on how Cyprus' own relationship with the EEC develops.

At the moment 70 per cent of Cyprus' agricultural exports enter EEC 'countries and most of the rest go to the Middle East. In addition to possible problems concerning the availability of markets (and 74 per cent of agricultural exports are potatoes and citrus fruits) there may be difficulties in the maintenance of the flow of export products. The -7-

potato industry, concentrated in the south east of the island, is already facing problems with falling groundwater levels, and although ambitious long-term plans have been formulated for the conveying of water to the south east from the mountains, actual implementation of this is only just beginning.

Tourism is a volatile sector. Tourists are deterred by political instability, exchange rate variations and other changes in the international economy. Cyprus has been very successful in re-structuring its tourist industry following the 1974 invasion, and it is estimated that it now accounts for about 10 per cent of total employment, and 21 per cent of all foreign exchange receipts from goods and services.

Although some further growth in the number of tourists is anticipated, the industry may encounter problems both with manpower and the environmental impact of rapid spread of tourist infrastructure.

The third main pillar of the economy, labour intensive, low technology manufacturing, may encounter increasing competition from the growing industries in the new industrial countries of South East Asia, although the problem of labour shortage seems to have receded.

So, although Cyprus has performed very well in re-structuring and relocating its economic activities it cannot be complacent about the future. The two most important economic problems would seem to be: (i) to maintain and increase the flow of export earning goods and services, and (ii) to overcome a labour constraint which threatens to slow down the rate of economic expansion. The trade issue has been discussed earlier, but some further discussion of the labour supply issue is warranted as it has important implications for part-time farming.

2.3: Labour and Employment

Various aspects of the labour market have received much attention in Cyprus during the last few years. It has been generally concluded that shortages of labour might well be the most binding constraint on economic development in the future. There are of course shorter-term variations in the demand for labour, and the current recession means that pressure has come off the labour market. Taking a longer-term view, however, it has been suggested that the following characteristics prevail:- (i) A shortage exists for skilled blue-collar workers in the manufacturing and construction industries. -El-

(ii) There are growing numbers of graduates from third-level education institutions who are unemployed. (iii) The female labour force participation rate is low and needs to be increased. (iv) Attempts should be made to increase fertility rates in order to augment labour supply in the long run. (v) The agricultural and retailing sectors are hoarders of under-employed labour which needs to be dislodged. (vi) Notwithstanding (i)-(v) the wholesale depopulation of the countryside is to be avoided.

Many of these issues have been studied and debated at lenoth. House, for example, has suggested that the absolute number of outstanding vacancies is small, and even for construction workers excess demand is less than 2 per cent of total sectoral employment (House, 1982).

Table 2.3 shows House's labour force projections for the period 1982- 86. Job openings are filled in an order dictated by pay and other non- financial advantages. The excess demand is thus apparent in the jobs where the total advantages are deemed to be least. For low educational groups this would be for agricultural labourers.

The other labour issues are tangential to the central balance between supply and demand. Female labour force participation rates are low. The mean (urban and rural) female LFPR was 38.6 per cent in 1980. The rural rate was 44.4 and the urban 34.3. Women play a very important part in the supply of labour to the agricultural sector. House calculates that 54 per cent of the labour force are women, and relatively old women at that. Participation is positively related to age in rural areas, but inversely in urban areas after the age of 50. 86 per cent of the sector's female labour force are unpaid family workers. The full age-specific participation rates are shown in Table 2.4.

As House points out, the low participation rates of younger rural women could be serious in the longer-term. If there is a generation effect and younger women with better education are no longer prepared to undertake arduous farm work, then farm labour supply could shrink dramatically. It could, on the other hand, be a reflection of greater maternal responsibilities among the younger age group.

It should be noted that there is an element of contradiction in policies which aim both to increase female labour force participation and policies aiming to increase fertility rates.

The desire of the Government to avoid depopulation of rural areas may conflict with the need to transfer labour from 'low productivity' Table 2.3: Projected Manpower Balance for the Period 1982-86

EDUCATION

Secondary or Less Post-Secondary University Total Vocational Graduates Demand Supply 5-D D 5 S-D D S S-D D 5 D 5 ,

Administrative 497 497 0 71 71 0 221 221 0 789 789 Professional - - - 1,962 1,962 0 2,398 2,398 0 4 360 4 360 Clerical 4 066 4,066 0 320 320 0 18 182 0 4 568 4 568 Sales 2,925 2,925 0 94 94 0 126 126 0 3,1 1+5 3,11+5 Service 3,997 3,997 0 1,279 974 -305 53 53 0 5,329 5,021+ Production 12,'+07 12,407 0 792 0 -792 _ _ - 13,199 12,1+07 Unskilled 1 579 1,579 0 ------1 579 1 579 Agricultural 3,239 2,692 -547 66 0 -66 - - - 3,305 2,692 EXCESS SUPPLY ------3,993 3,993

TOTAL 28,710 28,163 -547 4,585 3,421 -1,163 2,980 6,973 3,993 36,274 38,557

M -1 I -L---- c______t 7--1-"----1- C • • r 4.- lnoc TM n ,--1* --p -1-1-,,, Workshop on the UNFPA ILO Project, Population, Employment Planning and Labour Force Mobility, Department of Statistics and Research, Ministry of Finance, Nicosia, Cyprus, 1982. -10-

Table 2.4: Labour Force Participation Rate (%) by Age (Currently Married Women) and Location, Cyprus, 1980

A G E 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-59 60+ Mean

Urban 13.3 44.3 41.7 41.4 45.0 37.9 37.4 27.0 9.4 34.3 Rural 21.1 19.7 33.6 58.4 53.8 61.4 64.8 57.5 31.5 44.4 Total 17.7 34.2 38.6 40.3 48.3 46.9 48.1 40.0 21.8 38.6 Source: House, op cit. agriculture to 'high productivity' industry. There is a contradiction in Government offering guaranteed and high prices to maintain farm incomes and enabling marginal farmers to survive and simultaneously needing to encourage a reduction in the agricultural labour force.

It is possible however that Cyprus may be able to enjoy the best of both worlds. Distances from the remotest rural hinterland to the main urban centres are small enough to permit commuting although this may involve a long day with substantial unproductive travelling time.

Part-time farming may also contribute to a solution. If people continue to wish to live in rural areas, mainly to tend their farms, after they have become committed to working in the non-agricultural sector, migration will be avoided.

Census data for Cyprus suggests that the absolute size of the rural population was increasing until recently although the relative size has fallen. See Table 2.5.

Table 2.5: Urban, Rural and Total Population 1891-1973

Urban Population Rural Population Total

1891 38,695 18 170,591 82 209,286 1901 44,103 19 192,917 81 237,022 1911 51,973 19 222,135 81 274,108 1921 61,512 20 249,203 80 310,715 1931 76,351 22 271,608 78 347,959 1946 115,808 26 334,306 74 450,114 1960 205,983 36 367,583 64 573,566 1973 266,803 42 364,975 58 631,778 Source: Statistical Abstract 1979-80, Nos. 25 & 26; Statistics and Research Department, Ministry of Finance, Nicosia, Cyprus. -11-

Only between the last two censuses has the absolute size of the rural population started to drop, and then only slightly. Rural residents are not necessarily farmers or farm workers, particularly in a small country like Cyprus, where there are no remote rural areas. An inspection of employment data however tends to confirm that the numbers dependent on agriculture have continued to increase until very recently. These data are set out in Table 2.6.

Table 2.6: Numbers Employed in Agriculture, Forestry and Fishing 1975-80

Year Nos. Gainfully Employed As a % of Total Gainfully in '000 Employed Population

1975 43.9 21.2 1976 45.2 22.3 1977 45.4 22.6 1978 44.5 22.0 1979 44.7 21.7 1980 43.0 21.0

Source: Statistical Abstract 1979-80, Nos. 25 & 26, Statistics and Research Department, Ministry of Finance, Nicosia, Cyprus.

Table 2.6 shows that there has been little change in the number or proportion of the labour force engaged in agriculture, forestry or fishing between 1975-80.

2.4: Agriculture in Cyprus

Topographically Cyprus is dominated by two mountain systems: the long, narrow Kyrenia range in the north, rising to a height of 3,300 ft. and in the centre, the Troodos range which rises to 6,400 ft. There is a wide fertile plain between the two ranges (the Messaoria Plain) and narrow plains along the coast. Perennial rivers are few and most are not more than channels carrying spate floods and melt water.

For the purposes of farm classification four agro-economic zones have been identified, and these zones are further divided into twenty four regions. See Figure 1.

The Coastal Zone This is the most varied of the zones in terms of farming systems encountered. In the south-east is the island's main concentration of potato production. The deep red soils and groundwater have made this one KEY

Agro-economic Regions 1. Paralimni 2. Kokkinokhoria Mountain zone 3. Larnaca Coastal 4. Larnaca Mountainous 5. Larnaca mixed farming Coastal zone 6. Dheftera 7. Astromeritis — Akaki 8. Solea Vine zone 9. Marathasa 10. Pitsilia Dryland zone 11. Tillyria 12. Nicosia mixed farming 13. Nicosia suburbs 14. Mantarine • Villages visited 15. Coumandaria Limassol 16. Deciduous trees Limassol 17. Vine Limassol 18. Pissouri Limassol 19. Limassol mixed farming 20. Limassol Coastal 21. Vines Paphos 22. Paphos Coastal 23. Paphos semi-mountainous 24. Polis Khrysokhous Coastal

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Pill 1111 111 II 0 10 20 30 40

kilometres

MAP 1. AGROECONOMIC REGIONS - CYPRUS -13- of the most prosperous farming areas in Cyprus. Ninety per cent of the area is under annual cropping and about half of all the agricultural land is irrigated.

Moving westwards along the plain between Larnaca and Limassol, an area of more general cropping is encountered. Potatoes are less predomin- ant and more fodder crops are grown. Perennial crops, particularly citrus also assume more importance. Irrigation water is also generally less abundant. To the west of Limassol the Coastal Zone is divided equally between annual crops, mainly cereals, fodder and vegetables, and perennial crops, mainly vines and citrus. A small proportion of the land is irrigated in this part of the plain. The north-western end of the Coastal Zone is mostly unirrigated cereals and almond plantations. There are plans, however, to develop a major irrigation scheme in the area.

About half the national sheep flock are maintained on the coastal plain and about one-quarter of all goats. It is also a large producer of milk and poultry products.

The Coastal Zone contained, at the time of the last census, 12,500 holdings, or 30 per cent of all the holdings in Cyprus. Average farm size is 26.4 donums.

The Dryland Zone

The biggest part of the Dryland Region lies to the south of Nicosia and to the east of the Troodos massif. The proportion of irrigated land is only 11 per cent and the land is generally more broken with rocky out- crops and thinner soils. The main crop is cereals, but where irrigation is possible, vegetable crops are also grown. It is also the region where most of the carob and olive trees are found, although the economic importance of these has tended to decline.

It is also the major livestock producing region of the country, with 44 per cent of all sheep, 25 per cent of all goats, 88 per cent of all pigs, 60 per cent of all poultry and 65 per cent of all dairy cattle.

There are 15,869 holdings in the Dryland Zone (36 per cent of the total) and average farm size is 33.4 donums, the highest of all regions.

The Vines Zone

This region is centred on the lower south and west facing slopes of the Troodos massif and is devoted almost exclusively to the production of wine grapes. Farm size averaged 30 donums, but there are only half as many farms as in the Coastal or Dryland Zones. Much of the land is steep sloping, so fields are small and usually need terracing. This precludes the use of large machinery so most cultivation is done by single-axle tractors or by hand. The donkey remains an important beast of burden. Otherwise, the livestock population is small, only 5 per cent of the total sheep population, 14 per cent of goats and less than 1 per cent of dairy cattle. It does have the highest number of local cattle, but the total population of just over 2,000 is small.

The Mountain Zone

This region covers the higher slopes of the Troodos Mountains and is the poorest and most remote part of Cyprus. There are about 7,500 holdings with an averge size of only 10 donums. Only 2,185 holdings are reckoned to provide gainful employment for the operator. If this is right, there is a large amount of under-employment.

There are 9,000 donums under temporary crops of which 6,000 donums (65 per cent) are irrigated. A further 68,000 donums are under permanent crops of which 14,700 (21 per cent) are irrigated, mainly from rivers. The temporary crops are chiefly small stands of cereals, fodder and vegetables grown on terraces. The most important crop, as in the Vines Zone is wine grapes which occupy 42,500 donums. The region is distinguished from the Vines Region however by a greater incidence of deciduous fruit trees. Apples are the most important of these tree crops, followed by cherries, pears and peaches.

Livestock are not an important part of the rural economy, although donkeys are used extensively for transportation.

A substantial part of the Mountain Region is now contained within an integrated rural development programme, providing better communications, social services and irrigation water. It may, therefore, change considerably during the next few years.

Summary

Cyprus agriculture is very varied. Farms are generally small, particularly in the Upland areas, they are also highly fragmented as a result of land tenure and inheritance arrangements. Rainfall is low: a thirty year average for Nicosia (Dryland Zone) is 350 mm, for Limassol (Coastal Zone) 458 mm, and Prodromos (Mountain Zone) 1,031 mm. It is also highly variable. During the period 1969/70-1977/80 annual rainfall -15-

in Nicosia varied between 150 and 447 mm. Irrigation water is therefore vital for the production of high value crops. Traditional irrigation methods (bore holes and pumping from rivers) are now being supplemented by more elaborate irrigation schemes. A statistical summary of Cyprus agriculture is given in Appendices A.1-A.5.

2.5: Agriculture's Place in the Economy

As in most growing economies the relative contribution of agriculture to GDP, employment and foreign earnings has tended to decline. Thus, the proportion of GDP originating from agriculture has declined from 18.1 per cent in 1975 to 10.3 per cent in 1980. Similarly, the share in Gross Domestic Fixed Capital formation fell from 11.0 per cent to 6 per cent over the same period. This fall is a reflection of more rapid growth in other sectors. The absolute value of agricultural production has continued to increase: by 20 per cent in real terms since 1975. Furthermore, 20 per cent of manufacturing industry value added is based on domestic agricultural production.

Agricultural products remain an important element in total domestic exports. In relative terms, however, their importance has declined from 49 per cent in 1975 to 34 per cent in 1980 (including industrial products of agricultural origin). The most important agricultural export is potatoes which accounted for one-quarter of agricultural exports in 1980, followed by citrus and wines and spirits which account for about 16 per cent each. Table grapes account for a further 8 per cent. So, these products between them account for 65 per cent of total agricultural exports.

The EEC is the major market for Cyprus agricultural exports and takes 70 per cent of all agricultural exports by value. For the major items mentioned above the EEC accounts for 84 percent of potato exports, 70 per cent of citrus, 60 per cent of wines and spirits and 63 per cent of table grapes.

Cyprus has had an Association Agreement with the EEC since 1972. The main effect of it and subsequent arrangements is to reduce or eliminate tariffs between the two sides. Discussions are currently taking place about the possibility of an EEC customs union with Cyprus. Whilst being an important exporter of certain agricultural products Cyprus is by no means self-sufficient in food and substantial quantities of cereals, meat and dairy products are imported. The self-sufficiency ratio for cereals is 30 per cent, for meat and meat products 84 per cent, and for dairy products -16-

84 per cent.

The proportion of the labour force involved in agriculture is for a number of reasons more difficult to specify. The existence of various forms of part-time farming, for example, prevent a simple division into agricultural and non-agricultural labour. The convention has arisen in Cyprus of distinguishing between those 'economically active' in agriculture and those 'gainfully employed', the latter being defined as those farmers and their family members who work at least one-third of the year on their farm and do not have another job.

The Turkish invasion in 1974 makes long-term trends in the size of the labour force difficult to interpret, but inspection of pre-invasion trends indicates a gradual reduction in the proportion of the economically active employed in the agricultural sector. It fell from 40.3 per cent in 1961, to 33.6 per cent in 1973. Since 1975 however the proportion has been static at about 21 per cent (see Table 2.6). There is a big difference however between the number economically active and those gainfully employed. Thus, according to the 1977 census the number economically active was 63,261, whilst the number gainfully employed was only 45,400. The difference between the two figures is made up by (a) those who work for less than 2 months per year on the holding (22,391), and (b) those who work for longer but are employed more in other sectors (3,147). A more detailed analysis of farm and non-farm work patterns is a central objective of this study.

2.6: Agricultural Policy in Cyprus

Agricultural policy in Cyprus attempts to meet a number of objectives. An increase in marketed output is a central aim, policy instruments include an expansion of irrigated land, the introduction of higher yielding varieties of crops and improved breeding stock, and credit and extension programmes, subsidies and structural reform.

Government is indeed very active in agricultural markets, fixing wholesale prices and retail margins for many products, and controlling foreign trade via the issuing of export and import licences. External and internal marketing for some products is also controlled through the operation of statutory marketing boards. These operate for cereals, grapes for wine making, potatoes, carrots, olive products and milk.

The Turkish invasion in 1974 created a need for some emergency and short-term planning. In particular there was the need to create employment opportunities for as many refugees as possible, and to replace the resources -17- lost in the north. A series of Emergency Economic Plans were implemented between 1 975 and 1981, which succeeded to a remarkable extent in reconstruc- ting the farm sector. Cyprus has now reverted to medium-term economic planning and has embarked upon a new 5-year plan which will terminate in 1987. Some detailed discussion of the Plan follows which specifies the Government's economic and social objectives and the means of attaining them.

2.7: The Fourth Emergency Economic Labour Plan 1982-1986

There are three components of the Plan which are of particular relevance to a study of part-time farming. These three areas relate to the labour force, agricultural policy and rural development.

2.7.1: The labour force

"The relative lack of natural resources and raw materials makes human resources the most important factor of production of the Cyprus economy. The full and efficient utilisation of this factor, and its continued development constitutes an essential prerequisite for future economic progress. For this reason, one of the basic objectives of the development effort is the full and more productive ,utilisation of human resources". (Planning Bureau, Cyprus, 1982).

It is estimated that the additional supply of new entrants to the labour market will slightly exceed the total demand during the Plan. The rate of unemployment, however, will remain low. The manufacturing and service sectors, particularly tourism will absorb the largest part of the increase. It is anticipated that there will be an excess demand for unskilled workers and for certain specialisations, particularly service workers. The Plan specifies the following policy objectives and targets:- (i) To increase labour productivity through technological advance and improving the structure and organisation of production. (The Plan concludes that structural changes are particularly vital in agriculture.) (ii) To reduce unemployment among graduates through the creation of employment opportunities, temporary employment abroad and retraining. (iii) To increase the participation of women in the labour force. The anticipated labour shortages will appear mainly in sectors and occupations which traditionally employ a large number of women. Policy measures include guaranteed maternity leave, and the improvement of public and private sector child caring services. (iv) To provide industrial training through the establishment of an Industrial Training Authority. Objectives (i) and (iv) have particular significance for the study of part-time farming -18-

2.7.2: Agricultural policy

The agricultural objectives of the Plan stress the need to improve the efficiency of resource utilisation. Thus land productivity will be increased through an expansion of irrigation, and land and labour productivity through the creation of 'viable, consolidated and modern' farm units. This latter intention will be pursued via land consolidation programmes which will be concentrated, initially at least, in areas which are intended for irrigation projects.

It is anticipated that crop production will expand at the rate of 2.9 per cent per annum (mainly through expansion in the irrigated area) and livestock by 3.4 per cent per annum. The central policy mechanism for livestock development is the Smallholders' Livestock Project which aims to increase the size of sheep and goat herds, and expand fodder production.

The Fourth Emergency Plan essentially carried on the practices inaug- urated in earlier plans, pending the completion of a Comprehensive Development Plan for the Agricultural Sector which was begun in 1977.

2.7.3: Rural development

The rural development problem in Cyprus is perceived to result from farm mechanisation reducing the demand for labour in agriculture and accelerating the process of urbanisation, particularly among younger people. Agricultural communities in rural areas have declined. Greater decline has only been arrested through the subsidisation of agricultural activities in those areas.

Long-term rural policy is to maintain a balance of activities in rural and urban areas, through regional programmes. The point is made that as Cyprus is a small country with good communciations there are no great 'natural' advantages with respect to location of non-agricultural activities. The more specific rural development objectives of the Plan are:- (i) To reduce differentials in living standards between rural and urban areas. (ii) The exploitation of the comparative development advantages of each region. (iii) The more productive employment of the rural labour force through the creation of sources of income in the countryside (e.g. new industrial estates, more tourist expenditure in villages). (iv) The more rational organisation of public services through the development of rural centres. (v) The promotion of regional development projects. Part-time farming affects several of these issues and its existence will affect the realisation of Government objectives. -19-

2.8: Part-time Farming and Economic Development in Cyprus

There are several ways in which the incidence and behaviour of part- time farmers is important for economic development in Cyprus.

Agriculture will remain an important sector of the economy, particularly in its contribution to export earnings. With land, water and labour scarce, efficient resource utilisation is critical.

Economit development, as a whole, will be affected by the supply of labour and it is commonly supposed that the agricultural sector is one area where labour could be shed without significant effects on output. The net effect of part-time farming on inter-sectoral labour mobility will have an important bearing on this labour transfer.

The geographical distribution of people within the island is important not only for domestic reasons, e.g. the avoidance of too rapid metropolitan growth, but also for its impact on the tourist industry. Rural depopulation has emerged as an important social problem, and the vitality of some villages appears to have declined with the emigration of young people. Part-time farming may again be an important factor in stabilising rural communities.

Before embarking, however, on a detailed examination of part-time farming in Cyprus, this report proceeds to review the extent of part-time farming in other countries and the conclusions that researchers have drawn concerning its effect on rural change and development. -20-

CHAPTER THREE

A REVIEW OF PART-TIME FARMING

3.1: Importance and Diversity of Part-time Farming

3.1.1: The extent and growth of part-time farming

The significance of part-time farming is becoming increasingly recognised in all parts of the world., "Part-time farming is a feature of agriculture in all countries no matter what their stage of development, economic system, political creed or culture" (Gasson, 1983).

A few examples will serve to illustrate the point. Part-time farming is practically a universal phenomenon in the advanced industrial societies. In 1978, 55 per cent of farm operators in the USA reported off-farm work, with 44.4 per cent working 100 or more days off the farm (Jones, 1980). The phenomenon has been less well documented in developing countries, but as more information becomes available it is clear that part-time farming is common. "Farm management surveys have shown that as much as 25 to 50 per cent of the annual labour supply of rural households in sub-Saharan Africa is spent on off-farm activities such as small scale industry, rural public works and trading" (Eicher and Baker, 1982). Similar levels of part-time farming are found in countries of Asia, Latin America and the Middle East (Anderson and Leiserson, 1978).

