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THIS DOCUMENT IS T H E P R O P E R T Y OF H I S BRITANNIC M A J E S T Y ' S
Printed
for the
War Cabinet.
September
GOVERNMENT
1943.
S E C R E T .
Copy No.
W . P . (43) 422.
28th September,
1943.
V
WAR
CABINET.
POST-WAR AGRICULTURAL
MEMORANDUM
OF
STATE
BY THE MINISTER OF AGRICULTURE
FOR
SCOTLAND,
AND
THE
POLICY.
AND FISHERIES,
SECRETARY
OF
STATE
THE
FOR
SECRETARY
THE
HOME
DEPARTMENT.
W E have reviewed t h e problems of p e r m a n e n t p o s t - w a r a g r i c u l t u r a l policy
in the light of the discussion and conclusions of t h e W a r C a b i n e t on the 15th A p r i l
[ W a r C a b i n e t 55 (43) j a n d also of the r e c o m m e n d a t i o n s of the Conference a t
Hot S p r i n g s which have subsequently been accepted by H i s M a j e s t y ' s Govern­
ment. I n the p r e s e n t M e m o r a n d u m we p u t f o r w a r d a r e - s t a t e m e n t of the
principles of a p e r m a n e n t p o s t - w a r policy for a p p r o v a l by the W a r C a b i n e t
taking into account the p r e v i o u s discussion a n d s u g g e s t a different m e t h o d of
approach to t h e i n d u s t r y .
2. W e suggest t h a t t h e reasons for " m a i n t a i n i n g a f t e r t h e w a r a h e a l t h y
and well-balanced a g r i c u l t u r e as an essential a n d p e r m a n e n t f e a t u r e of n a t i o n a l
policy " m a y be s u m m a r i s e d as follows :—
(a) A g r i c u l t u r e p r o v i d e s for t h e most f u n d a m e n t a l h u m a n needs, viz.. food.*
T h e s e c u r i n g of a d e q u a t e food s u p p l i e s in peace a n d w a r m u s t be a
p r i m e objective of n a t i o n a l policy. F o r s e c u r i n g a n a d e q u a t e d i e t for
t h e n a t i o n it is necessary for domestic a g r i c u l t u r e to p r o d u c e first all
of those essential foods w h i c h because of p e r i s h a b i l i t y or o t h e r reasons
cannot be i m p o r t e d from abroad, e.g.. milk a n d fresh vegetables, a n d
also a p r o p o r t i o n of our needs for o t h e r essential foods such as m e a t
a n d cereals, a n d to do so u n d e r systems of h u s b a n d r y w h i c h will enable
p r o d u c t i o n to be c o n t i n u e d at the necessary level in t i m e of p e a c e a n d
to be r a p i d l y e x p a n d e d i n t i m e of w a r or a n y other emergency. A s
a n essential i n d u s t r y t h e level a t w h i c h our a g r i c u l t u r e should be
m a i n t a i n e d is, it is suggested, a m a t t e r to be d e t e r m i n e d n o t by
economic loisser faire but as a p a r t of d e l i b e r a t e n a t i o n a l policy, j u s t
as presumably w e shall feel it necessary to m a i n t a i n v i t a l i n d u s t r i e s
like e n g i n e e r i n g , s h i p b u i l d i n g , s h i p p i n g a n d steel from f a l l i n g i n t o
decay.
(b) A g r i c u l t u r e is still our l a r g e s t i n d u s t r y . A million a n d a q u a r t e r people
(some 400,000 f a r m e r s a n d small h o l d e r s a n d over 800,000 w a g e
e a r n e r s ) a r e directly e n g a g e d in it. I n a d d i t i o n , l a r g e n u m b e r s of
people a r e e n g a g e d in a n c i l l a r y i n d u s t r i e s a n d o c c u p a t i o n s a n d in
t r a n s p o r t i n g , processing a n d d i s t r i b u t i n g home a g r i c u l t u r a l p r o d u c t s .
