INFORMATION ON STATE FARMS IN CHINA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000700130612-6
• Release Decision: RIPPUB
• Original Classification: R
• Document Page Count: 4
• Document Creation Date: December 22, 2016
• Document Release Date: September 23, 2011
• Sequence Number: 612
• Publication Date: October 2, 1953
• Content Type: REPORT

Declassified in Part - Sanitized Copy Approved for Release 2012/02/08: CIA-RDP80-00809A000700130612-6 ?
s
CLASSIFICATION RESTRICTED
SECURITY INFORMATION
CENTRAL INTELLIGENCE AGENCY
INFORMATION FROM
FOREIGN DOCUMENTS OR RADIO BROADCASTS
REPORT
CD NO.
DATE OF
COUNTRY China
SUBJECT Economic - Agriculture, state farm
HOW
PUBLISHED Daily newspaper
WHERE
PUBLISHED Peiping
DATE
PUBLISHED 28 Jun 1953
LANGUAGE Chinese
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na~
SOURCE Jen-min Jih-Pao
DATE DIST. a Oct 1953
NO. OF PAGES 4
SUPPLEMENT TO
REPORT NO.
INFORMATION ON STATE FARMS IN CHINA
Jummary; For 3 years, the Shua.g-ch'iao State Farm has failed
to manage its capital and production properly and has operated with
losses. Now, after corrective measures, the farm is expected to op-
erate at a profit. Dairy herds and grazing facilities are to be
emphasized; lumbering and farming are to be developed.
The Lu-t'ai, Shiang-ch'iao, and Wu..11-tien State Farms are im-
proving their work efficiency by devising new production techniques
and reducing costs
DISCUSSES SHORTCOMIN^S OF SHUANO-+,?IAO STATE FARM -_ Peiping, den-min Jih-pao,
28 Jun 53
The Shuang-ch'iao State Farm was established. in 1949 and from 1950, follow-
ing tae introduction of mechanical plowing, production increased rapidly. How-
bver, in 1932, the farm was still operating at a loss of 92 million yuan. What
was the cause of this conditicu7
This farm took netLonal capital ant invested it blindly and impractically.
Up to the end of 1952, the state ',ad invested more than 9,300,000;000 yuan in
recpnst_uctinn. The capital was not need for investr;-nt to tce mos; important
phase -- the expansion and development of production. Moreover, +he raer o.
indi-ect costs (depreciation) was increased, thus hindering the pcsitivc ac-
cumulation and r,investment of capital. It is estimated that in the past 3'
Years (1950 try 1952), reconstruction depreciation totaled 600 million yuan; for
1953 it will be 500 million yuan, which is almost 20 percent of the farm's total
production costs for the year.
Building expenditures, an outstanding item in reconstruction costs, ac-
counted for 59.8 percent of the total reconstruction costs. From April to
December 1952, there were wide-spread building operations. 11ig sties, hatch-
eries, and 12 houses with an area of 2,372 square meters were built at a total
_ C14SSIFICATION R:25TRICTED
STATE ttA~'l st 5 j -r - GISTRi?UTI0P1 -r
Declassified in Part - Sanitized Copy Approved for Release 2012/02/08: CIA-RDP80-00809A000700130612-6
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/08: CIA-RDP80-00809A000700130612-6
cost of more than 2.5 billion yuan. The houses cost over one million Yuan per
square meter. The four new pig sties cost 860 million yuan and the income from
the sale of pigs was barely 107 mil'.ion yuan. A hothcr,;se, which was promptly
used as an office, was built at a cost of 370 million yuan. Many derisive re-
marks were made about this building without planning.
The output of the farm's agricultural fields and animal husbandry were
both on an unplanned cost basis. The objective was an increase of production
rather than the welfare of the people. There was too much capital invested in
fertilizer and labor, and too much expensive highly refined stock feed was used.
As a result, there was a real increase in production but there were still losses.
The farm managers had the false idea of "exchanging money for production," not
realizing the worth of research, improved plowing, and fodder control. Con-
sequently, waste and losses were very high,
last year, the farm planted 826 mou of cotton. To fulfill this not too
practical production increase plan (ordinary fields to yield 450 catties of
unginned cotton per mou and high-production fields to yield 1,000 catties), the
farm manager spread 280 million yuans worth of fertilizer (more than 96 percent
of which was commercial) and used the labor of more than 17,000 workers. The
cost per mou of cotton field amounted to 1,100,000 gran. Because too much high-
nitrogen-content fertilizer was used, the ripening of the cotton was delayed.