Not only is part-time farming important in many countries, but also it appears to be growing in importance. Between.1934 and 1974 the proportion of US farm operators working off the farm for 100 days or more per annum probably quadrupled (Goss, Redefeld and Buttel, 1979). In 1977 off-farm income comprised 57 per cent of personal income per head of the United States farm population, compared with 50 per cent in 1975 and only 26 per cent in 1945 (Carlin and Ghelfe, 1979). In Japan, over 87 per cent of all farm households had other sources of income and employment in 1975, as Similar, against 85 per cent in 1970 and 66 per cent in 1960 (OECD, 1978). though perhaps less extreme, tendencies have been observed elseWhere.

In this context, the situation in Cyprus, where 54 per cent of all is not agricultural holders had an additional off-farm occupation in 1977, majority unusual (Department of Statistics and Research, 1979). For the of these part-time farmers (94 per cent) the off-farm employment represented -21- the main occupation.

Given the extent and growth of part-time farming throughout the world, there has been an increase in research and literature devoted to the topic. Useful reviews have been published in recent years which draw together general analyses of the phenomenon and make policy prescriptions (see, for instance, Fuller and Mage, 1975; Centre for European Agricultural Studies, 1977; Gasson, 1977; OECD, 1978; Kada, 1980; Martens, 1980; and Special Issue of GeoJournal, 1982).

3.1.2: Problems of definition

Part-time farming, or rural pluri-activity, has many different characteristics. There is no single, universally-accepted definition, so the statistics quoted above are not all strictly comparable. Indeed in a recent directory of part-time farming studies no fewer than 244 references are listed, each concerned with the definition of part-time farming (Fuller and Mage, 1977).

There are at least three broad sets of criteria for classifying part- time farms based on (i) size of holding and its labour requirement, (ii) actual allocation of labour between different occupations, and (iii) proportion of income derived from farming. A further complication is that allocation of labour, or source of income may apply only to the head of household, or to the whole family.

The first criterion relates to the agricultural holding rather than the operator, and specifically refers to its capacity to provide a viable income, and full employment for one man under normal operating conditions. Farm area is a very poor measure of size because of variations in intensity of land use. Total standard labour requirement, calculated on the basis of the crops and stock on the holding, is thought to be a better measure. In Britain a farm requiring fewer than 250 standard man-days (previously 275 man-days) for its operation is considered as a part-time holding (ADAS, 1975).

An attempt to develop a typology of part-time farming in the Val Nure of Italy, defined a part-time holding as one requiring fewer than 271 man- days a year (Fuller, 1975). Farming systems which exceed this threshold labour requirement are assumed to be full-time holdings. In the Italian study it was shown that more than half of the 'part-time units' were in fact operated full-time, while some of the 'full-time units' were operated part- time (see Figure 2). Thus the problem of defining a 'part-time operator' -22-

Figure 2: Factors Affecting Operational Decisions

Part-time Unit Full-time Unit 271

A. Part-time operation C. Part-time Operation

25 farms 17 farms

Economic necessity Choice

. Insufficient work on unit . Profit maximisation . No additional income . Rural residence source . Hobby

Choice

. Small scale hobby farming

B. Full-time operation D. Full-time operation

32 farms 145 farms

Extra off-farm income unearned

. Pension : Welfare . Investments . Remittances Represents the potential shift of Earned farms influenced by changes in the . Farm family earnings family cycle or other socio-economic Choice conditions* -4r . Old age . Lack of technical skill . No alternative employment

0 271 days 00

*Farms may also shift laterally should a change in the scale of operation take place.

Source: Fuller, 1975. -23- remains.

The second criterion on which classification may be based is whether the operator has any off-farm occupation. This begs the question of which should be considered as an off-farm activity. When is a farmer a dual job holder? Particular problems arise in the case of agriculture-related activities such as food processing, retailing of farm produce, home industry and farm holidays. Some arbitrary decisions may be needed in categorising these activities (Martens, 1980).

Apart from these problems it is unlikely that a simple classification, based on whether or not the operator has an off-farm occupation, will be adequate. The range of variation will be very wide. Some will be fully occupied on their farms whilst undertaking occasional or temporary off-farm work, whilst others will have full-time off-farm occupations and farm as a hobby. A more detailed classification must be based on the actual allocation of time between occupations.

The third criterion relates to the proportion of total income earned from off-farm employment. In principle, it seems more appropriate to consider household income rather than that of the farm operator alone. This also applies to the allocation of labour, as suggested in the following definition, "Part-time farming is the practice of a farm-based household, in which one or more members are gainfully engaged in work other than, or in addition to, farming the family's holding" (CEAS, 1977). However, this definition is perhaps too comprehensive. It begs the question of who should be included in the household. For instance, adult offspring may live at home but work elsewhere and live fairly independent lives. Others who live away may send remittances home regularly. An alternative suggestion is that the focus should not be on those who live under one roof, but on those who share their resources in common (Bergmann and Laurent, 1977).

In practice, of course, there are difficulties in tracing all sources of family income and establishing how all family resources are allocated, so rather cruder definitions need to be employed.

The definition which is used will also depend on the objectives of the study. If the purpose is to identify income levels in rural communities, and the impact on rural incomes of agricultural policies then the income definition is more appropriate. If on the other hand rural employment is the central issue then allocation of labour would be preferred. -24-

This study has several objectives but a central one is to assess the significance of part-time farming for the Cyprus economy. As labour shortage is said to be a main constraint to economic growth in Cyprus, the implications of part-time farming on the labour market is an important area of investigation. For this reason the main classification that has been used is based on labour allocation.

For much of the present study farmers (i.e. operators) have been classified as follows:- (i) full-time farmers, with no off-farm occupations, (ii) farmers with part-time off-farm occupations, (iii) farmers with full-time off-farm occupations.*

This still leaves the problem of classifying old age pensioners (and possibly hobby farmers of independent means) who are not fully occupied on the farm and may not derive a viable income from the farm, yet do not have any other employment. In many countries this represents a substantial category of the farming population. For some analyses they should perhaps be considered separately.

3.1.3: Economic development and the rural economy

An important consequence of economic development is the need for structural change. Indeed structural change is a leading indicator that economic development is taking place.

As incomes grow, the demand for agricultural products increases less than proportionately (Engel's Law, see Burk, 1962). New technologies however will increase production and consequently the relative levels of agricultural prices (or the inter-sectoral terms of trade) will tend to fall. This, in turn, will cause agricultural incomes to decline in relation to those in other sectors (gosling, 1974) and a migration out of agriculture into more highly remunerated occupations will follow.

Rural-urban migration is occurring in virtually every country in the world. A distinction however should be drawn between those countries where this movement of people is a response to the circumstances outlined above, (i.e. a response to better job opportunities in urban areas) and those countries where rural-urban migration is borne of despair and the poverty of life in rural areas. Thus, in most less developed countries migration into *A closely similar system of categorisation is used in Germany (Federal Republic) where the third group are referred to as worker-peasants (Bergmann, 1981). -25- urban areas occurs in spite of the fact that urban unemployment levels are already high. Two other important distinctions should be drawn between agriculture in the developed and developing countries. Firstly, while rural-urban migration is ubiquitous, total population in rural areas in most developing countries continues to increase because of rapid natural population growth, whilst in developed countries absolute population in rural areas is declining. This has major implications for the structure of agricultural production.

Secondly, in many of the poorer countries demand for agricultural products is growing very rapidly. Population growth is rapid and income elasticities of demand are relatively high. If, in these circumstances agricultural prices are depressed it is not because of inexorable economic forces but because of distortions and biases introduced by Governments.

In either of the two situations outlined above, the development of part-time farming may play an important part in arresting the flow of rural-urban migrants. In countries where such migration is a response to a desired contraction in the relative size of the agricultural sector part- time farming will provide higher income earning potential whilst maintaining a rural base and an added income flow from agriculture. In poor countries where decreasing land-labour ratios, resulting from population growth, lead to reduction in farm size and diminishing returns to labour, off-farm income sources offer an alternative to speculative migration and the economic and social problems associated with rapid metropolitan growth.

3.1.4: Urbanisation and the development of the dual economy.

In the process of development, most manufacturing industry, trade and commerce is located in towns. Thus, urban growth is associated with industrialisation and the spread of commerce. The advantages of an urban location are:- (i) the increased opportunity for human inter-communication and mutual stimulation; competition and co-operation; leading to (ii) the possibility of organisation specialisation and economies of scale (Thornton, 1982). As a result, it is easier and cheaper to provide social overhead capital and social amenities in urban areas. Educational, health, entertainment and other amenities are more readily available and usually of a higher standard in towns. -26-

These advantages of urban dwelring, together with the prospect of higher incomes, attract migrants from rural areas. They are the 'pull- factors' as contrasted with the 'push-factors' of rural poverty and lack of economic opportunity in the countryside, which are an incentive for migration. However, migration involves a cost, which an economist may view as an investment in human capital. The potential migrant is then, supposed to consider the expected net benefits and costs of moving to each potential destination and chooses to move if there is at least one destination for which expected benefits exceed costs. "Conceptually, this net gain is measured as the difference between the present discounted value of the expected lifetime real income, or utility stream the migrant would receive if he or she moved to that destination and the present discounted value of the lifetime real income stream the migrant expects to receive if he or she does not move, less the costs of moving" (Da Vanzo, 1981) (also see Sjaastad, 1962, and Todaro, 1969, 1976).

Several points should be noted regarding this theorectical model. First, as with all micro-economic decision models, the actor is assumed to be a 'rational' maximiser of utility or 'real income'. Although it is recognised that real people do not actually make these calculations, the outcome of their behaviour often accords with such a model. Of course, in empirical work it is impossible to measure individual utility and physical or cash income is used as a proxy. Thus, in theory, the 'real income stream' in the towns is supposed to include the satisfactions.derived from the bright lights and enhanced social amenities, minus the costs of pollution and congestion. Rural real income includes the attractions of the countryside, the social and even moral climate and family ties. Many of these costs and benefits may be unquantifiable (Byerlee, 1974).

The costs of moving include not only the direct costs of transport of self and possessions, but also the costs of information gathering and earnings foregone while job hunting ('opportunity costs'); loss in value of location specific assets, in the area of origin, including home, land, status, and so on, and psychic costs of leaving friends, relatives and familiar surroundings (Da Vanzo, p.93, op. cit.). Clearly these costs are likely to increase with age, while the duration of the time stream of enhanced income decreases with age. This explains the observed tendency for the young to migrate leaving an ageing rural and farm popualtion. In developing countries, it is claimed that migration occurs mainly between -27-

the ages of 15 and 30 (Cannel et al, 1976, p.39). Statistics for the European Economic Community seem to reflect a similar trend (see Table 3.1).

Table 3.1: Changes in the Proportion of Working Popualtion in Young and Old Age Groups in the EEC (Percentages)

14-34 years Over 55 years

1975 Working Agricultural Population 22.8 25.3 1977 Working Agricultural Population 23.5 26.1 1977 Total Working Population 41.2 14.2

Source: EEC (1979).

The second point to note, is that expected income streams are compared; that is the average income of those who are employed multiplied by the probability of finding employment. Thus, although increased unemployment may discourage migration, some may still take place provided the gap betweenrural and urban wages is sufficiently large (Todaro op.cit.). However, this formulation does not allow for risk aversion. In fact the cautious, more traditional members of rural society are less likely to migrate than the adventurous innovators (Da Vanzo, p.95, op. cit.).

Third, there is a substantial capital cost involved in migrating, which will vary with distance. Other things being equal, people are more likely to move short distances than long ones. Further, it is the rural families with most resources, or greatest wealth who can afford migration of some of their members, even though those with fewest resources have the greatest need to move. If the wealthy move out they may take resources with them, thus exacerbating rural poverty (Cannel et al, p.200, op. cit.). Technological change in agriculture is claimed to displace labour, both root causes of migration (see Rhoda, 1979, or Urzua, 1978 and 1980).

Linked with these effects is the impact of education. This not only increases a person's income earning potential in urban areas and reduces the information gathering costs of finding urban employment, but also may change his outlook, widening his horizons and giving him a taste for more sophisticated urban life (see Keyfitz, 1977; Godfrey, 1973). This helps to explain why, as education expands, more young people migrate, -28- especially from among the group who can afford further education. Thus education is linked with migration as investment in human capital.

One weakness of the above analysis is that it treats migration as an individual decision, whereas family links are usually involved. Large families may be less likely to migrate because of the high cost of moving, but may be more likely to send some members in search of off-farm work (Mincer, 1978). Thus, as men move out of agriculture there is an observed tendency for farmers' wives to carry an increasing share of the burden of farm work (FAO, p. 20, op. cit.).

Of particular importance is the phenomenon of chain migration, whereby once one member of an extended family has found urban employment, others may follow him at intervals over the years. This process probably reduces individual costs of moving and job hunting, thus enabling relatively poor families to contribute a stream of migrants (see MacDonald and MacDonald, 1964; Choldin, 1973; or Agnew and Cox, 1979). It also serves to emphasise the fact that migration is a process rather than a static, once only phenomenon (Garbett and Kapferer, 1970).

The effect of most of the above tendencies is that the young, educated, risk-taking innovators are attracted to the towns. Thus, a dualistic economy may develop with a modern, progressive capitalised urban sector and a traditional, poor, subsistence-orientated and ageing rural sector (Boeke, 1958). It has also been argued that surplus labour or disguised unemployment exists in the traditional sector, in the sense that marginal productivity is zero, so that when labour is withdrawn there is no decline in is agricultural output (Lewis, 1954; Ranis and Fei, 1961). Although it doubtful whether the marginal product of labour is zero in traditional above, agriculture, it may well be low in relation to urban wages, as argued and some seasonal underemployment is inevitable given the cyclical nature of crop growth (Upton, 1976; Cho, 1968).

This unequal dualistic development may proceed further as political and economic power becomes concentrated in urban centres. Thus, farmers are dependent on urban markets for their products, in which a relatively small number of traders have superior trading power. Administrators, entrepreneurs and managers are recruited from urban areas and they may intro- duce policies which favour urban areas and technologies inappropriate to traditional agriculture. In short, the process of development may be -29- subject to 'urban bias' (Lipton, 1977). Government intervention may be needed to redress the balance between town and country (Friedmann, 1972).

Some commentators see the chain of dependency stretching not only from rural periphery to urban core, but also overseas to the high income ex- colonial powers. Underdevelopment of the rural areas is then viewed as the inevitable result of capitalist development elsewhere (Frank, 1977; Dos Santos, 1973; Lall, 1975;. Keyfitz, 1976; Thornton, op. cit, p. 29; Christodoulou, 1982).

3.1.5: Changing patterns of migration and regional differences

It was noted earlier that, in Western Europe, the rate of rural-urban migration appears to be slowing. In the European Economic Community as a whole, the reduction of the working agricultural population was 21 per cent between 1965 and 1970, 17 per cent between 1970 and 1975, and 13 per cent from 1973 to 1978. In Greece, the average annual rate of decline in the working agricultural population dropped from 4.7 per cent between 1961 and 1971 to 2 per cent from 1971-77 (FAO, 1980, op. cit., pp 10 and 11).

Indeed various authors have suggested that migration is not a single process but may go through various stages in the course of economic development. In particular, there may be a swing from 'backwash or polarisation effects', which attract resources including labour to the urban core, thereby draining the periphery, to 'spread or trickle down effects' which redirect resources to the periphery, thus reducing rural-urban inequalities (Gaile, 1980; Richardson, 1976). More specifically Pedersen (1975, pp 69-170) has suggested three main stages:- (i) In a traditional society neither polarisation nor trickle down effects would arise since the economy would consist of many independent village units with no specialisation of economic activity and poor transport links. (ii) In the process of industrialisation, agglomeration economies become important so increasing polarisation occurs. The economy develops a few central cities with locally specialised productive activity, and good communications and transport links focused on the core cities. There is a strong rural- urban migration flow. (iii) Finally, in the post-industrial or advanced economy stage, the spread effects start to outweight the polarisation effects. Economic activity diffuses towards the periphery, migration flows may be reversed and the core-periphery distinction breaks down.

Zelinsky (1971) in his 'hypothesis of the mobility transition' extends Pedersen's list to five phases (see Figure 3). He splits the -30-

FIGURE 3: ZELINSKY'S HYPOTHESIS OF THE MOBILITY TRANSITION Changing levels of various forms of mobility through time.

INTERNATIONAL

111 IV PHASE

FRONTIERWARD (Domestically) RURAL-URBAN

It lit W II III V PHASE PHASE

E) URBAN-URBAN CIRCULATION AND INTRA- URBAN

11110.010411,WOMMIMMOWARMIVAIMMIMANNWRIMMI, I Li V Ai Ill rst PHASE PHASE

(3 POTENTIAL CIRCULATION POTENTIAL MIGRATION ABSORBED ABOSRBED BY COMMUNICATION CIRCULATION SYSTEMS

It III IV II III IV PHASE PHASE

Source: Zelinsky, 1971 - Geographical Review. -31-

Notes on Figure 3 Phases of the Mobility Transition Phase I - The Premodern Traditional Society (1) Little genuine residential migration and only such limited circulation as is sanctioned by customary practice in land utilisation social visits, commerce, warfare, or religious observances. Phase II - The Early Transitional Society (1) Massive movement from countryside to cities, old and new. (2) Significant movement of rural folk to colonisation frontiers, if land suitable for pioneering is available within country. (3) Major outflows of emigrants to available and attractive foreign destinations. (4) Under certain circumstances, a small, but significant, immigration of skilled workers, technicians and professionals from more advanced parts of the world. (5) Significant growth in various kinds of circulation. Phase III - The Late Transitional Society (1) Slackening, but still major, movement from countryside to city. (2) Lessening flow of migrants to colonisation frontiers. (3) Emigration on the decline or may have ceased altogether. (4) Further increases in circulation, with growth in structural complexity. Phase IV - The Advanced Society

(1) Residential mobility has levelled off and oscillates at a high level. (2) Movement from countryside to city continues but is further reduced in absolute and relative terms. (3) Vigorous movement of migrants from city to city and within individual urban agglomerations. (4) If a settlement frontier has persisted, it is now stagnant or actually retreating. (5) Significant net immigration of unskilled and semiskilled workers from relatively underdeveloped lands. (6) There may be a significant international migration or circulation of skilled and professional persons, but direction and volume of flow depend on specific conditions. (7) Vigorous accelerating circulation, particularly the economic and pleasure-oriented, but other varieties as well. Phase V - A Future Superadvanced Society (1) There may be a decline in level of residential migration and a deceleration in some forms of circulation as better communications and delivery systems are instituted. (2) Nearly all residential migration may be of the interurban and intraurban variety. (3) Some further immigration of relatively unskilled labour from less developed areas is possible. (4) Further acceleration in some current forms of circulation and perhaps the inception of new forms. (5) Strict political control of internal as well as international movements may be imposed. -32-

'move to industrialisation' into two phases: an 'early' and a 'late' transitional phase. He also adds 'a future superadvanced society'. Attention is drawn to the movement of people to colonisation frontiers and major outflows of emigrants in the early transitional society; also to immigration of skilled workers in the early stages and perhaps of unskilled labour to the advanced society. Not all these features are relevant to all countries. The dangers of formulating general theories of stages of development, which are supposed to provide a guide as to the future growth path of developing countries, is well recognised (Chang, 1981).

In part, the recent slowing of the rate of rural-urban migration in Europe may be associated with the general economic recession, or even with the fact that in several countries agricultural employment is now at such a low level there is little scope for further migration out of the industry. However, it is also suggested that attitudes may be changing, in favour of the rural life and against urban dwelling (FAO, 1980, op. cit., pp 11-12). the pollution and congestion costs of urban growth are emphasised by Hirsch (1976) and Wilscher and Righter (1975, p 22). Furthermore in mature economies there is generally a heirarchy of different sized towns rather than a single central core. Market towns develop in the rural areas and rural industries may become established either to process local agricultural products or to tap local pools of labour (for example, see Hackenberg., 1980). To some 'most small towns appear as the lowest rungs of systems for the oppression and exploitation of rural peoples' (Southall, 1978), but a system of 'diffuse urbanisation' is surely less polarised, or more integrated than a single-metropolis economy (Thornton, 1982, op. cit., p 18). The total impact of all these developments is a slowing of the rate of rural-urban migration or even a reversal of the flow to rural areas (see for instance Hall and Hay, 1980; Isserman, 1980; Norton and Rees, 1979; Rees, 1979; Spence, 1980; Vining and Kontuly, 1978).

The development of transport and communications systems clearly has an important impact on patterns of migration. In traditional society, communications are poor and effectively limit migration to the 'chain' type. Initially transport and communication links are along trunk routes linking core cities. Opportunities are increased for periphery to centre migration. Later, as a network of feeder roads and communications evolve, other inter- regional population movements become easier (see Taafe, Morrill and Gould, 1963). -33-

In fact regional differences are inevitable, particularly in relation to variation in land ca0ability and differences in location (see Hall, 1966, or Chisholm, 1962). Thus favoured areas with fertile soils, located near major markets are likely to be more fully developed or modernised than remote, less fertile areas. As a result, while rural-urban migration may have slowed to a trickle or may even be operating in the reverse direction around the urban periphery, rapid migration out of agriculture may still be occurring from remote regions. Indeed rural-rural migration may occur from the less favoured areas to more advantaged ones (see Thornton, 1982, op. cit, Urzua, 1978 and 1980 op. cit.).

In Europe the less favoured areas seem to be concentrated in hill and mountain regions. Norway, Sweden, Scotland, Switzerland and Austria are particularly affected,but so too are the uplands of France (Brun, 1982), Greece and Jugoslavia (Miljovski, et al). Concern is growing regarding the depopulation of some of these areas (FAO/EEC, 1978).

3.1.6: Trends in part-time farming

Much of the early literature on part-time farming assumed it to be a transitional stage in the process of industrialisation and urbanisation (see McLeay, 1976; also Pearce, 1981). However, this seems highly unlikely in view of the ubiquity and persistence of part-time farming outlined above (Section 3.1.1). Rather it would seem that the role of part-time farming may change in the process of development. Sivini (1976) shows how its role has changed historically in the development from feudalism to capitalism in Europe.