I t is t h e r e f o r e i m p o r t a n t t h a t a g r i c u l t u r e should be m a i n t a i n e d from
t h e p o i n t of view of employment, a n d i t h a s t h e a d v a n t a g e s t h a t i t can
p r o v i d e s t e a d y e m p l o y m e n t u p to old age, a n d e m p l o y m e n t w h i c h is
n o t liable to t h e severe t e m p o r a r y dislocations t h a t so f r e q u e n t l y
occur in i n d u s t r i e s s u p p l y i n g less essential a n d p e r m a n e n t needs.
* A g r i c u l t u r e h a s , of c o u r s e , also t o provide c l o t h i n g a n d m a n y o t h e r r e q u i r e m e n t s ,
f-9-, wool, flax, c o t t o n , h i d e s , t o b a c c o , r u b b e r , v e g e t a b l e oils. At o n e t i m e wool a n d , before t h e
invention of t h e i n t e r n a l c o m b u s t i o n e n g i n e , h o r s e s w e r e i m p o r t a n t i t e m s in B r i t i s h a g r i c u l t u r a l
production. T h e p r i m a r y o b j e c t of a g r i c u l t u r e is, h o w e v e r , t h e p r o d u c t i o n of food.
British
a g r i c u l t u r e is t o - d a y p r e d o m i n a n t l y d e v o t e d to food p r o d u c t i o n , a n d t h i s c a n be t a k e n a s i t s
m a m objective and t h e j u s t i f i c a t i o n for m a i n t a i n i n g it as a n e s s e n t i a l i n d u s t r y .
[26151]
(c) A l t h o u g h a g r i c u l t u r e in t h i s c o u n t r y h a s been a d e c l i n i n g industry for
the p a s t 70 years except d u r i n g w a r s , it still r e m a i n s a n important
element in the n a t i o n a l life. I t is still c a r r i e d on over the whole
c o u n t r y s i d e . T h e farms are t h e r e ; the people a r e there with their
homes,' villages, churches, &c. On social g r o u n d s it would appear
u n d e s i r a b l e to reduce still f u r t h e r t h i s r u r a l a n d a g r i c u l t u r a l element
in our n a t i o n a l life which is a l r e a d y far more i n d u s t r i a l i s e d ami
u r b a n i s e d than t h a t of any o t h e r c o u n t r y , or to allow l a r g e areas of
r u r a l E n g l a n d , Scotland and W a l e s to become " depressed a r e a s "
w i t h the land r e v e r t i n g to send), t h e f a r m b u i l d i n g s a n d villages
f a l l i n g into decay and the r e m a i n i n g p o p u l a t i o n forced to leave the
land.
(d) T h e political and economic c i r c u m s t a n c e s which between 1870 and 1914
led t h i s country to feel t h a t it was safe and p r a c t i c a b l e and
a d v a n t a g e o u s to allow our domestic' a g r i c u l t u r e to decline without
a n y bottom limit and to rely to an e v e r - i n c r e a s i n g degree on imports of
food, were very e x c e p t i o n a l . L e a v i n g a s i d e defence c o n s i d e r a t i o n s and
looking only to our position in time of peace we no longer have and
cannot expect to recover t h e complete i n d u s t r i a l , commercial and
s h i p p i n g p r e d o m i n a n c e which we enjoyed in t h e 19th c e n t u r y .
3. I n so far as t h e r e c o m m e n d a t i o n s of the Conference at H o t S p r i n g s are
realised and peoples with a low s t a n d a r d of l i v i n g a r e able to increase their
c o n s u m p t i o n of food and the c o u n t r i e s of c o n t i n e n t a l E u r o p e a b a n d o n the policy
of e x t r e m e a g r a r i a n protection, t h e r e will be g r e a t e r c o m p e t i t i o n for exportable
s u r p l u s e s of food and this c o u n t r y is unlikely to be able to obtain food from
abroad to t h e e x t e n t a n d at t h e very low cost to which we have been accustomed.
4. W e have lost, too, a large p a r t of our foreign investments and are no
longer a c r e d i t o r n a t i o n able to count on receiving food from the rest of the world
as interest on our i n v e s t m e n t s . W e shall t h u s in f u t u r e only be able to import
food a n d r a w m a t e r i a l s to the e x t e n t t h a t we can export a n d we are faced with
the obvious d e t e r m i n a t i o n of other c o u n t r i e s to develop s e c o n d a r y i n d u s t r i e s for
the sake of n a t i o n a l security or a h i g h e r s t a n d a r d of l i v i n g or a diversification
of t h e i r economic a n d social life.
