A Survey of Agriculture in Uruguay

Since the early 1950' s Uruguay's agriculture has stagnated because of unfavorable prices received for the major farm products, especially wool and beef, the leading exports. These prices reflect not only unfavorable world prices but also Uruguay's foreign exchange and export tax policies, aimed at skimming off profits from low-cost agriculture to support high-cost industries and social services, Uruguay's Agricultural Development Plan, 1965-74, proposed reforms to improve the position of agriculture, but not until 1968 was any serious effort made to carry out recommended adjustments of exchange rates and export taxes. Measures in effect or under consideration that are aimed at increasing the productivity of agriculture include expanded extension and research services, supervised farm credit, land reform, and price policies to provide an incentive for raising output. A pasture improvement program initiated in 1960 has already demonstrated the profitability of improved livestock management. If these measures are carried out and economic and political stability is attained, agricultural production and exports may increase substantially during the next few years. The relative increase will probably be greater for crops than for livestock products, but wool and beef will undoubtedly remain the principal sources of farm income and foreign exchange