Changes may be related to the three phases of migration development suggested by Pedersen (op. cit.): (i) In traditional society non-food items and services must be provided locally. Weaving, tailoring, building, blacksmithing, food processing and so on are produced by local artisans who are likely to farm part-time to provide food needs. The same is true for priests, musicians, village chiefs and other public servants. (ii) In the move towards industrialisation, some members of farm families will be attracted to urban employment without actually moving home. Development of main transport routes may allow daily or seasonal commuting from farm to town (Kada, 1982). (iii) In the advanced economy, industrial development is spread more evenly throughout the countryside. Rural industrialisation and the improvement of feeder roads make it easier to find off-farm employment locally. At the same time some urban businessman or administrators may take up hobby farming. All these forms of part-time farming may be found together but their relative importance will differ over time and spatially between regions. -34-

Closer analysis of the statistics, may show substantial movements into and out of part-time farming, but since these flows tend to balance each other, the population of part-time farmers is more stable. For instance, recent statistics for the Netherlands show an annual outflow of 23 per cent of part-time farmers, but this is almost balanced by an equivalent inflow (see Figure 4) (Kloprogge, 1978).

Unless policy measures discourage dual job holding it is expected at least to maintain its position in Europe. Martens (1980) gives the following support for this view:-

relatively insecure employment appears to have a stabilising effect on part-time farming, although a lack of alternative employment may slow down labour mobility and encourage full-time farming. A major economic crisis can result in a smaller number of part-time holdings. - women in general, and this also applies to farmers' wives, are becoming increasingly active on the labour market. This may mean that increasing numbers of farm families will seek part of their income from outside sources. - a further reduction in the weekly number of working hours for paid labour, together with industrial decentralisation and better transportation facilities, leaves more spare time to combine work on the farm with an off-farm job. - the increasing demand to live in a 'green' environment may incite more people to start or to continue farming on a part-time basis." In poorer countries the importance of part-time farming is also likely to increase. Continuing population growth accompanied by slow expansion in urban employment will cause further shrinkage in the size of agricultural holdings. Rural people will therefore be forced to seek alternative income sources in rural areas.

3.2: The Part-time Farm Household

3.2.1: Household economics and the allocation of time

A conventional approach to the theoretical analysis of household behaviour is to assume that expected utility is maximised subject to technological and available labour constraints (see Section 3.1.4). Classical economic theory suggests that utility can be increased by improving productive efficiency which in turn is improved by specialisation and division of labour (Smith, 1776). On the basis of this theory, it might be argued that total household utility (and the welfare of society) would be maximised by specialised production either within agriculture, or outside it if higher incomes can be earned elsewhere. Of course there is scope for specialisation and division of labour within the household, so a family -35-

FIGURE 4: MOVEMENTS IN AND OUT OF PART-TIME FARMING IN THE NETHERLANDS (Numbers per 100 part-time farmers)

Source: Kloprogge, 1978. -36- might benefit from pluriactivity, but given that one of the advantages of specialisation is supposed to be reduction of travelling time between activities, there are advantages in the family as a whole being located near the place of work of the employed members.

Neoclassical theory may lead to different conclusions in the light of the following assumptions:- (i) productive labour in agriculture (or elsewhere) is subject to diminishing marginal returns; (ii) leisure, as well as cash income, is a source of utility and so too are certain home produced and consumed goods (known as z-goods); (iii) all forms of income are subject to diminishing marginal utility, which, in the case of leisure, means that the individual's labour supply curve slopes upward (is somewhat elastic).

Based on these assumptions an extensive literature on so-called 'household economics' has developed (see Becker, 1965; Gronau, 1977; or Schultz, 1981). This approach has been used for analyses of the farm household labour allocation decisions, both theoretical (see e.g. Nakajima, 1969), and empirical (Barnham and Squire, 1979); also at the sectoral level (Hymer and Resnick, 1969). Several studies have been devoted more specifically to the allocation of labour between on-farm and off-farm work (Lee et al, 1965; Polzin and MacDonald, 1971; Hauf and Muller, 1975; Bollman, 1975; Low, 1982; Kada, 1983).

In its simplest form, the analysis ignores z-goods, so utility is simply a function of cash income (Y), from farming or off-farm employment, and leisure (L).

U = U(Y,L) (1)

The total hours available (T) minus hours of leisure (L) gives the total hours worked, in both agriculture (A hours) and non-agriculture (T-L-A hours). We then have the constraint Y = p.f(A/K) + w.(T-L-A) (2) where f(A/K) is the agricultural production function, with all non-labour inputs fixed at K; p is the market price of the farm produce and w is the fixed hourly wage rate in off-farm employment.

Then, by substituting the value of Y from (2) in equation (1) (or forming a lagrangian equation) and setting the partial derivatives with respect to Y, L and A equal to zero, utility is maximised. The following equalities result:- -37-

dY p.f/ = w = dL i.e. the value of the marginal product per hour spent in farming is equal to the hourly wage rate in off-farm work and in turn both are equal to the subjective marginal rate of substitution of income for leisure or the 'marginal valuation of family labour'. This may be represented diagrammatically as in Figure 5 (based on Bollman, 1979, and Kada, 1983).

The above analysis and the diagrams illustrate the situation for a part-time farming family, where both A and (T-L-/) are positive in equilibrium. In the upper diagram the total income is OY* made up of 0Y1from agriculture and Y* from off 1 -farm work, while in the lower diagram these are represented by the areas under the curves OZQ/ A* and A*Q/R/X respectively.

Note that ZCl/R/ may be viewed as 'kinked demand curve' for family labour, while the marginal valuation of family labour curve represents the supply curve. Supply and demand are equal at R/ where the curves intersect (Boll- man, 1979, op. cit.). Thus in these circumstances part-time farming represents the most efficient use of labour. This analysis suggests that the off-farm labour time is obtained partly by farming less intensively and partly by taking less leisure than a similar full-time farm family would.

'Alternative results are possible within this framework. First, if the value of the marginal product of labour in farming equals the marginal valuation of family labour at a level above the off-farm wage rate, no off-farm work will be undertaken. Second, if the off-farm wage rate everywhere exceeds the marginal product in agriculture, the optimal policy is to leave farming altogether. Clearly the diagrams could be modified accordingly.

Strictly speaking the concept of utility relates to a single individual, not a multi-person household. Furthermore, the on- and off-farm earnings potential may vary from one family member to another. As a first approximation, however, this convenient treatment of the household/family as a single decision maker may not be seriously misleading. The analysis also treats transport costs as a constant element of hourly returns to off-farm work. In fact it is a fixed daily cost irrespective of hours worked, so a discontinuity occurs in the labour demand curve. Another limitation is that no account is taken of seasonal variation in the marginal product of farm labour. Nonetheless this theoretical analysis is thought to illumin- ate the economic basis for choosing part-time farming. Possible modifica- tions are discussed below. -38-

FIGURE 5: SUBJECTIVE EQUILBRIUM FOR PART-TIME FARMING

---Income- leisure indifference curve

Income

<--Farm production function

--Marginal valuation Value of of family labour labour per hour w

Off- farm wage

A Quantity of labour Source: Bollman (1979) and Kada (1983). -39-

3.2.2: The characteristics of part-time farming and farmers

Many studies of part-time farming have been aimed at discovering whether it is a 'problem or resource in rural development' (Fuller and Mage, 1975). In particular, productivity comparisons are made between part-time and full-time farms. These comparisons must be used with caution, since each farm is unique and observed differences may be due to many causes other than whether they are farmed part-time. Thus a more fundamental cause may be variations in the land/labour ratio. Many studies have shown part-time farming to be most common where farms are small in area and/or households are larger than average. (For instance, see evidence from USA: Carlin and Ghelfi, 1979; Japan: Kada, 1982; France: Brun, Lacombe and Laurent, 1974; Canada: Mage, 1974; and Jugoslavia: Sparavalo, 1982). This is not unexpected, since by the 'law of diminishing returns', the marginal product of labour in agriculture will be low where the ratio of labour to land is high. Off-farm work will be more attractive. However, if a comparative study shows that, say, return on capital is higher on full-time farms than on part-time ones, it would be wrong to conclude that part-time farming is less 'efficient'. The poorer return on capital may result from the unfavourable man-land ratio.

Part-time farming is common in the relatively disadvantaged regions particularly hill farming areas (see Brun, 1982; Miljovski et al, 1982; and FAO/EEC, 1978). This again is to be expected since the marginal product of agricultural labour is likely to be lower in these regions than in more fertile areas. However, more detailed analysis of the incidence of agricultural pluri-activity, suggests that it is least common on medium sized farms (in terms of land area) but more prevalent than average on larger farms (see evidence from Spain: Arnalte, 1982; France and Itlay: OECD, 1978; and United Kingdom: Gasson and Harrison, 1982, or Gasson, 1983). A tentative explanation is that while a small farm cannot provide full employment for one man, a medium sized one can; a large farm, on the other hand, may provide employment for hired labour and thereby leave members of the farm family free to seek off-farm employment (Gasson, 1983).

For a farm of a given size and type, part-time operation can be expected to result in: (i) simplification of the farming system and specialisation in labour-saving enterprises; (ii) less intensive use of land, reduced frequency of cropping and less intensive enterprises; -40-

(iii) increased labour productivity due in part to increased production per hour on average and in part to longer hours of work; (iv) a poorer return on investment due to reduced intensity of production and increased investment in labour-saving equipment; (v) reduced sales off the farm, hence a greater relative emphasis on subsistence production (auto-consumption).

Empirical studies in many countries support these predictions. Thus part-time farmers are often found to operate simplified systems of low labour intensity. In Japan part-time farmers have largely abandoned winter cultivation of wheat and barley and practise single season rice monoculture (Sugiyama, 1980; Kada, 1982). In the Pais Valenciano of Spain, vegetable production is being replaced by citrus monoculture among part-time farmers (Arnalta, 1982, op. cit.). Farmers with other gainful activities tend to favour beef cattle, sheep, egg production and cereals rather than milk, pigs or more intensive crops (Gasson, 1983, op. cit.; Mage, 1973). The situation is rather different in Hungary where 40 per cent of the whole population are part-time farmers who produce a larger proportion of total output of vegetables, wine and pork than full-time farmers, and the whole output of honey, rabbits and pigeons (Enyedi, 1982).

Partly because of a change to less intensive crops, land is often farmed less intensively. Data from Canada (Cortez and Winter, 1974) and Japan (Kada, 1982) suggest output per hectare is lower on part-time farms, while there are reports of land being abandoned by farmers with off-farm occupations (Sugiyama (Japan), 1982; Krasovec (Jugoslavia), 1982, p.337). Other studies, however, show no clear association between multiple job holding and intensity of farming systems. Some have shown greater intensity on part-time farms (Gasson, 1983; Krasovec, 1982, p.362). The lack of a clear association is perhaps to be expected, given the variation in types of part-time farms. Insofar as off-farm activities are concentrated on small farms, which are likely to be farmed more intensively than large farms, the effect of a reduction of labour use per hectare may not reduce land-use intensity below average.

Much of the available evidence supports the view that labour productivity is increased by multiple-job holding (Cavazzani and Fuller, 1982; Martens, 1982; Kada, 1983) although conclusions may vary according to the measure used (total on- and off-farm income or farm product, per household member or per hour worked). Farm output per person is increased by the following adjustments (Kada, 1982):- -41-

(i) Harder or longer work (i.e. reduced leisure); (ii) use of labour-saving technology (i.e. substitute capital for labour); (iii) adoption of labour-saving types of farm operation; (iv) additional help from other family members, especially wife and elderly members of the family (i.e. increased labour force participation); and (v) help from neighbouring farmers such as custom tilling or harvesting (i.e. co-operation). In addition multiple job holding may even-out the seasonal demand for labour as well as forcing the operator to make labour economies. Evidence from Southern England shows that part-time farm families achieve more productive work per hour employed than do full-time farmers (Gasson, 1983). Results from Israel, however, show returns per hour of family labour to be much smaller on part-time farms, although the converse was true for hired labour (Regev, 1982). Even if returns per hour are smaller for part-time farms in some situations it seems likely that productivity per person will be greater.

In part, improved labour productivity is achieved by increased mechanisation. Indeed, it has been suggested that technological development and increased mechanisation of farming operations is a cause of growth of part- time farming (Cvjeticanin, 1982). At the same time the off-farm income may be invested in the farm (Hein, 1975). Japanese researchers suggest that part-time farms are over-mechanised so that machines are seriously under- utilised (Sugiyama, 1982; Kada, 1982). In England, there is little evidence of higher investment on part-time farms (Gasson, 1983), while in Israel, return on capital invested is higher on part-time farms than on full- tittles ones (Regev, 1982). Thus, apart from the Japanese experience, there is little clear evidence of over-capitalisation of part-time farms.

A subsistence orientation has been observed for part-time farmers in some areas, particularly the more remote, disadvantaged areas (Krasovec, 1982, p. 351) but 'luxury auto-consumption' is also found among hobby farmers (Pieroni, 1982). In other parts of the world, however, there is very little home consumption by either part-time or full-time farmers.

Views are sometimes expressed on the overall efficiency of part-time farming (see Bollman, 1982; Cavazzani and Fuller, 1982; or Regev, 1982). However, the available evidence appears inconclusive and too aggregated for clear conclusions. The tentative conclusion that labour productivity is increased while returns to land and capital are decreased gives no guide as to 'efficiency'. This must depend upon the opportunity costs of resources -42- and their marginal productivities on the farm. These may be unique to each individual farmer. However, if we assumethat farmers make rational choices, it could be argued that those who choose part-time farming do so because their satisfaction is maximised thereby. In this restricted, tautological, sense part-time farming is an 'efficient' use of family resources.

3.2.3: Off-farm occupations

It seems that 'no occupation can be positively barred from being combined with farming' (Harrison, 1975, p. 14). As might be expected, employment on other farms, rural-based activities like forestry and rural recreation or food and drink processing on the farm, are often found (e.g. in Canada, Bollman, 1982; in USA, Vogeler, 1975; or Nigeria, Okafor, 1982; also see Christodoulou, 1982). In many countries larger numbers are employed in manufacturing, generally in small firms, and construction (Bollman, 1982, op. cit.; Sugiyama, 1982, op. cit.). Where the tourist industry is important, it may employ significant numbers of part-time farmers (Arnalte, 1982; Laurent, 1982). Clearly there are significant differences between countries and between regions within a country. Possible contrasts are considered below.

Off-farm occupations range from unskilled, manual work to skilled, white-collar activities, possibly in the professions. There is often a high proportion of self-employed, off-farm activity in small businesses. It is suggested that the proprietor of a small business has greater flexi- bility in organising his, or her, working hours to fit in with farming operations, than is possible under regular wage employment (Alden and Spooner, 1981, pp. 98-101; Kada, 1980, p. 119). This runs counter to the notion that part-time farming represents a proletarianisation of the farm population, as suggested by Goss, Rodefeld and Buttel (1979, pp.45-47) and Mooney (1979) among others. Rather it suggests a process of 'embourgeous- iement' (Buttel, 1982).

Various means of transport are used to reach the off-farm job, both public transport ('bus or taxi) and private (farmer's own car or the employer's 'bus). It has been suggested that the spread of private car ownership has been, at least partly, responsible for the increase of off- farm work. Evidence from Canada suggests that the intensity of off-farm work increases with the distance driven daily to the job up to about 35 km before the distance-decay process comes into effect (Mage, 1979). In some mountainous areas of Japan, factories operate mini-buses over a radius of 30-40 km to collect rural people for work (Sugiyama, 1982, p. 58). As might be expected, there appears to be a positive association between the status or income level of the off-farm work and the distance,farmers are prepared to travel (Gasson, 1963, op. cit., p. 63).

It is widely found that the off-farm income exceeds farm income (e.g. Larson, 1974; Wright, 1981 for .USA; Gasson, 1983, for England; and Cvjeticanin, 1982, for Jugoslavia). This is associated with the fact that many farmers, or farm family members, have a full-time off-farm occupation. Generally speaking, the total income of part-time farmers exceeds that of full-time farmers, in otherwise similar conditions (Shaw, 1979; Buttel et al, 1981; Cavazanni and Fuller, 1982). Contrary to the Dutch data quoted earlier (Section 3.1.6 Figure 4), which showed a slight decline in number of part-time farmers, there is evidence from elsewhere of an increase in off-farm work except where the already high proportion of part- time farmers is levelling off (Martens, 1982). In particular, the numbers holding full-time off-farm occupations are increasing at the expense of those with a part-time off-farm job. Despite these changes it has been claimed, from Canadian evidence, that part-time farming is a means of moving into agriculture, rather than out (Bollman, 1962).

Significant differences exist between regions in the characteristics of off-farm occupations (see Mage, 1982; Mohrs, 1982; Arnalte, 1982; Kada, 1982). The two situations most often emphasised and contrasted are (a) the remote disadvantaged regions, particularly hill areas, and (b) the urban periphery. In the remote, disadvantaged regions farmers are forced to seek off-farm work to maintain adequate income levels. They may find work in rural crafts, forestry or tourism or seek employment on larger farms (Cavazanni and Fuller, 1982; Martens, 1982; Christodoulou, 1982). Many of them find work in urban areas which means that long distances are travelled and much time is spent on the journey to work. These people may eventually move to urban areas and leave agriculture entirely; they are therefore 'transitional' part-time farmers (Pieroni, 1982). On the other hand, industrial manufacturers are increasingly attracted to rural areas for establishing factories, to. take advantage of the low wage, non-unionised labour available there (see Cavazanni, 1976, 1979; Sivini, 1976; and Buttel, 1982). Some would argue that these employment opportunities are seasonal and insecure (Stock, 1976; Sugiyama, 1982). Around the urban periphery, off-farm employment is near at hand, so travel distances are short. High incomes can be earned off the farm so people remain in farming because of the attractions of rural life. Indeed there may be a significant movement from urban industry into part-time farming. Many farmers are self-employed in their off-farm occupations. This type of activity is persistent 'accessional' or 'professional' part- time farming (Peroni, 1982; Troughton, 1976; Harrison, 1969; Gasson, 1983; Mage, 1982).

3.2.4: The part-time farming family and society

Part-time farming is associated with changes in the roles of family members. In the process of rural-urban migration, relatively more women tend to leave the countryside. In some European countries, at least, this has resulted in a large number of unmarried men on farms. However, farmers' wives have stayed on; while other women have left. With a marked decline in numbers of farm workers, holdings tend to be operated mainly by the farm family in which the work input of the farmer's wife has become increasingly important (FAO, 1980; Kada, 1980). In Jugoslavia, for instance, it is estiamted that while wives provide an average 28 per cent of the total farm labour input on full-time farms, for part-time farms the average is 42 per cent (Krasovec, 1982, p. 361). Indeed on many part-time farms the wife is effectively the farm operator, even though not necessarily recorded as such (see Arnalte, 1982).

In Belgium, on the other hand, it was found that the majority of farms classified as full-time, female operated holdings, were managed part-time by husbands with off-farm occupations (Martens, 1982).

Farmers' wives may also have off-farm occupations though this is rarer than male off-farm employment. Wives are more likely to have another occupation on larger farms, often where the husband also has off-farm employment (Gasson, 1983; Buttel, 1981). Other members of the farm household, particularly adult offspring may have off-farm employment, but also contribute to the family income. At the same time young children and aged family members may contribute to farm work, although they are unemployable elsewhere.

Indeed the relative importance of off-farm employment may vary with stage in the family life cycle (Nalson, 1968). At the early stage, up to the time when the first child leaves school, usually the husband and wife are the only household members available for employment and the wife's _15_

activity is limited by child-bearing and rearing. In the middle phase, when children start work, multiple job holding is most likely to occur. During the late phase, all children have left home so consumption needs are diminished and multiple job holding is again less common (Easson, 1983, op. cit., p. 35).

Apart from the higher income that may be derived from part-time farming (para. 3.2.3. above) there are other possible advantages of having both on-farm and off-farm occupations. First, there are the attractions of living in a rural environment, possibly the main motivation of hobby farmers (see Troughton, 1976; Mohrs, 1982). Then there are satisfactions to be derived from land ownership both subjective attachment to the land, especially where it is the family heritage and financial where there are capital gains to be earned. Some part-time farmers are more interested in owning land than farming it while the converse may be true for full-time farmers (Gasson, 1983, op. cit., p. 29). In some countries there are various tax advantages to be obtained from land ownership (e.g. in Australia, Menz, 1977).

At the same time there are various non-pecuniary benefits of off-farm work, amongst which may be the stimulation of working with other people in a different environment (Regev, 1982, op. cit.). Furthermore, urban occupations may offer the advantages of pension schemes, sickness or unemployment benefits, and may increase a person's creditworthiness (Krasovec, 1982, op. cit., p. 341). Urban employment offers a regular constant, stable cash income, thereby providing security in the event of a poor harvest (Brun, Lacombe and Laurent, 1972). In the longer term, however, the farm may provide the greater security, as an occupation to fall back on during periods of depression and urban unemployment (Sugiyama, 1982, op. cit.).

Part-time farmers are generally younger on average and better educated than full-time farmers (Loomis, 1965; Carlin and Ghelfi, 1979; Cavazanni, 1979; Kada, 1980; Buttel et al, 1981; Heffernan et al, 1981). Young and better educated farm operators are better qualified for employment in the non-farm labour market and hence are more likely to associated with people from other backgrounds, including relatives and friends in town (Fuguitt, 1966). Some studies suggest they take a more progressive approach towards the use of modern inputs, co-operation and use of credit (Krasovec, 1982, op. cit., p. 354). They may also take a more favourable view tto the development and modernisation of rural society Heffernan et a 1981, op. cit.).

Other studies suggest that part-time farming has a stabilising influence on rural society. Most farmers with off-farm occupations are satis- fied with their way of life and hope to continue farming even in the face of significant changes in the economic environment (Metzger, 1975; Gasson, 1983, op. cit., p. 159). Newcomers to part-time farming are more attached to the rural community than full-time ones. However, it is thought that increased part-time farming will have few social consequences for rural communities which have already been integrated into the larger urban social organisation (Heffernan, et al, 1981, op. cit.).