T h e T r e a s u r y M e m o r a n d u m on External
M o n e t a r y a n d Economic Policy [ R . P . (42) 2 ] e s t i m a t e d t h a t even on a n optimistic
view of t h e f u t u r e of our e x p o r t t r a d e it would be necessary to increase our
domestic a g r i c u l t u r a l p r o d u c t i o n to an e x t e n t which would enable us to reduce
o u r i m p o r t s of food c o m p a r e d w i t h p r e - w a r by s o m e t h i n g like £ 6 0 millions at
assumed p o s t - w a r p r i c e s in o r d e r to m a i n t a i n our b a l a n c e of p a y m e n t s .
5. T h e r e m a y be different views on the degree of e m p h a s i s to be placed
on the v a r i o u s f a c t o r s m e n t i o n e d above, but we suggest t h a t t a k e n t o g e t h e r they
lead to t h e conclusion t h a t it will be d e s i r a b l e a n d indeed necessary to produce
more food from o u r own soil t h a n we d i d before the w a r and to do so by systems
of f a r m i n g w h i c h will m a i n t a i n the f e r t i l i t y of t h e soil a n d keep something
like the present n u m b e r s of f a r m e r s a n d w o r k e r s employed on the land.* This
conclusion is in full accord w i t h t h e r e c o m m e n d a t i o n s for a w o r l d policy for food
a n d a g r i c u l t u r e m a d e at t h e H o t S p r i n g s Conference a n d a c c e p t e d by His
M a j e s t y ' s G o v e r n m e n t . I t would n o t involve a n y s u b s t a n t i a l c h a n g e in o u r genera!
n a t i o n a l economic policy. O u r i m p o r t s of food would still need to be on an
immense scale. W h a t we c o n t e m p l a t e is a c o m p a r a t i v e l y modest expansion of
domestic a g r i c u l t u r e c o m p a r e d w i t h p r e - w a r — a development w h i c h a p p e a r s liK ely
to be in a n y case necessary to m a i n t a i n our b a l a n c e of p a y m e n t s — t o be secured by
the p r o m o t i o n of b e t t e r balance a n d more efficient systems of f a r m i n g .
6. T h e first call on domestic a g r i c u l t u r e m u s t then clearly be to produce
those essential foods wffiich w e c a n n o t i m p o r t — l i q u i d milk, fresh vegetables and
soft f r u i t s — i n q u a n t i t i e s sufficient to meet n a t i o n a l n u t r i t i o n a l requirements.
I t m u s t also p r o d u c e a p r o p o r t i o n of the o t h e r p r o t e c t i v e foods (meat, eggs, dairy
p r o d u c t s , h a r d f r u i t s ) and of the energy foods [e.g., cereals) r e q u i r e d by t h e people.
T h e former c a t e g o r y a r e the " s h e l t e r e d " a n d t h e l a t t e r the " u n s h e l t e r e d "
b r a n c h e s of the i n d u s t r y . T h e y c a n n o t , however, be considered s e p a r a t e l y , nor,
indeed, can the p r o d u c t i o n of a n y single c o m m o d i t y be considered in isolation.
Because a g r i c u l t u r a l p r o d u c t i o n is governed by n a t u r a l laws a n d t h e seasons,
the p r o d u c t i o n of a n y p a r t i c u l a r food h a s n o r m a l l y to be c a r r i e d on as a
* T h e r e m a y be s o m e c h a n g e s in t h e c h a r a c t e r of a g r i c u l t u r a l e m p l o y m e n t w i t h o u t affecting
t o t a l n u m b e r s . I n s o m e a r e a s , e.g., p a r t s of S c o t l a n d , t h e r e m a y be a n i n c r e a s e in s m a l l holdings
a n d f a m i l y f a r m s . I n o t h e r a r e a s t h e r e m a y be a n e x t e n s i o n of t h e s y s t e m of k e e p i n g a pool of
m e n for g e n e r a l c o n t r a c t w o r k on f a r m s .