In addition, no precautionary measures were taken against natural calamities
and as a result there was damage frcm frost. The average yield of unginned
cotton was 259 cattiee per mPU; htgh?pro?iu=tlon fields yielded only 524 catties
per mou. In calculating the results, each catty of unginned cotton cost 4,582
yuan to produce and the market price of the cotton was only 2,800 yuan per
catty. In this one item of production, more then 240 million yuan has been
lost.
The one producti.nn item for which the Shuang-ch'iao State Farm fulfilled
the plan was chicken raising. Last year, more than 1,200 chickens were raised
and they yielded over 109,000 eggs. The average egg production per leghorn
hen increased from 185 to lA8 eggs. However, the price of feed is high. In
the first 6 months, wheat, corn, kaollang, barley, dried fish, bean cake, bran,
clam-shell meal, etc., were fed; In the latter half of the year the number of
types of feed used had lurreased to 14. Expendituu ea for feed were too high,
amounting to 80 percent of the total costs. As a result, the farm suffered a
lose of more than 60 million yuan on its chicken _raising.
The leading cadres of this farm ware not trained in the methods Of so-
cialist economic planning. They had no training in scientific purchasing or
selling. Some 7,000 cattiee of sugar beets, intenisd as food for milk cove,
spoiled by freezing because no one took the proper care of the sugar beets.
Some 8,000 rattles of wheat bran and 3,000 catties of ginned cotton could not
be accounted for. At the time the municipal m,.rks:te were selling eggs nt 800
Yuan each, the state farm wee selling its eggs at only 400 yuan each. When
grain companies were selling their feed at only 400 yuan per catty, the farm
was putting its feed on the market at. 800 yuan per catty. The damage rate to
farming equipment was also very high; the cutlxy for this item 1s very dif-
ficult to estimate.
Poring Fet.rusry, tl.a Shu:?ng.ch tau State Farm initiated a prcgrsa to com-
bat bureaucratiem. Alec at that time the "crkcra received practical training
and it raaa 3tre3r,' nst they themsrlvee wrre the manages+ra of tae farm. The
foundation was thus laid.for the revised economic management of this state
farm. From March to May, the cadres received training, financial planning was
discussed, and a profit of one billion yuan set as the goal.
" -41
i
Declassified in Part - Sanitized Copy Approved for Release 2012/02/08: CIA-RDP80-00809A000700130612-6
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/08: CIA-RDP80-00809A000700130612-6
First, it was decided that dairy produ,tiorr ant grazing were to be stressed,
and that the agricultural and lumber iri ustrise were to be developed. in con-
junction with each other. In agriculture, except for the 819 mou devoted to
cotton, wheat, etc., the fodder area was to be expanded by 3,600 more mou, thus
ensuring the provision of all types of fodder to meet the needs of the cattle.
This year's plowed area, as compared to last year's, has lncrea;ei more than
100 percent. In reconstruction, capital ul11.be concentrated on expanding
production. This will enable the total value of the fa-,m'? production to be
Increased to 3.6 billion yuan, an increase of arproximately 30 percent over last
year.
Second, from the workers' konwl.,? to of the signtficen-.e of the farm's pro-
duction, afeeling of coat cons.io,se: e bet' teen Production is ex-
pected to be high this year, but ecpe.nrlttutr9 Cr.: planned tc be loos than 2.5
billion yuan, a decrease of over 12 E.r:ent e= -r?mpared to last year.
At present. production hrl.ed_ a-e .r th> pry of revteing plans to
bring down costs. There are over l,OrX, aru.inte et,-iytng m.:-hariical methods of
agriculture. Manure is foci fertll!zr-r e d the farm has a n,Lmber of manure
piles, but in the pest the farm has natnly ;;ei cm ?r_ia! fertilizer. Now
efforts are being pads to ac,urvlat.e mar. rn nj-r_ ?ho: sal,irtg the capital in-
vested in commercial ferti lie.r.