Against this, it is argued that part-time farming has slowed the pace of 'centralisation of capital', since the farmers, as property owners, reinforce the bourgeouisie, whilst remaining small-scale operators. "Propertied farm labourers are likely to have a significant identification with the interests of capital and are unlikely to align with the non-farm working class in opposition to the interests of their employers" (Buttel, 1982, p. 297). Research in the USA indicates that part-time farmers are slightly more conservative in their political ideologies than are full-time farmers despite their having small farms and low farm incomes (Buttel, et al 1981). It is further claimed that they support farmers' organisations which press for increased farm prices which become capitalised in higher land prices, all of which primarily benefits large farmefs and landowners.

3.3: Policy Issues

3.3.1: Part-time farmers in agricultural policy

A comparison of government policies in different countries shows varying attitudes to part-time farming. An OECD study of fifteen member countries made the following classification:- (i) Countries in which the attitude to part-time farming has been constant for twenty years, being either indifferent (USA), unfavourable (Netherlands) or favourable (Austria, Switzerland, Norway). (ii) countries in which the attitude towards part-time farming has changed for example from neutrality to active promotion (Federal Republic of Germany, Japan) or from opposition to qualified support (France).

These differences are explained by Laurent (1982) as follows. The neutrality of the USA is thought to follow from the relative abundance of _L7_

land and absence of land-holding conflicts, whereas land shortage in the Netherlands leads to support for more intensive full-time farming. In Austria, Switzerland and Norway, the mountainous terrain and long winters allow seasonal off-farm employment, especially in the tourist sector. Furthermore, Switzerland is committed to food self-sufficiency and therefore all forms of agriculture are supported. Where attitudes have changed in Germany and Japan, pressure on land together with concern for preserving the rural environment led to increased support for part-time farming, while in France, multiple job holding is now seen as a means of maintaining a population in the mountain regions. In this analysis it is not really clear why pressure on land should cause opposition to part-time farming in the Netherlands and support for it in Germany. Nonetheless, it seems likely that resource availability, attitudes to food self-sufficiency and a desire to maintain the population and preserve the environment in rural areas will influence policy choices.

In Britain until fairly recently, part-time farming was largely ignored. The main objective of agricultural policy was production, particularly efficient production at low cost. Part-time farms were thought to represent a transitional stage in the movement out of agriculture, and being small made a relatively unimportant contribution to sectoral output (see Gasson and Harrison, 1982; Gasson, 1983, op. cit.). If anything, part- time farming was seen as an obstacle to structural adjustment and the operators were advised either to become established as bona fide full-time farmers or to leave the industry altogether (NAAS, 1966; ADAS, 1975). Similar attitudes prevailed in Ireland. "Only in recent years has the system of part-time farming gained official recognition in Ireland: Hitherto, the predominance of rural fundamentalist values underlying policy since the foundation of the State implied that farmers should be enabled to obtain a livelihood solely from the land" (Curry, 1975, p. 9).

Martens (1982) takes the view that policy measures in general are biased in favour of full-time holdings. This he ascribes, at least in part, to opposition from full-time farmers. A Belgian survey showed that only 2 per cent of full-time farmers viewed part-time farming positively, while 46 per cent took a negative view. Farmers' Unions, on the whole, do not support the continuation of part-time farming (see Hackman, 1976; Wietfeldt, 1976). As evidence of policy bias against part-time farmers Martens quotes their ineligibility for investment or retirement aids. Thus, the EEC directive on farm modernisation applies only to operators who spend at least half of their time in agriculture and earn at least half of their income from farming. Full-time farmers sometimes have greater security of tenure of rented land.

In developing countries the issue has not been studied in the same depth. An increasing preoccupation with employment however and rural development strategies generally has led to an increasing interest in the contribution of non-agricultural rural income sources. Ranis (1983) for example has remarked on the contribution to economic development made by spatially dispersed non-agricultural activities in many of the newly-indus- trialising East Asian countries. In Taiwan, in 1972, for instance, non- agricultural income contributed 52 per cent of total farm household income. This he suggests is a result of deliberate policy measures such as concentration on rural roads, irrigation and electrification, the construction of dispersed industrial estates, bonded factories, export processing zones, all within daily reach of the rural household.

Thus, part-time farming in developed and developing countries has a positive role to play, particularly in reducing income disparities between urban and rural people, and between disadvantaged regions and the rest of the economy. Policies for part-time farming should be reconsidered in the light of changing policy objectives. -49-

CHAPTER FOUR

THE INCIDENCE OF PART-IIME FARMING IN CYPRUS

4.1: The 1977 Census of Agriculture

In this chapter an attempt is made to assess the incidence of part-time farming in government-controlled Cyprus. Various data sources are used, and in order to compare these sources some discussion of the methods of data collection is needed.

The obvious starting point is the 1977 Census which involved total enumeration of all holdings. Information was collected, not only on farming activities, but also on such items as occupier's age and extent of off- farm activity. Results were published in two volumes (Department of Statistics and Research, 1979, a and b), the second providing information on employment in agriculture.

Before the incidence of part-time farming can be assessed, the problem of definition must be faced. The census provides information of off-farm activity for the entire agricultural workforce as well as for holders of agricultural land. In this study, it was decided to concentrate on the latter as they represent the farmers who may undertake other additional occupations. This approach takes no account of off-farm activities of other family members, but the results of the other surveys, to be discussed later, suggest this is not a serious omission.

The Census report distinguishes three categories of holders, namely (i) those with agriculture as their main occupation; (ii) those with a non-agricultural main occupation and agriculture as the second occupation; and (iii) those with a non-agricultural second occupation. We have assumed that the difference in numbers between categories (i) and (iii) represents the number of full-time farmers. Separate data are presented for each of 24 agro-ecological regions and these can be aggregated into four broad agro-ecological zones as outlined earlier. Results are presented in Table 4.1.

These results show that in all except the Vines Zone well over half of all farmers have off-farm occupations. HOwever, several points should be noted. Firstly, the data relate only to non-agricultural off-farm activities. Thus all those farmers who seek part-time employment on other farms -50-

Table 4.1: Incidence of Part-time Farming Numbers and (in brackets) Percentage of Zonal Total

Coastal Dryland Vines Mountain All Zone Zone Zone Zone Cyprus

Full-time farmers 6,406 6,864 4,260 2,849 20,379 (47) (28) (63) (38) (46) Farmers with part-time 390 366 510 184 1,450 off-farm work (3) (2) (8) (2) (3) Farmers with full-time 6,910 9,424 1,944 4,415 22,693 off-farm work (50) (70) (29) (60) (51)

13,706 16,654 6,714 7,448 44,522 Source: 1977 Census of Agriculture are omitted. Secondly it has been suggested that many with minor off-farm occupations may have failed to report them to census enumerators. For these reasons these statistics may underestimate the extent -of part-time farming.

On the other hand, it should be noted that the census included all holdings no matter how small. Indeed a few are recorded as 'landless holdings'. Overall 19 per cent of all holdings were of less than 5 donums. Presumably such very small holdings cannot be considered viable and the holders must have off-farm occupations. Thus the proportion of holders of viable holdings with off-farm occupations might be lower than estimated in Table 4.1.

Finally, it should be noted that some farmers are elderly and may continue farming as a hobby rather than as a full-time occupation. An analysis of the age distribution of holders, presented in the Census report, shows that 21 per cent are over 65 years of age, with considerable variation between zones (see Table 4.2). The Census report does not provide information on how holders over 65 years of age are distributed as between full- time and part-time farming. Nonetheless there is a case of separating this group from other categories of holders in the remaining analysis. It is also noteworthy that the proportions of holders over 65 years and of female operators are higher in the poorer and more remote Vines and Mountain Zones (see Table 4.2).

4.2: The Agricultural Statistics Survey

The Agricultural Survey is a stratified random sample survey conducted -51-

Table 4.2: Proportions of Aged (Over 65) and Female Holders by Zones (1977 Census) Per Cent

Coastal Dryland Vines Mountain All Zone Zone Zone Zone Cyprus

Holders over 65 years 14 20 32 28 21 Female Holders 6 8 12 13 9

Source: 1977 Census of Agriculture

annually by the Department of Statistics and Research of the Cyprus Ministry of Finance. The annual sample is of about 2,000 agricultural holdings, originally representing the whole island, but since 1974, restricted to the Government-controlled area. From 1978 the Agricultural Census has provided the sampling frame; the sample being stratified by holding size and by 24 agro-ecological regions into which the country is divided. The information collected by personal interview using a specially designed questionnaire, covers areas planted, crop production, farm inputs, employment and investment. An additional sample of about 1,000 livestock holdings provides information on numbers of productive animals.

In 1981, as an element of the present study, additional questions were incorporated in the questionnaire to provide data on the off-farm activities of the operator and the allocation of his time. Data from the 1977 Census on the distribution of farm sizes within regions were then used to raise sample statistics and give estimates of the characteristics of the whole population. (See Appendix B for details of raising formula). For instance, information on farmers' ages was collected from which we estimate the following proportions of over 65 year olds in the whole population of farmers:-

Coastal Zone 16 per cent; Dryland Zone 23 per cent; Vines Zone 37 per cent; and Mountain Zone 31 per cent; All Cyprus 25 per cent. A comparison of these figures with those derived from the 1977 Census and given in Table 4.2 suggests a steadily ageing farmer population in all zones. The majority (over 87 per cent) of these older farmers have no off-farm work.

Unfortunately, although accurate information was collected on most farm and farmer characteristics, there were obvious gaps in the records of off-farm work; for instance, where an off-farm occupation was reported but no information obtained on the time devoted to that occupation. Therefore in the agricultural survey for the following year, 1982, the same questions -52- on off-farm activity were included, and fuller records were obtained. The data were analysed at Reading to provide estimates of the incidence of part- time farming. Records of the number of months devoted to off-farm work were used to categorise holdings as: A. full-time farmers (with no off-farm work), B. farmers with part-time off-farm work (with between 0 and 9 months of off-farm work), and C. farmers with full-time off-farm occupations (9 months or more devoted to off-farm work). Again the 1977 Census was used for raising to arrive at estimates for the whole population. These are presented by zones in Table 4.3.

Table 4.3: Incidence of Part-time Farming Percentage of Zonal Totals

Coastal Dryland Vines Mountain All Zone Zone Zone Zone Cyprus

Full-time farmers 61 68 61 57 63 Farmers with part-time off-farm work 10 7 22 B 10 Farmers with full-time off-farm work 29 25 17 35 27

Source: Annual Agricultural Statistics Survey, 1982.

A comparison of these results for 1982 with the Census results for 1977 in Table 4.1, suggests major changes. In general the proportion of farmers in full-time farming seems to have increased except for the Vines Zone, and so too have the proportions engaged in part-time off-farm in the occupations. These differences are balanced by a general decrease that proportion with full-time off-farm occupations. It seems unlikely may such large changes should occur within five years and the differences (the be due to either differences in the definitions of part-time farmers incom- precise method of definition used in the Census is not recorded) or these plete recording in one or other of the investigations. Despite forms an differences we may fairly safely conclude that part-time farming regions of important and significant part of the agricultural sector in all Cyprus.

The data provided for the present study from the 1982 Agricultural the Statistical Survey did not include information on the legal status of such holders or their ages, although the previous year's study did provide information. However, it is desirable to exclude farms owned by the -53- church or commercial companies and restrict the analysis to privately owned holdings. Also a case can be made for treating farmers over 65 years old separately, since they are less likely than younger farmers to view the farm as a full-time commercial occupation. They are more likely to be hobby farmers. By combining the results of the 1981 and the 1982 surveys it is possible to estimate the proportions of part-time farmers, excluding non-privately owned farms and separating the over 65 year olds. Results of this exercise are given in Table 4.4. These findings suggest that only a minority of holdings are operated by full-time commercial farmers.

Table 4.4: Farmer Status by Zones (1981 & 1982) (Percentages)

Coastal Dryland Vines Mountain All Zone Zone Zone Zone Cyprus

Full-time farmers 4B 46 28 32 41 Farmers with part-time off-farm work 9 7 19 6 9 Farmers with full-time .off-farm work 27 24 16 32 25 Nor 65 years old 16 23 37 30 25

Source: Agricultural Statistics Surveys 1981 and 1982.

4.3: The Farm Management Survey, 1981

The Economics Section of the Agricultural Research Institute has, since 1980, carried out annual Farm Management Surveys to provide agricultural input-output data for agricultural planning purposes on a co-ordinated and continuing basis. The part-time farming study (Phase 2) was launched as data collection was about to start for the second year of the Farm Man- agement Survey. It was agreed to include an additional extensive questionnaire regarding time allocation to, and income received from,off-farm employment by farm family members.

This survey included 189 farms which, although not selected on the basis of a stratified random sample, nonetheless represent all the main agricultural regions. For each farm, information is provided on income and expenditure, cropping, stocking, capital investment and labour use. However, it only included farmers who actually reside in the village.

Proportions of farmers with part-time and off-farm occupations and the proportions of over 65 year old farmers are given in Table 4.5. Data Table 4.5:L+.5: Numbers (Percentages in brackets) in each Status Category by Regions

Coastal Dryland Vines All Zone Zone Zone Cyprus

Full-time farmers 41(46) 20(39) 15(31) 76(40) Farmers with part-time off-farm work 21(23) 8(16) 11(23) 40(21) Farmers with full-time off-farm work 18(20) 14(27) 16(33) 48(25) Over 65 years old 10(11) 9(18) 6(13) 25(13)

Source: ARI Survey

for the Mountain Zone are excluded since it was the subject of another study.* On the whole these proportions are similar to those obtained from the statistical sample survey, except that a higher proportion of farmers were recorded as having part-time off-farm work and rather fewer old farmers were included.

4.4: Village and Farmer Studies

These studies of selected households grouped in clusters of villages were designed to provide in-depth information on the social impact of part- time farming. Field work took place between February and November, 1982. In order to establish a comprehensive picture of the rural sector of Cyprus each of the main land-use zones, except the Mountain Zone, were included. Since the Coastal Zone is agriculturally the most diverse, four different clusters were chosen in this zone. Within each cluster, one central and three satellite villages were chosen in order to economise in travelling time and to ensure both prospering and declining villages were covered.

The six villages and their satellites selected are detailed overleaf:-

*As noted earlier, a study of agricultural pluriactivity was carried out in the Pitsilia Region early in 1982, so this zone was excluded from the present study. The study by Neocleous (1982) of the Mountain Zone showed only 2 per cent of families fully employed in agriculture, 13 per cent employed mainly in agriculture, 61 per cent employed mainly or entirely outside of agriculture, and 24 per cent retired. -55-

Central Village Satellite Villages Agro-economic Region Zone

(i) Kouklia* Nikoklia Paphos Coastal Coastal Yeroskipou Timi Pissouri Pissouri, Limassol

(ii) Erimi Ypsonas Limassol Coastal Coastal Trachoni Episkopi

(iii) Kiti Mazotos Larnaca Coastal Coastal Anaphotia Alaminos

(iv) Xylophagou Avogorou Kokkinochoria Coastal Liopetri Sotira Paralimni

(v) Pakhna Omodhos Vines Limassol Vines Arsos Dhora

(vi) Dhali Ayia Varvara Nicosia Mixed Dryland Alambra Farming Lymbia

Information about the village was obtained, using a formal questionnaire from village leaders, such as the village President (Muhktar), Rural Constable or Improvement Board official. Supplementary data relating to the village were extracted from the Agricultural Census, 1977, and other official sources. In this way a composite picture of each cluster of - villages was established, covering location, population (age distribution and composition), net migration, village amenities (education, health and recreation), transport facilities (type, destination and frequency), agriculture (cropping patterns, livestock numbers, structure of holdings and availability of water), employment opportunities within and outside the village, Government assisted projects, identified problem areas and future outlook for each village.

*Due to the unusually high proportion of 'Chiflik' or Government land which is rented to farmers in the Kouklia area, it was decided to include a fifth village in this cluster - Nikoklia - to gain a more representative picture of this region. -56-

It was recognised during the pilot study that for comparative purposes full-time farmers should be studied as well as those with off-farm occupations. Therefore, respondents were selected from the whole population of farmers. This method of sample selection afforded a measure of flexib- ility since it was not necessary to form an a priori definition of part-time farming because the sample included everyone active in agriculture.

The sample of farmers (and replacements) was drawn from the Rural Constable's taxation lists which are compiled annually for each village and include all people who are actively involved in agriculture on land located within a village, regardless of whether they live in that village or elsewhere, whether they operate their farm full- or part-time, and what- ever the nature of tenure. For each cluster 15 farmers were randomly selected from the major village and five from each of the satellite villages.

Composition of the initial sample was verified with village leaders to ensure all were actively involved in agriculture. People who held land merely for speculation or used land only for domestic purposes were excluded. To avoid double counting, farmers who were resident in another village which was also included in the survey were excluded from villages where they only held land. Refugees farming ex-Turkish Cypriot land were included in village samples in proportion to the amount of village land under Turkish-Cypriot ownership.

A total of 184 farmers were interviewed on repeat visits during the period February to November, 1982. Two questionnaires were completed for each respondent, the first covering farm data and the second relating to family structure and off-farm occupations, both current and in the past. The farm questionnaire provides information on farm size, cropping and stocking, fragmentation, access to plots, land tenure, irrigation methods, assets and loans, farm development, farm labour and performance of farm operations.* The 'farmer' questionnaire provides data on the family, its size, structure and education levels, employment history for each family member, characteristics of off-farm employment, and attitudes and aspira- tions for the operator and family members towards employment, migration, retirement and inheritance of the farm.

*These questions covered the total area operated by a respondent, including land located outside the survey village. Table 4.6: Numbers (Percentages in brackets) in each Status Category by Cluster

Kouklia Erimi Kiti Xylophagou Pakhna Dhali Total (Coastal) (Coastal) (Coastal) (Coastal) (Vines) (Dryland

A. Full-time farmers 8 (25) 3 (10) 5 (17) 13 (42) 3 (10) 4 (13) 36 (20) B. Farmers with part-time off-farm work 5 (16) 4 (13) 4 WO 7 (23) 7 (23) 9 (30) 36 (20) C Farmers with full-time .1 off-farm work 10 (31) 14 (45) 16 (55) 10 (32) 5 (17) 13 (43) 68 (37) C Urban dwellers 7 (22) 9 1 (4) 10 (33) 1 (4) 28 (15) .2 (29) D. Over 65 years old 2(6) 1 (3) 3(10) 1 (3) 5 (17) 3 (10) 15 (8)

32 31 29 31 30 30 183

Source: Reading/Cyprus Survey. -58-

An analysis of the incidence of part-time farming within the sample is presented by clusters in Table 4.6. In all clusters except Xylophagou, the proportion of part-time farmers is generally higher than in most previous investigations. However, information collected by the Department of Agriculture Beat Officers in 1981 for these same villages corresponds quite closely with the Reading/Cyprus Survey results (see Table 4.7).

Table 4.7: Allocation of Time by Working Population of Survey Village Clusters

Kouklia Erimi Kiti Xylophagou Pakhna Dhali

More than 50% to agriculture 27 10 36 62 16 16 10-50% to agriculture 61 26 27 44 54' 44 Less than 10% to agriculture 12 63 37 22 30 40

Source: Reading/Cyprus Survey

One reason for the different results may be found in the significant numbers of urban dwellers in the Reading-Cyprus sample (over 15 per cent). These are farmers who live in town and commute to the village to look after the farm. All but one of these urban dwellers have a full-time off-farm occupation in the town, the one exception being a widow with no off-farm occupation who lives in town and operates a small farm with the help of her sons. The numbers and proportions of urban dwellers with part- time farms in each cluster are presented in row C.2 of Table 4.6.

Urban-based farmers were omitted from the ARI sample which means that the extent of part-time farming was underestimated in that survey. A comparison with the Census results may suggest that part-time farming has increased, but it may reflect some under-reporting in earlier investigations. In any case, these findings support the conclusion that part-time farming is a major element in the structure of the agricultural sector in Cyprus. -59-

CHAPTER FIVE

THE CHARACTERISTICS OF PART-TIME FARMING

5.1: Farm Size and Structure

As suggested in the review of literature, part-time farming may be associated with land shortage or pressure on natural resources, which forces farmers to supplement their incomes by seeking off-farm employment. Alternatively, the farmer who adopts an off-farm occupation for other reasons, may wish to limit the size of his holding. In either case a negative association between extent of off-farm activity and farm size might be expected.

The available statistics provide some evidence in support of this hypothesis. First, we may refer to the Agricultural Census of 1977 which provides information on average size of holding and proportions of farmers with off-farm occupations by agro-economic region. A comparison of the means for the Vines Zone and the Mountain Zone is suggestive since the Vines Zone with above average holding size has a relatively small proportion of farmers with full-time off-farm occupations, while the converse is true for the Mountain Zone. However, the Dryland Zone has both the largest mean holding size and the highest proportion of farmers with full-time off- farm jobs. Clearly there are other influences affecting zonal data. Nonetheless, correlation analysis of data for the 24 regions shows a negative correlation of -0.4 between farm size and incidence of off-farm employment.

The total operated area was recorded for each holding in the 1982 Agricultural Statistical survey. Using these results, comparisons were made between the area operated by full-time farmers and those with part- time and full-time, off-farm occupations by zones. In the Coastal Zone a significant negative relationship exists between time allocation to off- farm work and holding size. Part-time farmers operate a significantly smaller area than full-time farmers. In the Dryland Zone those with full- time off-farm occupations operate a significantly smaller area than both full-time farmers and those with a part-time off-farm occupation, but the latter group operate the largest .area on average. For the Vines and Mountain Zones, no significant association between off-farm activity and holding size exists. The sample survey results were raised using the 1977 -60-

Census as sampling frame to give estimates for the whole population - see Table 5.1.

Table 5.1: Mean Operated Area by Zone and Operator Status Overall Estimates Based on Statistical Survey, 1982 (Donums)

Coastal Dryland Vines Mountain Zone Zone Zone Zone

A. Full-time farmers 40 40 32 12 B. Part-time off-farm 21 50 32 18 C. Full-time off-farm 15 23 31 11 B. Over 65 24 35 29 20

These results suggest a possible distinction between the Coastal and Dryland Zones of relatively large commercial farms where off-farm work is an alternative activity competing with farming for labour, and the poorer Vines and Mountain Zones, where the adoption of off-farm work does not seem to compete so strongly with farming activity, which suggests some disguised unemployment.

The Farm Management Survey Data collected by the Agricultural Research Institute shows a fairly clear negative association between area and off- farm activity as shown in Table 5.2.