combination and sequence of o p e r a t i o n s p r o d u c i n g a n u m b e r of other foods. T h i s
was recognised in Resolution 15 of the H o t S p r i n g s Conference, w h i c h s t a t e d :—
" (a) T h a t the i n h e r e n t n a t u r a l a n d economic a d v a n t a g e s of any a r e a should
d e t e r m i n e t h e f a r m i n g systems a d o p t e d a n d the commodities produced
in t h a t a r e a ;
(b) T h a t f a r m i n g systems should be so designed a s —
(i) T o m a i n t a i n soil fertility at levels which will s u s t a i n yields ancl
e n s u r e a d e q u a t e r e t u r n for l a b o u r ;
(ii) T o protect crops a n d live-stock from m a j o r pests a n d diseases;
(iii) T o favour s t e a d y employment t h r o u g h o u t the y e a r ;
These t h r e e ends, in g e n e r a l a n d save in exceptional circum­
stances, can best be assured by balanced m i x e d r o t a t i o n a l f a r m i n g
and by avoidance of single-crop p r o d u c t i o n or m o n o c u l t u r e . "
7. T h e a m o u n t , therefore, t h a t we can p r o d u c e of the sheltered p r o d u c t s
and the p r o p o r t i o n t h a t we should p r o d u c e of the unsheltered p r o d u c t s will
mainly d e p e n d on a balance of economic a n d technical c o n s i d e r a t i o n s .
8. W e hope t h a t t h i s s t a t e m e n t of the position a n d objective in these general
terms can be accepted by the W a r Cabinet. W e recognise t h a t in p r e s e n t circum­
stances it is unnecessary a n d , indeed, i m p r a c t i c a b l e to ask for decisions as to
the m a i n t e n a n c e of a n y p a r t i c u l a r level of food p r o d u c t i o n in t h i s country, a n d
our previous M e m o r a n d u m only p u r p o r t e d to give a broad p i c t u r e of w h a t we
expected would be desirable. Both t h e level of p r o d u c t i o n a n d the methods by
which it m i g h t be m a i n t a i n e d must, we recognise, largely d e p e n d on i n t e r n a t i o n a l ,
economic ancl financial c o n d i t i o n s a s they emerge a f t e r the w a r . Moreover, for
some years a f t e r t h e end of h o s t i l i t i e s t h e r e will be a world s h o r t a g e of food. I n
the case of crops this s h o r t a g e m a y be overcome w i t h i n , say, 2 y e a r s .
In
the case of live-stock a n d live-stock p r o d u c t s (which a r e of chief significance for
home a g r i c u l t u r e ) the s h o r t a g e is likely to p e r s i s t for at least 5 y e a r s a n d possibly
longer. I t will be necessary probably for 2 y e a r s to c o n t i n u e t h e w a r - t i m e
character a n d scale of o u r a g r i c u l t u r a l p r o d u c t i o n a n d t h e r e a f t e r to c o n t i n u e to
expand live-stock p r o d u c t i o n in order to p r o v i d e a d e q u a t e food for our people.
D u r i n g these p e r i o d s if controls w e r e removed prices would rise to s c a r c i t y levels,
and the food subsidies will be r e q u i r e d not for the p u r p o s e of p r o t e c t i n g home
agriculture, but for k e e p i n g down the cost of l i v i n g u n d e r t h e G o v e r n m e n t s
stabilisation p l a n s .
9. On t h e o t h e r h a n d , as soon as h o s t i l i t i e s w i t h G e r m a n y cease, a number
of u r g e n t p r a c t i c a l problems will a r i s e w h i c h cannot be dealt w i t h unless a g r e e ­
ment is reached on the b r o a d p r i n c i p l e s t h a t should govern long-term a g r i c u l t u r a l
policy.
10. T h e first phase will be a p e r i o d ( i n c l u d i n g the " s h o r t - t e r m period "
envisaged by the H o t S p r i n g s Conference) d u r i n g w h i c h it will be necessary to
m a i n t a i n food p r o d u c t i o n of a w a r - t i m e c h a r a c t e r a n d scale.
11. T h e length of t h i s period will be d e t e r m i n e d by the course of the w a r
with J a p a n and the time t a k e n to re-establish a g r i c u l t u r e in d e v a s t a t e d c o u n t r i e s .