Pig-raising >xperts have eto?i;-n, S.-?v:et -tutqu?-a .and have investl.gated
the prices of various type of fe=d. rh y ta?- t?.?e File,-k beans for
bean cake, ani. ou:. pout--i; for . ;, ti:, i. ka_i:aur in f-e?i:ng the pigs. This
will effect a saving of 7C toll::n y,, r: cn tn. r,,C, 0~ , at tie.; of f.,ed needed
for the pigs this year.
Proper orgnnizatlon ha:, t,s:.n arri,,7 -,ur oleo; a:th the revision of plans.
In accordance with the prar.tuei r.etc of th?- ,r,+: fora:, and tc; strengthen
management, a taenst~.rtai eff,,,e and a--.canting off.:- have b,'-n set up together
with farming and grazing brigade?, yang.,,-,.;;t T.:rcor:ntl ha= b>.n reduced from
32 persona to 24. Tnta year tn.- na'b.?r of milk -w, he; been increased from
126 head to 171 heat, t.h narrb?c? of pl.q= fr;.m -2t to m?r?= then 400 and the num-
ber of thickens from 1.200 t. r .. r r:n f:;, -,.,c,',.., of he-d.ers has been re-
duced from y5 to 3;.
Shuang-chino State Farr. :. r.r?: -v .. r1.,ktn? :, rrcfit, Within
the past 5 tnnnthe tie -L-'Ty b- n s.? ::,'; FF:-.=nc ?f this farm's
production, has alrenry 4,:?pss ..i :t- planr:r e ,.tp..?. i;e nr,g rt,1 plan called
for 147,380 kilogram: of milk, -_,rf.?, v:,., 2?,r ktl.^grattu),
At present, tb- state fart : :pail.^?i r?tr:r; ;c r??;gram to increase pro-
duction and reduce waste,, and ;i ..: s? .iyin_ 't,, t ._nie_~s of =Bern carping.
TRREE STATE FARMS 1MFF'Ov? EF"rr1:N' _ ,p,;g? n-m, lto? ^ a8 Jun 5.3
The three state farm} of L--,-f :, -,tens :ir t._, end. 'W 11 tlen, are now
engaged in: unman hoeing and eumce~r e: SNvi i :.,.:. Al! workers are de-
vienug rmthods of lmprovtr,g cork ~ff'., 1=rcy ann. pr.,;i.nr lion costs.
The La-t at State Farm planted i6,000 mo., of paidv r:ce this year. In the
past, grass vas removed by hand., anti .cnforrarr,_ t; pail iecbntque= it was
estimated that in 195;, 70,000 tear.-days of tempc?razv labor would b--required for
this operation, To improve work efii-i'n:y and to lover ,..o:?ts, the state farm
workers invented a manually op-ratei wee-'llydt tmplatrent, Previcuely, grass re-
moval required one half a workday per mot:, tut with rhr use c,f the we,.as:,
Declassified in Part - Sanitized Copy Approved for Release 2012/02/08: CIA-RDP80-00809A000700130612-6
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/08: CIA-RDP80-00809A000700130612-6
removing operation, 2,293 workdays
were Saved. The original plan for applications of ferti.lizez called for ferti-
lizing at the rate of 20 mou per man per day. The actual figure attained was
30-mon, thus saving a total of 284 workdays.
At the Wu-1l-tien State Farm the killing of cotton and corn is proceeding
on schedule. The efficiency rate has also improved considerably here. The
original plan was 2 mou per man, but now 2.5 m,u per man has been attained; the
highest figure attained was 3.3 mou, The billing of earn rose from 2 moo to
5.2 mou. The farm began grass removal on 1 :Y.ne and completion of the first
stage of mid-season plowing prior to 22 June is ensured.
The killing of cotton, corn, etc., on the Shuang.oh'i.eo State Farm has been
completed. Mid-season weeding has begun, and a-, the same time, oats and wheat
are ready to be harvested. To ensure the ha.-vesting, trying, and storage of
the oats on schedule, the farm has organized harvesting teams. Wheat will be
harvested beginning on 18 June.
each man can now average 2.74 mu per day. This i, an improvement of 100 per_
cent over last year. Hence, only 30,000 man-days of labor were required from
temporary workers. During the first as.
50X1-HUM ~
Declassified in Part - Sanitized Copy Approved for Release 2012/02/08: CIA-RDP80-00809A000700130612-6