Table 5.2: Mean Area of Land Operated by Zone and Operator Status (ARI Survey) (Donums)

Coastal Dryland Vines Whole Zone Zone Zone Sample

A. Full-time farmers 44.0 132.9 48.5 83.3 B. Part-time off-farm 33.6 68.7 53.6 46.2 C. Full-time off-farm 23.0 26.9 34.4 27.9 D. Over 65 20.0 43.0 19.7 28.2

The only exception to the general trend is found in the Vines Zone where the average farm size is somewhat higher for those with part-time off-farm work than for full-time farmers. Similar results are found for the area of land owned and the area cultivated, in that they all decrease with increased off-farm commitments (see Appendix C). It is interesting to note that two farmers in the Coastal Zone and two in the Dryland Zone own no land and rent in all the land they cultivate. -61-

Results from the Reading-Cyprus Survey are less clear since in all clusters,except Xylophagou and Pakhna,farmers with part-time off-farm work operate larger areas on average than full-time farmers (see Table 5.3). However, village-based farmers with full-time off-farm occupations invari- ably operate a smaller area. It is interesting to note that urban-based farmers, even though they have full-time non-agricultural occupations, operate relatively large areas of land compared with full-time farmers. Generally they have larger farms than village-based farmers with full-time off-farm jobs. It should be noted however that the Kouklia average for urban-dwellers is inflated by one Limassol-based business man who operates 1,200 donums of land.

Renting of land is fairly common although there is considerable variation in the area rented per farm. The pilot survey (Pearce, 1981) suggested that part-time farmers are less likely to rent land and if they do they rent smaller areas.

Both the ARI Survey and the Reading-Cyprus Survey show full-time farmers generally renting in considerably more land than part-time farmers (see Tables 5.4 and 5.5). Discrepancies occur in the Vines Zone, where very little land is rented-in, for the ARI Survey, and in Kouklia, Erimi, Kiti and Dhali for the Reading-Cyprus Survey. Nonetheless, results for the whole sample in each case show full-time farmers rent-in more land. The large area rented-in by full-time farmers in Pakhna is somewhat atypical since as suggested by the ARI Survey comparatively little renting occurs in the Vines Zone. From the 1977 Census it appears that only 7 per cent of the land farmed privately in the Vines Limassol Region (where Pakhna lies) is rented-in against 22.1 per cent for all Cyprus.

Given that renting agreements are likely to be more easily arranged in the short-term than private ownership, the tendency of part-time farmers to rent less land is likely to be an effect, rather than a cause of their having off-farm occupations. These findings may be interpreted as demons- trating that the area of land owned by the typical farmer is inadequate to provide an acceptable income or full employment. Off-farm employment or renting-in additional land are alternative solutions to the problem.

The theory that part-time farmers are driven to seek off-farm occupations because their holdings are uneconomic might suggest the hypothesis that part-time farms are more fragmented than full-time farms. Similarly, it could be argued that a larger proportion of part-time farm land might lie Table 5.3: Mean Area of Land Operated by Village Cluster and Operator Status Pakhna Dhali Whole Kiti Xylophagou Kouklia Erimi (Vines) (Dryland) Sample A. Full-time farmers 56.9 29.3 46.2 71.8 158.0 62.8 67.6 B. Part-time off-farm 136.0 43.0 63.0 53.0 44.6 96.6 74.7 C. Full-time off-farm 93.4 24.0 27.4 38.8 41.1 21.0 40.5 D. Over 65 31.5 8.0 27.7 32.0 31.6 49.0 32.7 Source: Reading/Cyprus Survey

Table 5.4: Mean Area of Land (Donums) Rented-in by Zone and Operator Status (Percentage of Area Operated in Brackets) Coastal Dryland Vines Whole Sample A. Full-time farmers 13.4(50) 120.9(67) 0.6(1) 40.9(49) B. Part-time off-farm 5.1(15) 17.6(26) 0.7(1) 6.4(14) C. Full-time off-farm 1.9(8) 1.6(6) 0.9(3) 1.5(5) D. Over 65 0.5(3) 4.8(11) 0.0(0) 1.9(7) Source: ARI Survey

Table 5.5: Mean Area of Land Rented-in by Cluster and Operator Status (Reading-Cyprus Survey) (donums) (Percentage of Area Operated in Brackets) Pakhna Dhali Whole Xylophagou Kouklia Erimi Kiti (Vines) (Dryland) Sample

A. Full-time farmers 52.0(91) 19.3(66) 25.4(55) 27.7(36) 113.3(72) 26.3(42) 39.1(58) B. Part-time off-farm 89.0(65) 21.7(50) 34.3(54) 13.3(25) 3.9(9) 50.8(53) 35.0(47) C. Full-time off-farm 38.0(41) 1.4(6) 6.2(23) 7.6(20) 0.3(4) 0.7(3) 9.0(22) D. over 65 26.5(84) 0.0(0) 7.3(26) 30.0(94) 0.0(0) 0.0(0) 7.0(21) Source: Reading/Cyprus Survey -63-

in other villages than the farmer's residence. Data obtained from the surveys do not support these hypotheses, in fact there is no clear association, between size of plots and operator status, see Table 5.6. In fact the pilot study (Pearce, 1981) suggested that part-time farms have markedly fewer plots per holding than do full-time ones.

Table 5.6: Fragmentation and Operator Status

ARI Survey Reading-Cyrpus Survey Means for Whole Sample Means for Whole Sample Plots per Donums Plots per Donums Holdings per Plot Holding per Plot

A. Full-time farmers 8.0 10.5 5.8 11.7 B. Part-time off-farm 7.1 6.5 8.1 9.2 C. Full-time off-farm 6.7 4.2 4.1 9.6 D. Over 65 5.2 5.5 6.2 5.3

SourOe: Reading/Cyprus and ARI Surveys.

Estimates of the proportion of total cultivated area lying outside the village of residence were obtained from the Reading-Cyprus Survey and are given in Table 5.7. The large differences between clusters of villages, may be noted, and the fact that, in general, full-time farmers tend to farm a larger proportion of their land outside the village than do part- time farmers. This evidence, together with the tendency for full-time farmers to rent-in more land, suggests thatwhile inherited land in one village may be sufficient to support a part-time family, full-time farmers are more likely to need additional land to provide an acceptable income.

Table 5.7: Proportion of Area Farmed, Lying Outside the Village (Percentages) . Full Kouklia Erimi Kiti Xylophagou Pakhna Dhall sample

A. Full-time farmers 16 55 22 45 41 24 34 B. Part-time off-farm 15 50 17 12 22 7 17 C. Full-time off-farm 13 34 17 9 20 10 19 D. Over 65 0 0 0 0 22 39 15

All Farmers 14 38 17 29 27 14 23 Source: Reading/Cyprus Survey. -64-

The final aspect of farm size and structure, considered here is the extent of irrigation. The results of the pilot study (Pearce, op. cit.) suggested that full-time farmers irrigate a larger area than do part-timers. Irrigated land is substantially more productive than dryland, so the area of irrigated land operated may be a better guide of the resources available than total operated area. Therefore we would expect full-time farmers to control more irrigated land per holding. Data from the agricultural statistical survey, the ARI Farm Survey and from the Reading-Cyprus Survey all support this hypothesis. However, irrigation is much more important in the Coastal Zone than elsewhere. It may also be noted that, in this zone, urban dwellers generally have larger irrigated areas than do full-time farmers. This may be interpreted as showing that they operate more intensive systems or that they control more resources and are perhaps wealthier than full-time farmers.

Raised estimates derived from the 1982 Agricultural Statistical Survey are given in Table 5.8. These figures show considerably more irrigated land per holding in the Coastal Zone, where the area irrigated declines with increasing off-farm work. In the other three zones, those with part-time off-farm work seem to irrigate a larger area than full-time farmers, but those with full-time off-farm occupations irrigate least of all.

Table 5.8: Area Irrigated per Holding (Donums)

Coastal Dryland Vines Mountain Zone Zone Zone Zone

A. Full-time farmers 14 3 1 2 B. Part-time off-farm work 9 6 1 4 C. Full-time off-farm work 4 2 1 2

Source: Agricultural Statistical Survey, 1982.

The Agricultural Research Institute Survey shows all Coastal region farmers to have some irrigated land whereas in the Dryland Zones only 20 per cent do, and in the Vines Zone 44 per cent. In both the Dryland and Vines Zones the areas are quite small. For the Coastal Zone, where irrigation is most widespread, there is a clear diminution of irrigated area with increasing off-farm work.

A similar tendency is found for the Reading-Cyprus Survey except in the case of Kouklia cluster where full-time farmers irrigate a relatively -65- small area, as shown in Table 5.9. Thus, in general, it seems safe to conclude that a full-time farmer controls a larger area of irrigated land than does his part-time neighbour.

Table 5.9: Area Irrigated per Holding (Reading-Cyprus Survey) (Donums)

Pakhna Kouklia Erimi Kiti Xylophagou Dhali Full (Vines) (Dryland) Sample

A. Full- time farmers 10 16 10 32 64 15 24 B. Part- time off-farm 21 21 11 6 C. Full- time off-farm 12 B 5 2 7 D. Over 65 0 0 0 7 19 6

5.2: Farming Systems and Intensity

There are two main hypotheses to be examined here; first, that part- time farms are simpler or more specialised and, second, that part-time farms are operated less intensively with lower labour input per unit area and consequent lower returns.

The pilot survey showed that part-time farms are relatively specialised with, on average, only two or three different crops per holding in all zones. However, there are fairly clear distinctions between zones in the main crops grown. For instance, citrus and vegetable production are concentrated in the Coastal Zone, while more cereals are grown in the Dry- land Zone, and vines are most common in the Vines Zone. The results of the Agricultural Research Institute Survey, shown in Table 5.10, suggest that whereas a bigger proportionate area of vegetables and cereals are grown on full-time farms, part-time farmers concentrate on citrus and possibly on vine growing.

These results may be explained, in part, by the marked seasonality of work on permanent crops, such as citrus and vines. It may be easier for part-time farmers to meet one or two concentrated work peaks on the farm, at harvest for instance, rather than to meet a more even demand for farm labour throughout the year. Another -possible explanation is that full-time farmers can grow annual crops like cereals and vegetables on land which is -66- rented-in, while owners of plantations of permanent crops may find it more attractive to farm part-time than to rent-out their plantations.

Table 5.10: Percentage of Operated Area Devoted to a Specific Crop

Citrus Vegetables Cereals Vines Coastal Zone Coastal Zone Dryland Zone Vines Zone

Full-time farmers 7 36 54 70 Part-time off-farm 15 16 41 77 Full-time off-farm 20 14 16 74 Over 65 years 19 0 21 79

Source: ARI Survey

The Reading-Cyprus Survey gave similar results except for cereals in the Dhali Cluster of the Dryland Zone, where urban-based part-time farmers grow a larger proportionate area (Table 5.11). However, there are indications that full-time farmers grow more labour intensive vegetables while part-time farmers tend to concentrate on permanent crops like citrus and vines.

Table 5.11: Percentage of Operated Area Devoted to a Specific Crop

. Citrus Vegetables Cereals Vines Kouklia & Coastal Dhali Pakhna Erimi Cluster

Full-time farmers 2 52 22 18 Part-time off-farm 9 24 46 63 Full-time off-farm 13 11 29 57 Over 65 years 35 20 81 70

Source: Reading/Cyprus Survey.

For the Coastal Zone only there are other indications of more intensive cropping on full-time farms. More full-time farmers practise double cropping, and own greenhouses than their part-time colleagues, while investment in irrigation equipment is higher on full-time farms (Table 5.12) The Reading-Cyprus Survey also showed a bigger area of double cropping on full-time farms in Erimi, Kiti and Xylophagou.

A consideration of livestock keeping on full,. and part-time farms, shows cattle keeping largely restricted to full-time farmers in the Dryland Zone, 15 per cent of whom kept dairy cows, with a mean herd size of nine -67-

animals. Sheep, goats and poultry are found more generally in all zones and on both full- and part-time farms. Means for the whole sample are given in Table 5.13. These figures suggest larger numbers of sheep and goats on full-time farms, but this is not the case for poultry.

Table 5.12: Features of Full-time and Part-time Farms, Coastal Zone

Proportion Proportion Investment per Holding Practising Owning In In Double Greenhouses Greenhouses Irrigation Cropping Equipment EC EC

A. Full-time farmers 37 15 141 1 ,017 B. Part-time off-farm 19 9 28 614 C. Full-time off-farm 11 6 62 BBB D. Over 65 years 249

Source: Reading/Cyprus Survey

Table 5.13: Livestock Numbers on Full- and Part-time Farms (Mean per Holding)

Sheep Goats Hens

A. Full-time farmers 17 8 1 B. Part-time off-farm 2 4 4 C. Full-time off-farm 1 1 3 D. Over 65 years 5 3 2

Source: Reading/Cyprus Survey

The overall impact of varying farm intensity may be assessed in terms of net farm income per donum of operated land. The results from the ART Survey given in Table 5.14, show strikingly higher returns per donum in the Coastal Zone. In this zone, the productivity per donum diminishes with increased off-farm activity as is the case in the Vines Zone. However, no such trend is apparent in the Dryland Zone. Thus, there is some evidence that full-time farmers use land more intensively but it is not conclusive.

Further evidence of the effect of part-time farming on the pattern of land use was derived from the Agricultural Statistical Survey of about 2,000 holdings in 1982. Comparisons were made between the three main categories of farmers within each agro-ecological zone using analysis of variance (Results are given in Appendix 0). -68-

Table 5.14: Land Productivity: Net Farm Income per Donum by Farmer Status

Coastal Dryland Vines Zone Zone Zone

A. Full-time farmers 144 33 40 B. Part-time off-farm 124 34 36 C. Full-time off-farm 90 33 35 D. Over 65 years 41 38 33

Source: ARI Survey

It was found that in all four zones, a larger proportion of the holding is under annual crops on full-time farms. The differences are significant in all but the Vines Zone. This may result from the generally higher and more continuous labour requirements of annual crops, but there are no significant differences between farmer status groups in proportion of the holding under permanent crops.

However, it appears that part-time farmers with full-time off-farm occupations in the Coastal and Dryland Zones leave a significantly larger proportion of their land uncropped. This evidence seems to suggest less intensive use of the land by part-time farmers.

5.3: Labour Use and Capital Investment

Clearly off-farm employment must compete with farm work for the operator's time. Thus the larger is his off-farm commitment, the fewer are the days he can spend on his farm. This effect could be compensated for, if wives and families of part-time farmers spent more time on farm work or if more labour was hired. However, the results of the ARI Survey suggest the opposite; namely that wives and other family members of part-time farmers work fewer days on the farm than do families of full-time farmers. Also, part-time farmers appear to. employ less hired labour in total. Since there are no obvious differences between zones in this pattern, results for the whole sample are presented in Table 5.15.

These results show a clear tendency for less labour to be used on part- time farm holdings than on full-time ones. However, as already shown, part-time holdings are smaller on average, and this may explain the lower labour input. In fact labour input per donum varies far less than the total farm labour input, and, if anything, appears slightly higher on part- time farms (see Table 5.16). -69-

Table 5.15: Labour Inputs on the Farm by Farmer Status, Days per Year

Other Family Hired Total Operator Wife Members Labour Labour

A. Full-time farmers 145 101 21 301 568 B. Part-time off-farm 107 93 4 245 449 C. Full-time off-farm 53 69 1 152 275 D. Over 65 years 53 49 12 120 234

Source: ARI Survey

Table 5.16: Labour Inputs per Donum by Farmer Status, Days per Year

Coastal Dryland Vines Whole Zone Zone Zone Sample

A. Full-time farmers 13 3 12 7 B. Part-time off-farm 14 5 10 10 C. Full-time off-farm 11 10 9 10 D. over 65 years 8 7 12 8

Source: ARI Survey

The Agricultural Statistical Survey of 1982 showed family labour inputs per donum to be significantly higher for holders with part-time off- farm occupations than for others in the Coastal and Vines Zones (see Appendix D). However, significantly more casual labour is hired on full- time farms in the Coastal and Dryland Zones. Thus we can reject the theory that part-time farmers substitute family and hired labour for their own labour. Rather they use less labour of all kinds in total by operating smaller and less intensive farming systems. Additional evidence of this tendency is the fact that in all four zones, significantly more labour is devoted to livestock work on full-time farms.

In the review of other studies of part-time farming it was suggested that part-time farmers invest more heavily in labour saving machinery and equipment than full-time farmers. This is supposed to result in a high capital-output ratio or a low average return on capital but high labour productivity on part-time farms. The Agricultural Research Institute Survey provides some evidence of higher investment per donum on part-time farms, although the variation between zones is much greater (see Table 5.17). For full-time or part-time farmers investment in total and per donum is considerably higher in the Coastal Zone than elsewhere. -70-

Table 5.17: Capital Investment on Farms by Farmer Status in Total and (in brackets) per Donum (EC)

Coastal Dryland Vines Whole Zone . Zone Zone Sample

A. Full-time farmers 11,234 10,381 6,391 10,054 (255) (55) (132) (178) B. Part-time off-farm 8,574 6,397 5,941 7,414 (255) (93) (110) (183) C. Full-time off-farm 7,025 3,628 4,213 5,096 (305) (135) (122) (194) D. Over 65 years 3,811 3,118 1,959 3,117 (191) (73) (100) (127)

All Farmers 8,947 6,620 5,008 7,319 (257) (86) (120) (176) Source: ARI Survey

A consideration of the farm income per EC of capital invested on the farm, presented in Table 5.18, shows some decline with increased off-farm activity. For the Vines Zone, the situation is reversed in that those with part-time off-farm work have a higher average product for capital investment. Nonetheless the means for the whole sample suggest greater efficiency of capital use on full-time farms.

Table 5.18: Farm Income per EC of Capital Investment by Farmer Status -3 Mils = EC x 10

Coastal Dryland Vines Whole Zone Zone Zone Sample

A. Full-time farmers 564 605 305 524 B. Part-time off-farm 486 367 323 417 C. Full-time off-farm 295 246 286 278 D. Over 65 years 215 530 330 356

All Farmers 453 456 306 416 Source: ARI Survey

Calculations of farm income per day of labour show no benefits of the higher investment per donum on part-time farms. The capital does not apparently substitute for labour in that average return to labour is greater on full-time farms (see Table 5.19). It is also noteworthy that average return per day of work in the Vines Zone is less than half that in -71- other zones. In short, although the evidence suggests that productivity, or efficiency of resource use, is somewhat lower on part-time farms than on full-time ones, the variation between agro-ecological zones may be greater.

Table 5.19: Farm Income per Day of Labour (EC)

Coastal Dryland Vines Whole Zone Zone Zone Sample

A. Full-time farmers 11 12 3 10 B. Part-time off-farm 9 B 4 7 C. Full-time off-farm B 3 4 5 D. Over 65 years 5 5 3 5

All Farmers 9 B 4 7 Source: ART Survey

5.4: Summary

Survey results presented in this chapter suggest several useful conclusions, regarding part-time farms. First, part-time farms appear to be smaller than full-time farms on average, especially in terms of irrigated area. However, there is no evidence to suggest more fragmention or inconvenient farm layout as a cause of part-time farming. Full-time farmers apparently need to rent-in more land than do part-timers.

There is some evidence of off-farm activity having an impact on farming systems. Labour intensive crops like vegetables and large livestock seem to be concentrated on full-time farms, whereas part-time farmers grow more permanent crops such as vines or citrus which have comparatively low labour inputs. Double-cropping and greenhouse production occurs more commonly among full-time farmers in the Coastal Zone.

Nonetheless, it appears that overall intensity of production is somewhat higher on part-time farms, if measured in terms of labour inputs or capital investment per donum. Net farm income per unit of resource use is generally higher on full-time farms for land, capital and labour: These results suggest that part-time farming is somewhat less efficient than full- time farming in using limited reosurce. However it should be remembered that part-time farmers produce additonal income from their off-farm occupations so their total productivity may be greater than that of full-time farmers. Furthermore, it is noteworthy that productivity per donum of land -72- is much higher in the Coastal Zone than elsewhere while returns to labour are much lower in the Vines Zone than elsewhere. These inter-zonal differences are generally greater than differences between full-time and part-time farmers. -73-

CHAPTER SIX

OFF- FARM OCCUPATION

6.1: The Incidence of Off-farm Work

The figures quoted in this chapter are based principally upon the results of the Reading-Cyprus Survey, supplemented by the ARI Survey data for 1981. The Reading-Cyprus Survey investigated off-farm employment for all members of the sampled households who were currently living in the operator's home. Results are presented in Table 6.1. Only 36 (20 per cent) of the farmers interviewed had no off-farm occupation. Of these 36, four had wives with off-farm jobs, nine had one child working off the farm and four had two children with off-farm jobs. In only about 13 per cent of cases therefore was the farm household totally dependent on farm income.

There is the added possibility that children working, but not living at home, might contribute to the farm household income, but this was thought unlikely to be a major additional source of farm household income.

There are few cases of working children who have part-time off-farm jobs. There were 62 children who were living at home with off-farm jobs. Only 6 of these had part-time or seasonal off-farm work, the rest all had full-time jobs. Most of them however still made a contribution to the farm labour supply. Working wives however were more widely scattered across different categories of work - full-time, regular part-time and seasonal. Only 20 per cent of farmers however had wives who did any off- farm work. Fourteen of the nineteen wives with full-time off-farm jobs had husbands who also had full-time off-farm jobs. In fact, working wives generally seem to come from farms where the operator has a full-time off- farm job.

6.2: Days Working by Operator and Family Members Off- and On-farm

Details of labour inputs on the farm were given in Tables 5.15 and 5.16. Whilst total labour inputs are larger on full-time farms, this is mainly because they are larger. Labour inputs per donum do not vary in any systematic way. Another important conclusion from Table 5.15 and 5.16 is that hired labour is not used on part-time farms to such an extent as on full-time farms. Table 6.1: Nature of Off-farm Occupations of Family Members

Operator Status TYPE OF OFF-FARM WORK None Full-time Part-time Seasonal

Wife A. Full-time farmers 32 2 0 2 B. Part-time off-farm 31 1 2 1 C. Full-time off-farm 70 14 9 4 D. Over 65 years 12 2 0 1

145 19 11

Eldest Child A. Full-time farmers 27 9 0 0 B. Part-time off-farm 24 10 1 0 C. Full-time off-farm 78 18 0 1 D. Over 65 years 10 4 0 1

139 41 2 2

Second Child A. Full-time farmers 31 4 0 1 B. Part-time off-farm 31 4 0 0 C. Full-time off-farm 92 5 0 0 D. Cver 65 years 12 2 1 0

166 15 1 1

Source: Reading/Cyprus Survey

Any conclusion about the relation between part-time farming and labour productivity needs howver to take into account both on- and off-farm work. In Table 6.2 days worked off- and on-farm are compared for different categories of farmers. There is clear evidence that part-time farmers work longer hours than their full-time equivalents. The small number of days worked by full-time farmers does suggest a substantial extent of underemployment, even allowing for the fact that full-time farms tend to be larger than part-time ones.

