Problems of agricultural policy in East Germany

The process of agricultural unification will dominate the German scene for the next few years. At this stage, however, analysis and forecasts are hampered by the considerable problem concerning the viability of East German agriculture in a market economy and by the absence of reliable data in the German Democratic Republic (GDR). This can only be understood in terms of the agricultural situation in the GDR before unification, which is discussed in the first section. The political and economic incentives for German unification are described in the next section of this paper, focusing especially on the integration of the GDR into CAP. The third section considers some critical structural, legal, social, and economic constraints in the process of integrating the two agricultural systems. Finally, the implications for German agriculture as well as the challenges for the CAP will be addressed. Data were collected from interviews with key agricultural policy makers, farm organizations, commodity groups, consumer groups, and agricultural experts, as well as interviewing East German farmers. Additional data were compiled from government statistics, EC publications, and press reports. The conclusions reached in this research show the urgent need for the German government to reconsider the objectives and rationale for structural policies in agriculture, and point out that the new Germany, itself full of paradoxes and uncertainty, stands at the center of European agricultural disorder. Copyright Kluwer Academic Publishers 1993