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| Author: | A. Burger |
Abstract:
International comparison of prices reveals that producer prices in European socialist countries are generally lower than those in developed capitalist countries.
The productivity of completely mechanized grain production is relatively high, its costs are low, thus large scale co-operative and state farms are first of all in grain production interested.
Both productivity and level of mechanization are lower, however costs are higher at labor intensive production, as e.g. in horticulture.
Low prices combined with other feeble incentives and labor shortage are stimulating large farms to extend grain production and to shrink labor intensive production including horticultural one.
This trend is particularly expressive in Hungary, where central plan targets are not compulsory ones and where enterprises and farms are in profit interested.
In this country the rate of small farms horticultural and animal production is increasing.
However small farms, farming on 15 per cent of agricultural land area cannot fill the gap in labor intensive production long lasting.
For boosting large scale labor intensive production, including horticultural one, pricing, supporting and withdrawing systems have to be modified and several better incited small scale productional forms has to be organized even on large farms.
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