The hours worked off-farm by other family members are recorded in Table 6.3. Most children with off-farm jobs work full-time in those occupations, but wives, on the whole, work fewer hours. This is consistent with the figures in Table 5.15 which show that children do not make a large contribution to the farm labour force on any categories of farms, although their work is rather more important on full-time farms. -75-

Table 6.2: Days Worked On- and Off-farm by Operator

Days Worked Days Worked Total Days On-farm Off-farm Worked

A. Full-time farmers 145 - 145 B. Part-time off-farm 107 115 222 C. Full-time off-farm 53 261 314 D. Over 65 years 53 126 179

Source: ARI Survey

Table 6.3: Days Worked Off-farm by Family Members by Operator Status (No. of Cases in Brackets)

Wife Eldest Child Second Child

A. Full-time farmers 100 (1) 300 (13) 300 (B) B. Part-time off-farm 100 (5) 254 (B) 300 (1) C. Full-time off-farm 90 (2) 294 (11) 242 (3) D. Over 65 years 300 (1) 300 ( 3) 300 (1)

Source: ARI Survey

6.3: Sector of Employment

There is a marked concentration in the sectors of employment into which part-time farmers or their families move. Agriculture, Wholesale and/Retail trading and Construction provide 53 per cent of the jobs of part- time farm families. Agriculture is a particularly important employment area for farmers with part-time off-farm jobs. These jobs were often as contractors or as seasonal or temporary labourers on other farms.

It has been suggested that the two sectors of the eocnomy where labour productivity is low are agriculture and trading. The high incidence of part-time farming and the bigger labour inputs of part-time farmers suggest however that this 'surplus' of agriculture labour may be less than supposed. Low labour productivity in trading activities is also over-estimated, at least to the extent that some of them are part-time farmers. A summary of the off-farm employment by economic sector for all family members is given in Table 6.4.

6.4: Employment Status

A high proportion (62 percent) of farmers with part-time, off-farm occupations are self-employed. Most of the remainder (30 per cent) in this -76-

Table 6.4: Off-farm Employment by Economic Sector

First Second Operator Wife Total % Sector Child Child

Agriculture 18 8 1 0 27 12 Manufacturing 17 8 9 4 38 17 Electricity/Gas 2 0 1 0 3 1 Construction 17 0 5 5 27 12 Wholesale/Retail Trade 32 15 9 1 57 25 Transport 17 0 6 2 25 11 Public Administration 4 1 3 2 10 4 Other Services 13 7 9 3 32 14 SBA+ 7 0 1 0 8 4

127 39 44 17 227 100 Source: Reading/Cyprus Survey category are seasonally employed casual workers. Farmers with full-time off-farm occupations however tend to be salaried (52 per cent) or wage earning (15 per cent) and only 24 per cent were self-employed .

Most children had salaried or wage earning jobs and wives were, in general , casually employed.

6.5: Formal Qualifications and Training

The income earning potential of farmers from off-farm work depends partly on whether they have formal qualifications or whether they have undergone any formal training which increases their usefulness in other areas of work.

The great majority of the farmers surveyed had no formal qualifications, neither had they done any formal training. Almost 95 per cent of the sample answered 'No' to both these questions.

The situation is different for farmers' children living at home and having off-farm jobs. Thirty per cent of these had formal qualifications and 27 per cent had received training. None of the wives of the respondent farmers had any formal qualifications or had received formal post-school training.

6.6: Off-farm Income

A crucial aspect of the incidence of part-time farming is its effect on total household income. The ARI Survey includes a full financial income analysis of the farm business and includes questions on off-farm -77- sources. A summary of the results for the 1981 harvest year appears in Table 6.5. The data are presented by zones.

Table 6.5: Income from On- and Off-farm Employment

COASTAL DRYLAND VINES Farm Off- Total Farm Off- Total Farm Off- Total farm farm farm

A. Full-time farmers 5,850 5,850 5,429 - 5,429 1,869 1,869 B. Part-time off-farm 3,634 1,334 4,968 2,192 728 2,920 1,742 801 2,543 C. Full-time off-farm 1,837 2,142 3,979 845 1,509 2,354 978 1,049 2,027 D. Over 65 years 718 1,160 1,878 1,604 588 2,192 602 700 1,302

Source: ARI Survey

There are a number of conclusions to be drawn from Table 6.5. Firstly, the total income of full-time farmers is much higher than for any other category in the Coastal and Dryland Zones. Secondly, for those with part-time off-farm occupations, in all zones, farm income represents 70-75 per cent of total operator's income. Thirdly, for those with full-time off-farm activities income source is divided roughly equally for farms in the Coastal and Vines Zones, whilst off-farm income is the dominant source in the Dryland Zone. Fourthly, the low farm income in the Vines Zone contrasts strikingly with the farm incomes in the Coastal Zone and larger farms in the Dryland Zone. Net farm income per donum, however, does not vary much between the Dryland and Vines Zones.

In Table 6.6, employment and income have been compared for on- and off-farm work, and the average return per day's labour calculated. The results show consistently that average returns to labour are highest for farm work. The only exception is the the over 65's in the Coastal Zone. There were, however, only three farmers in this category so the results are not very significant. Individuals will make decisions on the allocation of their labour time on the basis of the marginal rather than average product of labour, so the results do not imply inconsistency in farmers' behaviour.

The tendency for income per day from farm work to fall as farm size decreases is also not unexpected as diminishing returns to labour will be more severe and marginal returns to labour will be lower. Table 6.6: Farm Size, Employment and Income by Zone

Average Size Labour (Days/Year) Income Income/Day of Farm On- Off- Total On-* Off- Total On- Off- Total No. farm farm EC EC EC EC EC EC

COASTAL A. Full-time farmers 44.0 263.0 263.0 5,850 - 5,850 22.2 22.2 B. Part-time off-farm 33.6 201.0 102.6 303.6 3,634 1,334 4,968 18.1 13.0 16.4 C. Full-time off-farm 23.0 113.0 274.7 387.7 1,837 2,142 3,979 16.3 7.8 10.3 D. Over 65 years 20.0 73.0 41.0 114.0 8 1,160 1 878 9.8 28.3 16.5

DRY LAND A. Full-time farmers 189.9 268.0 160.0 5,+29 - 5,1+29 20.3 33.9 B. Part-time off-farm 68.7 149.0 69.7 218.7 2,192 728 2,920 14.7 10.4 13.4 C. Full-time off-farm 26.9 123.0 270.8 393.8 845 1,509 2,351+ 6.9 5.5 6.0 D. Over 65 years 43.0 161.0 250.0 411.0 1 604 588 2 192 10.0 2.3 5.3

VINES A. Full-time farmers 48.5 275.0 275.0 1,B69 - 1,B69 6.8 6.8 B. Part-time off-farm 53.8 249.0 89.2 338.2 1,71+2 801 2,51+3 7.0 9.0 7.5 C. Full-time off-farm 34.4 149.0 236.8 385.8 978 1,049 2,027 6.6 4.4 5.3 D. Over 65 years 19.7 114.0 120.0 334.0 602 700 1 302 5.3 5.8 3.9

Source: ARI Survey

*Income refers to family farm income which consists of net profit + imputed rent + family labour cost + imputed interest cost. -79-

The Vines Zone presents a different picture. Full-time farming is not as profitable as in either of the other two zones. Returns per day to farm work increase, in fact, as the amount of off-farm work increases. It would appear that there are less scale advantages in the Vines Zone and that part-time farming is a response to overall low income generating potential of agriculture rather than an option for the smaller farmers.

Off-farm income for other family members has been calculated and compared with hours worked off-farm. The results are shown in Table 6.7.

Table 6.7: Days Worked Off-farm and Off-farm Income for Family Members

WIFE - ELDEST CHILD SECOND CHILD Days Income/ Income/ Days Income/ Income/ Days Income/ Income/ Wage Wage/ Wage Wage/ Wage Wage/ Day Day Day EC EC EC EC EC EC

A. Full-time farmers 100 500 5.0 300 1,546 5.2 300 1 ,029 3.4 B. Part-time off-farm 100 297 3.0 254 1,337 5.3 300 840 2.8 C. Full-time off-farm 90 240 2.7 294 1,283 4.4 242 585 2.4 D. Over 65 years 300 1,404 4.6 300 1,795 6.0 300 900 3.0 Source: ARI Survey

6.7: Work Location

Another important characteristic of off-yam employment is that operators' off-farm work is normally in the same village in which they farm. • Only 15 per cent of the operators had jobs based in towns. This was true in each of the three zones covered in the Reading-Cyprus Survey-. Rather more operators (22 per cent) with full-time, off-farm jobs worked in towns.

The situation is the same for farmers' wives but almost without exception offspring with off-farm jobs travelled daily to towns. This suggests that the situation may change in the future. At the moment offspring provide only a small input to the farm labour supply (see Table 5.16) and so full-time, town-based off-farm work is feasible. When the next generation of farmers take over from their parents more of a conflict will appear between farm and off-farm work. CHAPTER SEVEN

PART-TIME FARMERS AND RURAL SOCIETY

7.1: Family Characteristics

For the Reading-Cyprus sample, 96 per cent of operators were married males. One widowed and three unmarried males all had full-time off-farm occupations. There were three widowed females, one of whom was a full- time farmer, one had part-time off-farm work and one had a full-time off- farm occupation.

Farmers with part-time off-farm occupations had the youngest age structure (Table 7.1), and the largest number of dependants to support (Table 7.2). Of this group, 60 per cent had at least four dependants. They included the highest proportion of families with children under 17 years old and the lowest proportion with children aged 17 and over.

Table 7.1: Operator's Age and Status Numbers (Percentage in brackets)

Age (Years) Mean Operator Status Under 40 40 to 55 55 to 65 Age

Full-time farmers 10 (28) 16 (44) 10 (28) 46.1 Part-time off-farm 13 (37) 15 (43) 7 (20) 43.5 Full-time off-farm 24 (34) 35 (50) 11 (16) 43.7 Urban dwellers 3 (11) 19 (70) 5 (19) 47.9

Table 7.2: Association Between Total Number of Dependants and Operator Status. Numbers (Percentages in Brackets)

Mean Operator Dependants No. of Status 1 2 3 L+ Depen- dants

Full-time farmers 4(11) 6(17) 8(22) 10(28) 8(22) 3.3 Part-time off-farm 2 (6) 6(17) 6(17) 8(23) 13(37) 3.7 Full-time off-farm 8 (8) 15(16) 32(32) 27(28) 15(16) 3.3 Over 65 5(33) 7(47) 2(13) 1 (7) 0 -81-

At the other extreme, farmers aged 65 or over had fewest dependants. All their children living at home were at least 17 years old. In addition, 87 per cent of these elderly farmers had children who had already left home.

Farmers with full-time off-farm jobs were typically between 40 and 55 years and full-time farmers were over-represented amongst the 55 to 65 year group. Their family composition falls between the extremes mentioned above, with full-time off-farm workers' children generally being younger than those of full-time farmers. Only a small proportion across the whole sample of those with full-time other occupations have non-dependant children (32 per cent).

In addition to spouse and children to support, approximately 18 per cent of each operator group had elderly parents living with them permanently. Farmers over 65 were the exception, with only one case occurring.

Operators' wives had a similar age structure to that of their husbands, but their average age was younger. For example, 73 per cent of the wives of over 65 year old farmers were under 65 years, and 43 per cent of part-time farmers' wives were under 40 years.

7.2: Education and Training

Years in full-time education and experience of training is positively associated with part-time farming. Those with full-time off-farm jobs dominate the group who spent at least four years in secondary education (Table 7.3), and these were the only respondents, other than one old age 1 pensioner, to receive further education. Vocational training had been undertaken by 22 per cent of full-time farmers, 17 per cent of those with part-time off-farm occupations, 33 per cent of those with full-time jobs and one over 65 years old. In most cases, at least four years in secondary education was a pre-requisite for further studies.

These associations with operator status in part reflect relationships with operators' age. Within each employment group, age was generally inversely associated with education and training. Hence part-time farmers

1 0f those with full-time jobs, 7 per cent studied abroad, 2 per cent foreign correspondence course, and 9 per cent further education or formal training in Cyprus. One older farmer completed a foreign correspondence course. -82-

typically aged under 55 years, tended to receive more education and training than full-time farmers. The higher education attainments of urban-based farmers is particularly marked.

Table 7.3: Association between Primary and Secondary Education and Operator Status. Number (Percentages in brackets)

SECONDARY EDUCATION Operator Status PRIMARY 1-3 years 4-6 years

Full-time farmers 31(86) 2(6) 3(8) Part-time off-farm 27(77) 4(14) 3(9) Full-time off-farm 55(77) 2(3) 14(20) Urban dwellers 9(33) 9(33) 9(33) Over 65 years 13(87) 9(0) 2(13)

Spouses spent fewer years in education than operators, with 84 per cent receiving no more than primary education. Experience of secondary education and training was inversely associated with age; 23 per cent of the under 40's group had attended the gymnasium and 37 per cent received training. In total, 20 per cent had undertaken training, the majority with a vocational content; only two had pursued formal training in Cyprus and one abroad.

The average number of years in education has risen dramatically between generations. Referring to the highest level of education attained within families by children who had completed their education, 95 per cent of families had at least one child who has spent more than three years in the gymnasium. In addition, 34 per cent had children having studied abroad, 7 per cent with formal training in Cyprus and 17 per cent with vocational training. The highest incidence of children pursuing further education abroad occurred amonst the over 65 year olds.

With regard to operators' plans for children who had not yet completed their education, all expected them to spend at least three years at the gymnasium. Of full-time farmers with children still in education, 70 per cent hoped their children would study abroad - in contrast with 54 per cent of those with full-time off-farm occupations.

7.3: Residence and Migration

There were some differences in the migration patterns among different categories of operators. Migration rates were lowest among farmers with -83-

part-time off-farm work and the Over 65 year olds, with less than 20 per cent having moved from their original residence. The principal reason for respondents moving into survey villages. was marriage or because they were refugees from the North following the invasion of 1974.

Thirty one per cent of full-time farmers had left their original village. The major reason for this was again that they were refugees from their original home villages, although two had moved as a result of marriage.

It was the farmers with full-time off-farm work who displayed the greatest and most diffuse pattern of migration - with 44 per cent having left their original village. Although the situation is more complex than for other categories, the general trend persists. The main movement into survey villages was a result of marriage, while movement outwards was to towns for employment. Additional reasons given for moving to towns were the better child care facilities and the pursuit of further education.

The net effect of migration on the residence of respondents is shown in Table 7.4.

Table 7.4: Current Residence by Operator Status Number (Percentage in Brackets)

Survey Neighbouring Nearest Village Village Town

Full-time farmers 32 (89) 3(8) 1(3) Part-time off-farm 36(100) 0 0 Full-time off-farm 65 (68) 3(3) 28(29) Over 65 years 15(100) 0 0

Source: Reading/Cyprus Survey.

Two extremes of residential pattern are shown in Table 7.4. On the one hand all farmers with part-time off-farm occupations lived in the village whilst 29 per cent of those with full-time off-farm jobs, lived elsewhere, and mainly in the nearest town. Different degrees of off-farm activity therefore produce different migration patterns.

With regard to retirement, almost all farmers living in villages planned to stay there when they retired. One third of urban based farmers intended to return to live in their villages when they retired from off-farm work.

In all, 35 farmers lived outside the villages in which they farmed land. -84-

Several suggested that this posed no particular problems, but others regarded the cost in both time and money of travelling to their farms was a disadvantage. It was, without exception, those with full-time off-farm jobs who found their distance from the farm a particular disadvantage.

The amount of travelling associated with off-farm work was limited. Fifty nine per cent of farmers with off-farm jobs and living in villages, also worked in those villages. Eighty five per cent of those living in towns worked in town. About one half of those who travelled said that this created problems (those who relied on village buses were prominent in this group).

Children left their parents' villages through marriage (39 per cent), employment (37 per cent), as refugees (12 per cent) or as students (9 per cent). Few children left home before they were married. The destinations of children leaving their parents' homes is shown in Table 7.5.

Table 7.5: Current Residence of Married Children by Operator Residence Number (Percentage)

Children Operator Residence Residence Village Town

Village 44 (41) 0 Neighbouring Village 7 (6) 0 Nearest Town 15 (14) 7 (70) Another Village 7 (6) 1 (10) Another Town 16 (15) 1 (10) Overseas 20 (18) 1 (10) Total Number of 1 109(100) 10(100) Destinations Question not relevant = 108 farmers (with no married children). 1 Refers to different locations rather than the absolute number of children migrating to any one location.

links A significant number of urban-dwellers maintain their village than through part-time farming. This group appears to be better educated the majority of the rural population and many are self-employed in business or the professions. They operate larger farms with more irrigated land than village-based farmers with full-time off-farm occupations. Potenti- ally, these urban-based part-time farmers could provide dynamic and available sophisticated leadership to village communities. However, the somewhat evidence suggests that their involvement in village society is limited. -85-

If attitudes do not change radically in future, the pattern of rural- urban migration of farmers' offspring linked with the desire to retain family land is likely to lead to an increase in urban-based farming. Thus, even though the proportion of the population residing in rural areas may decline, the agricultural labour force will fall less rapidly. Commitment to the land and farming is examined in more detail in the following section.

7.4: Farmers' Motivation and Commitment to Part-time Farming

Only 12 per cent of the farmers interviewed had never had off-farm work. The most important route into part-time farming was an involuntary one. Thirty six per cent of part-time farmers had become so as a result of inher- iting land or receiving it as dowry when they were already fully employed in off-farm work. Most of these continued with their full-time off-farm jobs but eight changed from full- to part-time work. Two gave up off-farm work altogether. A very small proportion of the sample (5 per cent) deliberatqly entered the agricultural sector. For those it was either the security offered by land ownership or interest, which was their motivation. Other farmers became part-timers from the other direction as they had been full- time farmers, but the poor income generating capacity of their farms had forced them to seek additional income sources. This applied to 21 per cent of those interviewed. As would be expected, most of the farmers with full-time off-farm jobs had come into the sector from outside it, whilst those with part-time off-farm jobs were more likely to have previously been full-time farmers.

Most farmers felt that they were able to combine on- and off-farm work successfully, apart from the obvious cost in terms of long working hours (which is substantiated by the data in Table 6.2). Some farmers minimised any potential conflict by deciding to give priority to one or other activity, or by adapting the nature of their on- and off-farm activities. The on- farm adaptations have already been discussed (see Chapter 4). Adaptation in off-farm work took the form of a preference for self-employment, shift, casual or seasonal work.

7.5: The Motivation for Continuing to Farm Land

Given that many people become part-time farmers by chance or involun- tarily, and that it does involve substantial costs in terms of foregone leisure, one begins to question why people with off-farm occupations continue to farm their land. -86-

Motives for farming were both financial and non-financial. Most frequently people farmed for the personal satisfaction they derived (30 per cent of farmers with off-farm occupations). Other non-pecuniary motives included fulfilling traditional obligations, particularly if they had received land from parents or as dowry, or as a means of maintaining contact with their home village (19 per cent), the attraction of holding land as an asset (6 per cent), and utilising free time (3 per cent).

Many farmers with off-farm occupations (21 per cent) regarded farming as their livelihood, including a few who had full-time off-farm jobs. Some of those seeking extra income through pluri-activity (21 per cent), saw part-time farming as a route to survival by combining farm with off-farm incomes, whilst for others it represented an opportunity to invest off-farm earnings in agriculture.

Those with full-time off-farm occupations referred to traditional obligations much more frequently than others, as a reason for continuing farming. Indeed, traditional obligations and the attraction of land as an asset were scarcely mentioned outside this group.

7.6: Conditions Under Which Farmers Would Cease Farming

Having established that farmers were prepared to farm land for a variety of motives, this section takes farmers' commitment to agriculture one stage further by considering the conditions under which they would cease farming.

Over half of the sample (54 per cent) stated they would leave agriculture only when they are unable to work due to old age or poor health, and envisaged farming at least part of their land after retirement. This was expressed most frequently by farmers with part-time off-farm occupations, perhaps indicating that their contact with off-farm work had reaffirmed their interest in agriculture, or that, with the certainty of off-farm work, they felt less vulnerable to the vagaries of agriculture.

Others (14 per cent) would stop if their personal circumstances changed - retiring, passing land on to children or no longer needing extra income because their children were settled. As might be expected, this comment was most common among the over 65 year old farmers.

For the remainder, their involvement with farming was dependent upon their farming circumstances. Some felt threatened by water shortage (12 per cent), and others by low farm profitability (10 per cent) or labour -87-

constraints (6 per cent). A few commented they would cease farming if there was no land available to rent or if legislation became too restric- tive.

The majority (74 per cent) had no plans to sell their land, usually commenting that tradition or their children encouraged them to keep it. A few (9 per cent) were keen to sell, usually for tourism or building plots, or to rationalise their holdings. One group (11 per cent) were prepared to sell land in order to realise the value of their asset to finance children's education or daughter's dowry. Others (6 per cent) would like to sell but were frustrated by lack of demand and poor land prices.

7.7: Farmers' Preferred Employment Status

Given the opportunity, the majority of the sample (70 per cent) would prefer to be full-time farmers. They were attracted to farming because they enjoyed working with the land, derived satisfaction from working for themselves, or came from farming families. This group included over 80 per cent of full-time farmers. At the other extreme, only 8 per cent would choose to abandon all farm work and become full-time off-farm workers.

Almost one quarter of the sample (22 per cent), including one third of those with full-time jobs, would prefer to be part-time farmers. Full- time farmers would seek this status for income security, whilst part-time farmers, with experience of off-farm work, noted the benefits dual occupation offered; more variety, the security of off-farm income to back uncer- taih agricultural income, the ability to earn extra income and to utilise free time, the opportunity to invest income earned off-farm in agriculture_ as a form of saving, and the social status afforded by off-farm work.

Although many were keen to become more involved in agriculture, two thirds of the sample commented they had no opportunities to extend their farming interests. Reasons cited included the shortage of land and water, and personal factors (lack of time or money to invest in farming). One third, especially those with part-time off-farm work, were more optimistic, but in part this was dependent on the Government taking action by providing infrastructure or initiating new policies to help specific sectors.

Availability of off-farm employment did not generally prove to be a problem: of those operators who had sought off-farm work, 80 per cent had no difficulty in finding it. However, none of those who stated they would prefer full-time off-farm employment actually intended to leave -88- agriculture; their mobility was constrained by an attachment to farming rather than difficulties experienced in gaining off-farm employment, or by old age, or by a lack of education and training.

7.8: Plans for Succession

The inheritance system is a central feature of land tenure in Cyprus: approximately two thirds of the sample had received land either from their parents or as dowry or both. Receiving land was the most common route into part-time farming; hence farmers' plans to allocate their land amongst their children may provide a guide to the future composition of the farm sector.

Generally, farmers were reluctant to move away from the traditional method of dividing land equally between children. Only about 18 per cent of the sample intended to allocate their land selectively, with plans ranging from forming limited companies, and other measures to avoid sub- division, to giving more land to one or two children, depending on their personal circumstances.

7.9: Outlook for Part-time Farming

If Government policy remains unaltered, the composition of the agricultural sector is unlikely to change very much.

The persistence of the traditional inheritance system suggests that land ownership will continue to be widespread within Cypriot society. Nothing has yet appeared to break the mould by which people who inherit land choose or feel obliged to farm it. This very process is also responsible for the tendency for full-time farmers to seek off-farm work. As farms become smaller, and in the face of other economic pressures, some farmers are forced to augment earnings by non-farm work.

7.10: Communication Media

The use of communication media varies between farming groups and this has implications for those responsible for disseminating information to the farming community.

Overall, the sample established regular contact with TV farm programmes and general printed matter (newspapers and magazines), and little contact with extension meetings and agricultural magazines (Table 7.6).

Patterns of media use differed between farmer groups. Farmers with -89- full-time off-farm occupations were more likely than others to have regular contact with general mass media (35 per cent had frequent contact with radio, 55 per cent with TV and 77 per cent with printed matter) and, to a lesser degree, with mass media tuned to the agricultural sector (20 per cent agricultural magazines).

In contrast, full-time farmers usually turned to personal sources of information, both with individuals (49 per cent had frequent contact with staff from the Department of Agriculture, 51 per cent with salesmen, and 53 per cent with village leaders) and with groups (31 per cent were regular attenders at extension meetings and 31 per cent exhibitions). The only personal source those with full-time off-farm jobs contacted frequently was marketing agents (31 per cent).

Farmers with part-time jobs were less consistent, turning to mass media (54 per cent TV and 40 per cent farm radio) as well as personal contact (49 per cent salesmen and 43 per cent village meetings). The old farmers relied mainly on agricultural mass media (40 per cent farm radio, 67 per cent farm TV and 20 per cent agricultural magazines).

Table 7.6: Percentage Distribution of Frequency of Contact by Communication Media

Media - Frequency of Contact (Sample %) Never Seldom Occasional Frequent

General mass media Radio 0 32 43 25 TV 1 11 38 50 Printed matter 6 12 25 57 Agricultural mass media Farm radio 12 24 31 33 Farm TV 3 8 29 60 Agricultural magazines 38 24 19 - 19 Personal contact Department of Agriculture 18 24 25 33 Salesmen 6 11 40 43 Marketing agents 17 20 35 28 Village leaders 13 19 20 48 Group contact Extension meetings 41 26 19 14 Village meetings 25 9 27 39 Exhibitions 26 26 20 28 -90-

These patterns stem in part from residence. At one extreme, full- time farmers, predominantly village-based, focus on individual and group information sources locally available. At the other, those with full-time off-farm work, many of whom live in town, make wide use of impersonal sources of information and with people they contact during their farming operation.

Thus, the medium used to convey information to farmers should be adapted to each target audience. General mass media offers a certain route to reach the farming community at large. In order to reach full-time farmers this could be supplemented by channelling information through key figures within the farming community. -91-

CHAPTER EIGHT

POLICY CONCLUSIONS

8.1: Summary of Findings

8.1.1: Incidence of part-time farming

Part-time farming is common in all regions of Cyprus. Although it is difficult to identify trends in its incidence, a majority of farmers in each of the four zones have off-farm occupations. Many current full-time farmers have held off-farm jobs in the past. In general, there are more farmers with full-time off-farm occupations than with part-time jobs. There is evidence that the farmer population is ageing, especially in the relatively poorer Vines and Mountain Zones.

8.1.2: Land inheritance and succession

A major cause of the prevalence of part-time farming would seem to be the system of land inheritance. The single most important route into part-time farming was by receiving land from parents or as a dowry whilst fully employed in off-farm work. A majority of those receiving land in this way, continued in their non-agricultural occupations because the area inherited was too small to make a viable full-time holding. Most respondents propose to divide their present holdings equally among their children, which could lead to further sub-division and a new generation of part-time farmers.

8.1.3: Farm sizes

Generally speaking, full-time farmers operate a larger area of land than those with full-time alternative occupations. However, in the Dry- land, Vines and Mountain Zones and even in some survey villages in the Coastal Zone, the area operated by those with part-time off-farm occupations is larger than that of full-time farmers. Similar results are found for irrigated area per holding except that these areas are substantially higher in the Coastal Zone than elsewhere. As was remarked in the pilot study (Pearce, 1981), "It is interesting to note that part-time holdings at the most profitable end of the spectrum, i.e. in the Coastal Zone, are not only the smallest in relation to their full-time counterparts, but possess -92- a lower relative proportion of operated area under irrigation - exactly the opposite picture emerges from the Mountain Zone". This leads to the speculation that whereas in the poorer regions farm incomes, in general, are such as to make a second off-farm occupation attractive, in the Coastal Zone this is only so on particular holdings of inadequate size for full-time operation.

8.1.4: Farm structure

We can reject the hypothesis that part-time farming occurs on the more fragmented and inconvenient holdings. On the contrary, the full-time farms consist of more plots per holdings, have a bigger proportion of area farmed lying outside the village and rely to a much greater extent on renting-in of land. This last aspect suggests that many full-time farmers are forced to rent-in land, in order to create a holding of viable size.

8.1.5: Farming systems

The surveys provide evidence that farming systems are adapted to operator status. In general, full-time farms are operated more intensively than part-time ones, particularly in the Coastal Zone where there is more double cropping, and more investment in greenhouses and irrigation equipment on full-time farms. In all four Zones, a larger proportion of the land is under arable crops on full-time farms. Part-time farmers leave a larger proportion of their land uncropped and may tend to concentrate on permanent crops such as fruit trees and vines. These crops generally have a relatively low labour requirement over much of the year with one or two marked peaks at pruning and harvest time. Such seasonal agricultural activity may be integrated more conveniently with off-farm occupations than can arable farming. Livestock keeping, on the other hand, has a more nearly continuous labour requirement and possibly for this reason livestock are mainly concentrated on the full-time farms.

8.1.6: Capital investment and labour use

The amount of capital invested per holding is greatest on full-time farms but may be higher per donum on part-time farms. Thus there is some evidence that part-time farmers invest more heavily in mechanised equipment as a substitute for labour. However, whilst, as might be expected, the total labour input (in days per year) per holding declines with increased off-farm activity, there is no clear trend in the days worked per donum across all zones. In the Dryland Zone apparently more work is done per -93- donum by part-time farmers, while the opposite occurs in the Coastal and Vines Zones. There is no evidence to show that family (wives') or hired labour is substituted for the time given to off-farm work. On the contrary, wives work more days and, more labour is hired on full-time farms than on part-time holdings. However, this is associated with the larger size of full-time farms. Overall, intensity of production, as measured by labour inputs and capital investment per donum, does not vary consistently with the extent of off-farm activity in all zones.

8.1.7: Relative productivity of part-time farming

As a rough guide to resource productivity in agriculture we may compare the farm income per unit of land, labour and capital, between full-time and part-time farmers. In practically all cases the return per unit of resources decreases with increased off-farm activity: productivity is highest on full-time farms. Of course these are very crude measures, which can only give limited guidance as to the effect of changes at the margin. Furthermore, prices of agricultural inputs and outputs include substantial grants and subsidies, so these results may be a poor guide to social costs and benefits. Nevertheless they do suggest that a transfer of resources from part-time to full-time farming, which would involve farm amalgamations and displacement of part-time holders, would increase agricultural value added. It is worth noting in this context that there are very large regional differences in these productivity measures. Farm income per donum in the Coastal Zone is three or four times greater than in other Zones, while farm income per man-day in the Vines Zone is about half that in the Coastal and Dryland Zones.

8.1.8: Total work output of part-time farm families

Naturally the number of days spent on the farm per year by the operator diminishes with increasing commitment to off-farm occupations, but the total number of days worked increases substantially. Survey results suggest that the total work output (in days) of those with full-time off- farm occupations is more than twice that of full-time farmers. Even the over 65 year old group appear to work more days in total than do the full- time farmers. Furthermore, the wives and other family members of part- time farmers are more likely to undertake off-farm work than those of full- time farmers. These results may be interpreted as showing some underemployment, or disguised unemployment, on full-time farms which may be part by explained in part by the relatively small average farm size and in -94- the seasonal nature of farm work. Either farm amalgamation or an increase in off-farm activity may be expected to raise work output per man.

8.1.9: Incomes of part-time farmers

The total income from all sources appears higher for full-time farmers than for part-time operators in the Coastal and Dryland Zones. In the Vines Zone, however, part-time farm families earn higher total incomes, and full-time farmers earn considerably lower incomes than their fellows in other zones. These results would seem to support the earlier suggestion that whereas in the Vines Zone part-time farming is a response to overall low income generating potential of agriculture rather than an option for smaller farmers.

8.1.10: Income per man-day

As we have noted, income per man-day appears higher on full-time farms and in general agricultural income per man-day is somewhat higher than off- farm income per man-day. However, farm incomes include an implicit rent on owned land and an implicit return on equity capital. If these returns to other resources were excluded the return to farm labour would probably be comparable to off-farm earnings. The daily earnings in off-farm work, particularly of those with full-time off-farm employment, are low by national standards. Thus the evidence supports the view that part-time farmers, or peasant workers, provide a cheap source of industrial labour. If they did not earn a supplementary income from the farm and were fully integrated into the urban work force they might need, and be able, to command a higher wage.

8.1.11: Off-farm occupations

A high proportion of off-farm occupations are found in agriculture, the construction industry and in wholesale retail trading. These are all sectors where there may be seasonal variation in the work load and labour productivity is often low. However, when these occupations are combined with farming, labour may be more fully employed. Most of those with part- time off-farm jobs are self-employed, whereas those in full-time employment are generally salaried or wage earners.

8.1.12: Educational qualifications

The majority of part-time farmers surveyed have no formal qualifications or training for their occupations. Generally the new generation of -95-

farmers' sons and daughters are better educated than their parents and about a third have formal qualifications for their occupations. Thus, the rising generation may be able to command higher incomes than their parents, but may be more heavily committed, in terms of training, to their off-farm occupations.

8.1.13: Residence and transport

Practically all full-time farmers and those with part-time off-farm jobs live in the village where they farm. Many of the latter group work locally in their second occupation, but some have to travel further afield, either by car or 'bus. A significant proportion of those with full-time off -farm occupations live in town and commute to the village to operate the farm. Given that many children are moving to town to find employment, yet may eventually inherit farm land, part-time farming may become increasingly urban-based and linked with full-time off-farm employment.

8.1.14: Urban-based farming

The survey results suggest that the urban-based part-time farmers generally operate a larger area and irrigate more land on average than other part-time farmers. A larger proportion have undergone further education and some belong to the professions Income data are not available for this group, but it is likely that, on average, their incomes exceed those of - other farmers, both full-time and part-time. Urban-based farmers maintain links between town and country and could provide sophisticated managerial and administrative skills in the villages. However, by definition,. their commitment to agriculture must be less than that of full-time farmers.

8.1.15: Attitudes to part-time farming

Most part-time farmers are anxious to continue farming and would prefer to be farming full-time given the necessary resources. Few would be willing to sell land which is seen as a valuable asset. Many farmers feel under a traditional obligation to cultivate their inherited land or derive personal satisfaction from doing so. Most hope to retire to the village, even those currently living in town. Since these attitudes are widespread, it seems likely that part-time farming will continue to be an important feature of Cypriot agriculture. -96-

8.1.16: Role in village society

It appears that part-time farmers are less well integrated in village society than their full-time neighbours. The proportion of farmers playing an active role as leaders of village society declines with increasing off- farm commitment, and is at a minimum among those living outside the village. At the same time, whereas full-time farmers usually turn to personal sources of information regarding their farming activity, those with full-time occupations rely to a much greater degree on mass media. Thus, the supposed advantages of part-time farming in maintaining a possibly more sophisticated and better informed population to maintain and lead rural society, may be limited.

8.2: Objectives of Government Policy

The objectives of Government policy as presented in the Fourth Emer- gency Economic Action Plan were discussed earlier in Chapter Three. A brief recapitulation is desirable as a framework for policy recommendations with regard to part-time farming. Objectives may be grouped under the broad headings of (i) efficiency and (ii) equity.

8.2.1: Efficiency objectives

One clear objective of agricultural policy is to increase efficiency of resource utilisation. Broadly speaking, this implies an increase in the total output or value added from the resources available in the agricultural sector. It might also imply the release of a certain amount of labour for employment in other sectors. Land productivity is to be increased through an expansion of irrigation, while both land and labour productivity will be, improved by land consolidation schemes. Crop production is planned to expand by 2.9 per cent and livestock production by 3.4 per cent per annum. Problems of marketing have been recognised, particularly for the main agricultural exports, but it is assumed that increased production will be absorbed without a drastic fall in prices. Certain products, particularly vine products and cereals, hence indirectly livestock production, are subsidised. Price support for vines products may lead to the creation of surpluses which are converted into grape spirit. Detailed price analysis would be needed to measure the real contribution to GNP of production of these commodities.

8.2.2: Equity objectives

Government policies are also clearly aimed at reducing income -97- disparities between sectors and regions of the economy and improving the welfare of those in less prosperous areas. There are two main considerations relevant to the present study. One is the objective of maintaining income parity between rural people and those employed in other sectors. This may be achieved in part by increasing resource productivity in agriculture whilst maintaining or improving farm prices. However, the rest of the economy is growing rapidly, and in order to maintain income parity agricultural output would need to grow at least as fast as GNP. Alterna- tively, movement of labour out of agriculture could also result in an increase in incomes for those remaining on the farm. Land consolidation policies and farm mechanisation are both likely to increase labour productivity by saving labour rather than by increasing yields. Some migration out of agriculture is probably inevitable if agricultural income parity is to be maintained. Subsidies are also used to support agricultural incomes, for social or equity reasons. This is probably the main justification for the subsidies on vine products. Clearly such support is limited by the Government budget and carries the dangers of distortion of production patterns and the creation of surpluses.

8.2.3: Regional policy

The other main equity objective is to maintain a balance of activities in different parts of the country through regional programmes. Although Cyprus is a small country with good communications there are clear regional disparities in prosperity and income levels. A crude distinction can be drawn between the Coastal and Dryland Zones on the one hand, where not only is agriculture more productive, but also where most manufacturing and service industries are located, and the Mountain and Vines Zones on the other hand which seem less favoured in both respects. In the latter regions there are risks of severe rural depopulation, which raises the cost per capita of providing rural services for those who remain, and may be considered undesirable for various social reasons. A major rural development project is located in Pitsilia Region of the Mountain Zone, and similar programmes may be extended to other less developed areas. The project is aimed at (i) increasing agricultural productivity, (ii) improving rural roads and services, such as health and education, and (iii) establishing rural industries to increase off-farm employment opportunities. -98-

8.3: The Contribution of Part-time Farming

8.3.1: Productive contribution

The evidence suggests that part-time farming is likely to have an inhibiting effect on the intensification of agriculture. The emphasis of current plans on the development of irrigated agriculture may encounter problems. If, however, irrigation could be combined with land consolidation so asto provide holdings with the capacity to generate an adequate level of household income, there appears no reluctance among farmers to operate on a full-time basis. Indeed, most farmers suggest they would prefer to do so.

Part-time farming will also affect the composition of production. It will tend to discourage the production of vegetable crops, all glasshouse crops, any crop grown under irrigation and most livestock systems. It will lead to a bigger increase in perennial tree crops than would otherwise be the case. If there are scale advantages to be earned, and this is likely to be the case where mechanisation can be profitably exploited, part-time farming slows up structural adjustment and so perpetuates high cost production.

Part-time farming does seem however to lead to an efficient use of labour. Total family labour inputs on part-time farms are greater than on full-time ones. The supply of labour to other sectors of the economy is mainly unskilled, low cost labour of the type which is expected to be scarce in the future. It should not however be regarded as a means by which female participation in the labour force is augmented. There is a greater input of wives' labour on full-time farms than on part-time ones. There are comparatively few examples of wives working off the farm.

The conclusion from all this may be that part-time farming leads to a reduction in land productivity but an increase in labour productivity. The attitude of policy makers towards the issues depends on how agriculture's role in the economic development of the island is perceived. This in turn will hinge on the growth prospects of other sectors. If increases in total agricultural output, particularly of export crops, are a high priority, then part-time farming will impede the attainment of that objective. If, on the other hand, other sectors are likely to take the lead in generating income and export earnings, and if labour shortages are likely to constrain the pace of their growth, then part-time farmers provide a useful source of labour, at the cost of some loss in agricultural production. -99-

8.3.2: Equity and regional balance

It is acknowledged that earnings in agriculture, both from employment and self-employment, tend to lag behind comparable rates in other sectors. It is clear from this study that part-time farming is a result of the low income earning potential from farming. In the Vines and Mountain Zones this is a result of general low farm incomes from holdings of the type found there, whereas in the Coastal and Dryland Zones it is a result of farm structure. In these latter areas it is then a self-perpetuating process. Reluctance to sell land and become entirely dependent on non-farm income forces the next generation of farmers to pluri-activity.

The overall effect of part-time farming on income distribution and the incidence of povery is complex. Whilst labour is scarce within the economy,part-time farming probably widens income differentials. It prevents the emergence of larger, more profitable farms, particularly in the Coastal and Dryland Zones, and it provides a pool of unskilled, unorganised labour, part of whose subsistence is already met from their farming activities. The effect may be to reduce non-agricultural wage rates. The labour market recently, however, has shown signs of over-supply. It is not clear at the moment whether this is as a result of a temporary downturn in the economy, or whether the post 1974 reconstruction boom is coming to an end, and Cyprus, like most other places, faces an unemployment problem. If this is the case, then the existence of an income source in agriculture will be an advantage for unskilled and untrained workers.

All the evidence of this study suggest that part-time farming will persist; maintained by attitudes towards inheritance, dowry and the Cypriots' wish to own land. The characteristics of the part-time farmer will change however. Improvements in education and training facilities, and the fact that most farmers' children are already embarked on full-time, non-farm jobs will increase the number of urban-based farmers, farming either for a hobby or out of a sense of obligation. The need to maximise income from farming may diminish as per capita incomes rise and the marginal choice between income and leisure moves in favour of the latter.

As part-time farming is not a transitory phase and as another equity objective is to maintain a regional balance, the contribution of part-time farming to regional development becomes important. Farming in the Vines and Mountain Zones is not, on the whole capable of generating income levels which are likely to keep pace with the growth of income elsewhere. If -100- rural de-population is to be avoided therefore opportunities must exist for earning non-farm income. On the other hand, the existence of part-time farming may constitute a life-line for those areas.

8.4: Policy Options

8.4.1: Special policies for part-time farmers

As was shown in the review of literature, some Governments (e.g. Federal Republic of Germany) operate policies which actively favour and encourage part-time farming, whilst others (e.g. Netherlands) may discriminate against part-time farmers.

From the point of view of promoting productive efficiency, the most appropriate policy is to treat part-time farmers like any others; that is not to discriminate either for or against. Where part-time farmers are operating in competition with full-time farmers, facing the same set of prices for both inputs and outputs, then market forces should lead to an efficient allocation of resources between full-time and part-time farmers. If part-time farming was significantly less efficient in terms of resource productivity, it might be expected to die out gradually. Alternatively, if it was more efficient, part-time farming would tend to expand.

This assumes, of course, that market forces operate in an unfettered way, as far as the transfer of agricultural resources from one farmer to another is concerned. This study has shown that there are rigidities in the system which might prevent such transfers. The most significant of these is the high value placed on land ownership, partly for economic reasons and partly as a result of a sense of obligation and family trust.

Our policy recommendation is not to discriminate either for or against part-time farmers, but to remove obstacles and rigidities where these can be identified as preventing smooth adjustments in the way in which resources are deployed.

From an equity point of view, we have noted that part-time farming may be a means of raising low incomes in depressed areas, or on very small farms. However, this provides a case for pursuing other policies such as rural development in depressed areas, farm income support, farm amalgamation and expansion of off-farm employment rather than specific policies to pro- mote part-time farming. -101-

Urban-based part-time farmers represent a special case in that although they still contribute to agricultural production, they are not fully integrated members of rural society. Insofar as one policy objective may be to retain a viable rural population, urban-based part-time farming . does not contribute to this end. Furthermore, many urban-based part-time farmers are from the professional classes and do not need a second income in the same way as many village-based part-time farmers.

This study suggests that the number of urban-based farmers will increase in the future. From the point of view of both equity and efficiency some more detailed study of this group is warranted.

Thus, our policy recommendation is to treat part-time farmers the same as full-time farmers and not to discriminate, either for or against.

8.4.2: Rural development in poorer regions

In terms of both agricultural resource productivity and family incomes, there are much wider differences between regions than there are between full-time and part-time farmers. Hence programmes for the development of poorer regions must have high priority. The Pitsilia rural development project in the Mountain Zone was planned with this objective, and now a similar project has been 'launched for the Vines Zone.

Such projects aim not only at improving the rural services and amenities, to raise the welfare of the population and make the area more attractive for continued residence, especially by the young, but also at increasing employment opportunities and resource productivity. Although improved facilities may be desired the continued viability of a rural population in these areas must depend upon increased employment opportunities and improved productivity.

In view of Government budgetary constraints, it is essential that such projects should be cost-effective. This may mean that efforts must be concentrated, for instance on the expansion of a few rural service centres. Some further depopulation and even abandonment of some villages. maybe more cost-effective than attempts to maintain the present population of these regions intact.

Other policies to be discussed below, namely provision of off-farm employment opportunities in rural areas, direct income support policies for farmers and farm structural reform may be important elements of particular rural development projects. -102-

8.4.3: Provision of off-farm employment in rural areas

Although there are obvious social and environmental costs involved in the spread of hotels and industries to hitherto unspoilt rural areas, a case can be made for further decentralisation of non-agricultural activity. In the more remote areas, part-time farmers travel considerable distances with long travelling times to their off-farm work. For instance, in Pit- silia it was found that more than 60 per cent of commuters cover a return distance of over 100 miles daily, travelling for around three hours. (Neocleous).

Clearly the social costs of this travel are substantial. If employment could be provided locally there would be substantial savings of these costs. Industrial and other enterprises would find a pool of relatively cheap labour. Other underemployed farmers who, at present, choose not to travel long distances in search of off-farm work, would take up part-time or even full-time jobs, if they were available locally. In social terms, the additional costs of transporting raw materials to the rural area and products back to town are likely to be less than the costs of labour commuting. The choice of industries for location in rural areas would, of course, be crucial. More processing of agricultural products from within the region might be possible. This would appear to be particularly true of vine products. Nonetheless, since firms do not have to meet all the travel costs of their employees, financial and other incentives may be needed to encourage businesses to establish in rural areas.

An expansion of tourism in the Mountain and Vines Zones may contribute to the 'development of these regions, and the provision of off-farm employment. These areas offer alternative tourist attractions from the beaches of the Coastal Zone. Apart from the important tourist centre at Platres, and one or two other large villages, the inland areas of Cyprus have not been developed for tourism, but wbuld seem to offer interesting and contrasting opportunities for tourist expansion - particularly in the Vines and MoUntain Zones. Government policy should be aimed at promoting this expansion.

8.4.4: Farm income support policies

As we have seen, part-time farming is prevalent in some areas as a result of small farm sizes and low farm incomes. One obvious policy option would be to provide some form of farm income support. There are at this. least four alternative ways of achieving -103-

1. Direct income support, through social security payments. This approach is unattractive for various reasons. Some form of means test would be needed and this might be difficult to administer. Furthermore it smacks too much of charity. It might encourage some non-viable small farmers to remain in business when it would be less costly for them to abandon their farms, or allow them to be amalgamated into larger units. However this problem arises with any form of income support. 2. Control of supply, for instance through tariffs or controls on imports. This approach is used for commodities like meat and cereals for which domestic supply is less than demand so some is imported. Thus it would not benefit the small producers of vine products and other exports. Clearly such a policy would raise consumer prices, which might create upward pressure on wages and raise prices for the tourist industry, thus making it less competitive. Overall this policy is not to be recommended.

3. Input subsidies. Clearly farm incomes can be raised by making inputs cheaper, for instance by offering input subsidies. In fact many agricultural inputs in Cyprus are effectively subsidised, for instance irrigation water and agricultural credit. Input subsidies may have the additional advantage of encouraging increased use of inputs and greater productive efficiency. They may, on the other hand, encourage excessive and wasteful use of the subsidised inputs. In some cases market competition may force down the product price when input costs are reduced so the benefit of the subsidy is passed on to consumers rather than helping the farmer. Finally, input subsidies are likely to help most the large prosperous farmer who uses most inputs.

4. Product price support. Similar arguments apply to product price support through subsidies or deficiency payments. In Cyprus, vine products and cereal prices are supported in this way. It is not always clear how the benefits of such price support are distributed. Consumers may receive some of the benefit in terms of reduced purchase prices. Alter- natively, unwanted surpluses may accumulate. Again, large-scale producers are likely to benefit more than their smaller scale neighbours. Although there are disadvantages with farm income support policies, they do have one big advantage of immediate impact. Policies of integrated rural development, off-farm employment creation and structural reform in agriculture take much longer to have an effect on farmers' incomes and welfare.

Although it is recognised that on equity grounds, price support for vines products and possibly cereals may be necessary at the present time, -104- there clearly are disadvantages and strict constraints on the level to which such support can be carried. We therefore recommend that further studies are needed to assess the impact and distribution of benefits from agricultural input subsidies and price support.

8.4.5: Farm structural improvement

One factor contributing to the prevalence of part-time farming in Cyprus is the relatively small average size of holding. This is apparently largely due to the system of inheritance which involves sharing of land amongst offspring. As the population growth has fallen to a very low rate further fragmentation may be limited but many farms are already too small to be viable.

Results of the ARI Survey suggest that average productivity of land, labour and capital is rather higher on the somewhat larger, full-time farms than on part-time ones. Thus, there are grounds for pursuing policies to encourage structural improvements and in particular the amalgamation of the smaller holdings to provide economically viable units. This would, most probably, be accompanied by increased labour movement out of agriculture, but as argued in the review of literature, this is an inevitable part of the process of economic development. However, as the surveys have shown, attachment to the land and traditions of land inheritance are very strong in Cypriot society. Large incentives may be needed to bring about changes in attitudes.

The Land Consolidation programme in Cyprus is bringing about substantial improvements in farm layout and reduced fragmentation in selected villages. However, it operates largely on a voluntary basis (villagers vote on whether they wish to have land consolidation in their village) and it has relatively little impact on the average size of holding. The land consolidation authority is able to raise the legal minimum size of fragment that can be passed on to inheritors or sold, but this only has a small impact.

Thus it is suggested that further policies are needed to encourage farm amalgamations. Possibly financial incentives might be offered to encourage farm amalgamations, especially among very small farmers and the aged. Furthermore, a land bank should be established to facilitate the sale and purchase of land especially to encourage the establishment of larger-sized holdings. -105-

It is possible that the pursuit of greater economic efficiency in agriculture could lead to the abandonment of some agricultural land. Although the accompanying rural depopulation may be considered socially undesirable, it should be recognised that abandonment of agricultural land is not necessarily a bad thing. In some areas the cost of doing so may be less than the cost of maintaining agricultural production.

8.4.6: Suggestions for further work

There are three main areas where, it is felt, more information is needed and further research is desirable.

1. Urban-based farmers. This group was excluded from the ARI Survey and relatively few were included in the Reading-Cyprus Survey. Thus any findings reported in this study are necessarily tentative. More information is needed on the agricultural productivity, relative income levels and contribution to rural life of this important group which may well increase in future.

2. Farm finance and credit flows. Further study is needed of sources of farm finance and the use of credit. Of particular interest is whether part-time farmers really do invest more heavily in labour- saving devices, whether they have access to alternative sources of credit from full-time farmers, and how finance is allocated between on- and off-farm activities.

3. Social costs and benefits of agricultural subsidies. As suggested above, it is important to assess the relative costs and benefits - in social terms of agricultural input and price support subsidies. The distribution of costs and benefits as between large and small' farmers and between producers and consumers is also important'. Table A.1: AGRICULTURAL GROWTH, 1974-1981

PERCENTAGE INCREASE OVER PREVIOUS YEAR OF THE AGRICULTURAL SECTOR (MAJOR CATEGORIES)

(At Current Prices) (At Constant prices of 1973)

1974 1975 1976 1977 1978 1979 1980 1981 1974 1975 1976 1977 1978 1979 1980 1981

Gross Output: I. Crop & L'stock prods. 10.9 48.4 31.9 9.9 1.8 17.2 11.6 13.0 1.9 -24.1 11.1 3.3 2.4 5.9 2.8 1.8 1. Crops 30.7 =16.0 38.4 9.0 ,4.2 19.4 12.2 10.0 22.1 -21.2 9.4 1.5 -2.5 7.2 3.8 4.9 2. Animal pds.41.8 -22.5 20.0 11.7 14.0 13.4 10.5 18.6 -21.2 -29.3 14.2 6.6 11.1 4.0 1.3 8.2 II.Ancillary prods(Raisins, Zivania, Halloumi) 42.5 43.9 1.8 10.4 6.7 34.9 31.5 27.4 -21.6 -20.0 6.4 6.4 -3.8 16.6 8.7 8.8 TOTAL AGRIC. PRODUCTION 12.6 -15.7 33.4 9.3 -0.7 19.3 13.9 14.0 2.3 -22.5 14.5 3.1 -1.9 7.3 4.1 2.3 CURRENT OPER.EXPS.. Feeding stf. 0.9 -6.7 31.7 21.3 0.4 18.6 9.1 14.7 -15.3 -18.8 28.0 11.9 2.0 12.4 5.0 7.0 Ferts.(chem) =14.3 24.5 17.2 =14.9 38.4 0.9 23.0 -47.5 -4.6 32.9 4.3 -20.3 27.6 -18.4 7.9 Mch.reps. & maint. -26.3 -0.8 7.9 15.2 8.5 41.4 41.9 26.7 -36.5 -19.7 3.9 6.1 -8.4 16.1 5.3 3.9 Anc.prod. =16.5 =13.3 65.1 4.4 -0.8 33.4 26.1 24.0 -21.4 -22.2 30.9 -0.6 -0.1 13.4 8.5 8.4 Seeds 22.4 -22.9 46.3 -7.6 -21.5 29.4 25.7 13.0 -0.5 -38.6 10.0 9.2 -26.5 12.9 7.0 5.0 TOTAL CURR. OPER.EXPS. -7.4 -8.3 37.8 15.5 -1.5 25.2 15.1 19.3 -24.5 -21.1 29.7 8.4 -3.7 14.8 2.6 7.3 GROSS PROD. OF AGRIC. VALUE ADDED 23.1 -20.2 32.7 5.4 -0.5 17.0 13.0 10.3 17.4 -23.1 8.3 0.3 -1.1 5.2 5.0 -0.6 - 107 -

TABLE A.2: TOTAL CROP PRODUCTION 1981

Producers'Price Value of Crop Area Production per per Production (donums) (tons) oke ton at Producer's mils) (E) Price (E)

FIELD CROPS: . 1. Cereals 367,400 8,188,200 Wheat 65,000 10,500 135 108.0 1.134.000 Barley 300,000 75,000 116 92.8 6,960,000 Oats 2,400 285 150 120.0 34,200 2. Legumes 17,100 1,018,700 B'beans fresh) 1,100 165 132.0 145,200 B'beans dry ) 10,000 1,800 240 192.0 345,600 C'peas fresh) 1,100 325 260.0 286,000 C'peas dry ) 3,000 230 750 600.0 138,000 Chickpeas 2,700 250 245 196.0 49,000 Lentils 1,100 125 450 360.0 45,000 Louvana 300 45 275 220.0 9,900 3. indus.crops 6,500 807,968 Tobacco 2,480 345 1,068 854.4 294,768 Cotton 70 10 450 368.0 3,600 Sesame 750 30 650 520.0 15,600 Groundnuts 3,200 950 650 520.0 494,000 4. fl-RT gSEL 250 ...... 1,392,000 5. Fodder Crops 180,250 3,400,488 Vicos 14,000 1,730 157 125.6 217,288 Vetches 600 70 175 140.0 9,800 Favetta 650 50 160 128.0 6,400 Green fodder 165,000 ...... 3,167,000

Total Field Crop Production 571,500 14,747,356

VEGETABLES: 1. Potatoes 58,000 172,000 109 87.2 14,998,400 2. Other Vegetables 33,340 13,535,850 Carrots 1,600 8,200 127 101.6 883,920 Tomatoes 5,300 20,000 190 152.0 3,040,000 Colocase 750 2,200 395 316.0 695,200 Cucumbers 3,250 10,400 200 160.0 1,664,000 Water Melons 5,500 20,000 75 62.0 1,200,000 S. Melons 2,000 5,000 150 120.0 600,000 H.beans fresh) 4,500 2,100 289 231.2 485,520 H.beans dry ) 475 572 457.6 217,360 Cabbages 1,000 3,500 150 120.0 420,000 Onions 1,000 1,800 282 225.6 406,080 Onion sets 50 40 1,100 880.0 35,200 Onions fresh 300 1,600 60.0 96,000 (1000 bundles) ....continued - 108 -

Table A. 2 (continued)

Producers'Price Value of Crop Area Production per per Production (donums) (tons) oke ton at Producers' (mils) (E) Price (E)

Artichokes 1,100 2,600 176 140.8 366,080 Cauliflower 700 1,600 175 140.0 224,000 Marrows 1,000 3,200 180 144.0 460,800 Egg-plants 450 1,950 190 152.0 296,400 Beetroots 1,200 2,800 132 105.6 295,680 Celery (1000 bundles) 300 1,950 95.0 185,250 Okhra 600 1,100 385 308.0 338.800 Pepper 280 850 297 237.6 201,960 Peas fresh 700 850 220 176.0 149,600

Green salad items 1,900 000 000 000 1,274,000

Total Vegetable Production 91,480 28,534,250

FRUITS & TREE CROPS: 15,086,400 10 Wine grapes 233,000 182,000 81 64.8 11,793,600 Table grapes 22,000 28,000 147 117.6 3,292,800 2. Citrus 40,200 8,268,140 Oranges 13,200 40,000 93 74.6 2,984,000 Lemons 12,500 20,700 122 97.4 2,016,180 Grapefruit 10,200 50,800 62 49.2 2,499,260 Mandarines 2,600 3,000 320 256.2 768,600 Bitter oranges 1,700 3. Fresh Fruits 29,100 4,659,200 Apples 11,800 7,500 240 192.0 1,440,000 Pears 4,500 1,750 255 204.0 357,000 Quinces 180 150 235 188.0 28,200 Peaches 1,750 1,350 345 276.0 372,600 Apricots & Kaisha 1,750 550 425 340.0 187,000 Cherries 3,000 1,000 510 408.0 408,000 Plums 1,650 1,300 245 196.0 254,800 Pomegranates 400 300 160 128.0 38,400 Strawberries 120 300 765 612.0 183,600 Figs 650 1,250 310 248.0 310,000 Bananas 3,000 5,000 245 196.0 980,000 Loquats 300 300 ,325 260.0 78,000 Avocado 550 60 450 360.0 21,600 4. Nuts 42,650 1,328,800 Almonds 41,000 3,300 250 200.0 660,000 Walnuts 650 180 2,750 2,200.0 396,000 Hazelnuts 1,000 310 1,100 880.0 272,800 continued - 109 -

Table A.2 (continued)

Producers'Price Value of Crop Area Production per per Production (donums) (tons) oke ton at Producers' (mils) (E) Prices (E)

5. Other Tree Crops. 103,500 5,940,300 Olives 43,500 10,500 550 440.0 4,620,000 Carobs 60,000 27,000 61 48.9 1,320,300

Total Tree Crop Production 470,450 35,282,840

CROP BY PRODUCTS 1. Straw: a) Wheat & Barley 81,000 18.8 1,360,800 b) Legume 4,500 56.0 252,000

Total Crop by Production 1,612,800

TOTAL CROP PRODUCTION 1,133,430 80,177,246

•• • = Not available or inapplicable. - 110 -

Table A.3: Livestock Production 1981

Value of Animals Producers' Production Product Slaughtered Quantity Price at Producers' (No.) (tons) (g/ton) Prices(E)

A. MEAT Cattle 6,900 2,000 1,300 2,600,000 Mutton 20,500 564 960 541,440 Lamb 170,000 2,550 1,880 4,794,000 Goats 19,000 500 960 480,000 Kids 135,000 1,688 1,880 3,173,440 Pigs 230,000 17,250 520 8,970,000 Poultry 10,100 642 6,484,200 Pidgeons ...... 250,000 Rabbits ...... 610,000 Quails ...... 725,000

TOTAL MEAT PRODUCTION 28,628,080

B. LIVESTOCK PRODUCTS MILK: Cows 37,700 96.7 3,645.590 Sheep 16,900 240.0 4,056,000 Goats 21,000 140.0 2,940,000

TOTAL MILK 75,000 10,641,590

EGGS aman 9,900,000 0.315 3,118,500

OTHER LIVESTOCK PRODUCTS Wool 411 360 147,960 Honey 520 1,640 852,800 Manure ...... 765,000 Hides and skins ...... 490,000

TOTAL LIVESTOCK PRODUCTION 44,643,930 Table A.4: Changes in Animal Numbers, 1973-1981 (1,000's)

Type of Animal 1973 1974 1975 1976 1977 1978 1979 1980 1981

Cattle 33.0 15.5 14.7 17.1 18.7 20.1 22.3 24.4 27.2 Sheep and Lambs 430.0 210.0 225.0 255.0 280.0 275.0 295.0 300.0 310.0 Goats and Kids 340.0 200.0 210.0 230.0 240.0 233.0 220.0 223.0 228.0 Pigs 163.0 114.0 121.0 141.0 179.3 164.0 148.0 173.4 186.0 Poultry 3,100 1,650 1,900 2,100 2,000 2,000 2,200 2,200 2,200 - 112 -

APPENDIX B: METHOD OF RAISING SAMPLE STATISTICS TO GIVE AGGREGATE ESTIMATES

The sampling frame is derived from the 1977 Agricultural Census which gives frequencies (numbers of holdings) in each of 15 size groups for each of the 24 agro-ecological regions (Table 11, page 47, Volume I, Census of Agriculture, 1977). The grand total number of holdings recorded was 41,368. Of these a stratified randam sample of about 2,000 holdings is recorded in the annual Agricultural Statistical Survey.

In order to raise the results for the 1981 and 1982 statistical surveys a simplified procedure was used in that regions were grouped into the four main agro-ecological zones and the number of size groups was reduced to nine; namely:-

(i) 0-5 donums, (ii) 5-10 donums, (iii) 10-20 donums, (iv) 20-40 donums, (v) 40-60 donums, (vi) 60-80 donums, (vii) 80-100 donums, (viii) 100-150 donums, (ix) over 150 donums.

In each zone and for each of the three categories, full-time farmers, those with less than 9 months of off-farm employment and those with 9 months or more off-farm employment (i = 1 to 3) the overall relative proportion of farmers in that category was calculated as follows:

n. fij .3 f. j=1 where f.. = sample frequency in that size group and category 13 f. = sample frequency for all categories in that size group n3. = population frequency in that size group N3 = total population for the zone.

For mean farm size, irrigated area etc. the formula is as follows:-

= 1

where x = overall mean for that category of farmers - i -x. = sample mean for that size group and category - 113 -

APPENDIC C: AREAS OF LAND OWNED AND CULTIVATED PER HOLDING (Donums)

Coastal Dryland Vines Zone Zone Zone

Owned land: A. Full-time farmers 37 70 56 B. Part-time off-farm 33 66 72 C. Full-time off-farm 25 37 37 D. Over 65 years 30 45 22

Cultivated land: A. Full-time farmers 44 190 46 B. Part-time off-farm 25 60 36 C. Full-time off-farm 21 31 29 D. Over 65 years 22 26 17

(Source ARI Survey) - 114 -

APPENDIX D: COMPARISONS BETWEEN FULL-TIME AND PART-TIME FARMING Agricultural Statistical Survey, 1982

Coastal Dryland Vines Mountain Zone Zone Zone Zone

1. Proportion of holding under annual crops A. Full-time farms 64 52 13 11 B. Part-time off-farm 61 42 8 4 C. Full-time off-farm 43 40 9 6 (***) (**) (NS) (*)

2. Proportion of holding uncropped A. Full-time farms 17 25 32 45 B. Part-time off-farm 16 28 30 41 C. Full-time off-farm 24 34 27 43 (*) (**) (NS) (NS)

3. Family labour input, months per donum A. Full-time farms .33 .30 .31 .40 B. Part-time offfarm .56 .20 .42 .47 C. Full-time off-farm .34 .16 .26 .48 (*) (NS) (*) (NS)

4. Casual labour hired (days) A. Full-time farms 69 34 20 14 B. Part-time off-farm 32 22 26 29 C. Full-time off-farm 29 11 22.5 7 (**) (*) (NS) (NS)

5. Livestock labour months A. Full-time farms 3.9 4.1 2.4 1.1 B. Part-time off-farm 1.5 2.5 1.4 0.1 C. Full-time off-farm 0.6 0.4 0.5 0.3 (***) (***) (**) (*)

Differences significant at 0.1% level Differences significant at 1% level Differences significant at 5% level. Differences not significant - 115 -

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1. September, Contrasting Policies in Irrigation Development: 1966 Sudan and India D. S. Thornton

•••• July, The Marketing of Groundnuts in the Sudan 1967 E. M. Low

3. December, Agriculture in South-West Nigeria 1967 N. Upton

4. Deoember, Agricultural Credit in Botswana 1967 A. Harrison

May, Irrigation in Botswana 1969 M. Upton

6. May, The Economics of Irrigation Development - 1969 A Symposium S. G. Sandford, R. F. Wynn, D. S. Thornton

7, February, Agricultural Extension in Botswana 1970 B. G. Lever

3. January, Cattle Marketing in Botswana 1971 D. J. Ansell

9, June, Policies and Institutions in Ghanian Agriculture 1971 H. Mettrick

10, November, Limes in Montserrat 1971 M. Upton

11. October, Farm Power in West Pakistan 1972 C. E. Finney

12. June, Agriculture in South-East Ghana, Volume I, 1973 Summary Report D. S. Thornton

13, June, Agriculture in South-East Ghana, Volume II, 1973 Special Studies G. E. Dalton & R. N. Parker

14. December, Planntng Agriculture in Low Income Countries - 1974 A Symposium M. P. Collinson, C. E. Finney, A. R. C. Low, P. Zuckerman, H. Casey, M. Upton 15. December, Production and Marketing of Tea in Malawi, 1974 R. W. Palmer—Jones

16. July, Farm Surveys in Malawi 1975 J. Farrington

17. July, Small Scale Water Storage and Irrigation 1979 A. Ansell & M. Upton

18. March, Group Farming in North West Nigeria 1981 A. Dickie

19. September, Farm Power in Bangladesh, Volume 1 1981 G. J. Gill

20. September, Farm Power in Bangladesh, Volume 2 1981 H. Mettrick & D. P. James

21. 1981 Part—time Farming in Cyprus: A Pilot Study Richard Pearce

22, 1982 Farm Power In Sri Lanka J. Farrington & F. kbeyratne

23. May, Farm — Household Theory and Rural Development in 1982 Swaziland Allan Low

24. 1962 The Study of Rural Development: Changing Perspective D. S. Thornton

25. 1983 Small Farm Capital in Sri Lanka: The Case of Draught Power J. Farrington

* now out of print k

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