12. I t m a y last for at least several years, a n d d u r i n g t h a t t i m e it will be
necessary, if food p r o d u c t i o n is to be c o n t i n u e d a t . t h e r e q u i r e d level, to m a i n t a i n
something like t h e p r e s e n t a d m i n i s t r a t i v e m a c h i n e r y a n d powers. T h i s will
involve a s k i n g the 4,000 u n p a i d members of W a r A g r i c u l t u r a l E x e c u t i v e
Committees ancl t h e i r D i s t r i c t C o m m i t t e e s to c o n t i n u e to give a l a r g e p a r t of
their t i m e to the work of o r g a n i s i n g ancl s u p e r v i s i n g food p r o d u c t i o n . I t will
involve the m a i n t e n a n c e in some form or o t h e r of control over f a r m i n g o p e r a t i o n s .
13. D u r i n g t h i s period also it will be necessary for t h e G o v e r n m e n t a n d t h e
farmers to m a k e p r e p a r a t i o n s for the change-over from w a r - t i m e to peace-time
agriculture, such a s , for e x a m p l e , a r e d u c t i o n in w h e a t acreages a n d a n increase
m live-stock.
14. These results can only be achieved, a n d these p l a n s m a d e , a g a i n s t a
background of economic s t a b i l i t y , a n d w i t h a t least some w o r k i n g idea of w h a t
sort of f u t u r e is a i m e d a t .
15. T h e G o v e r n m e n t has promised to m a i n t a i n the e x i s t i n g s t r u c t u r e of
guaranteed m a r k e t s a n d p r i c e s for a least a y e a r a f t e r the end of h o s t i l i t i e s . T h i s
leaves the a c t u a l d a t e u n c e r t a i n . B u t these questions will u n d o u b t e d l y arise w i t h
great urgency as soon as h o s t i l i t i e s with Germany cease. Clearly we m u s t m a k e
P r e p a r a t i o n s w h i c h will e n s u r e t h a t food p r o d u c t i o n is m a i n t a i n e d at t h e levels
"esired by the G o v e r n m e n t d u r i n g the s h o r t - t e r m period of c o n t i n u e d stringency
into which we shall then e n t e r a n d the s u b s e q u e n t period of t r a n s i t i o n from
w a r - t i m e to peace-time c o n d i t i o n s .
Clearly, too, we c a n n o t discuss w i t h the
i n d u s t r y the t r a n s i t i o n from w a r - t i m e to p e a c e - t i m e a g r i c u l t u r e without
d i s c u s s i n g w h a t at any r a t e t h e p r i n c i p l e s of a g r i c u l t u r a l policy a r e to be a t the
end of t h e t r a n s i t i o n period. W e suggest t h a t w h i l e we need not a n d should not
decide now w h a t these levels of food p r o d u c t i o n should be, it is necessary to begin
at once to work out w i t h the i n d u s t r y the broad p r i n c i p l e s which should govern
t r a n s i t i o n a l a n d long-term policies. Two essential and c o m p l e m e n t a r y features
would seem to be (a) the c o n t i n u a n c e of some m e a s u r e of control., a n d (6) the
c o n t i n u a n c e of some system of g u a r a n t e e d m a r k e t s and prices.
l b . W e therefore recommend t h a t it should be a n n o u n c e d t h a t the War
C a b i n e t have a u t h o r i s e d us to e n t e r into d i s c u s s i o n s with the i n d u s t r y about the
general p r i n c i p l e s on w h i c h p o s t - w a r a g r i c u l t u r a l policy should be based, and to
report back to the W a r C a b i n e t the result of those discussions. T h i s would leave
the A g r i c u l t u r a l M i n i s t e r s a n d the W a r C a b i n e t q u i t e u n c o m m i t t e d .
17. T h e p r i n c i p l e s to be discussed would be : —
T h e a p p l i c a t i o n of t h e g e n e r a l p r i n c i p l e s of a g r i c u l t u r a l p r o d u c t i o n laid
down at H o t S p r i n g s to t h e c i r c u m s t a n c e s of t h i s c o u n t r y .
T h e methods by w h i c h g u a r a n t e e d m a r k e t s a n d p r i c e s m i g h t be secured
at w h a t e v e r level the G o v e r n m e n t , in t h e l i g h t of general international
economic a n d financial c o n d i t i o n s a f t e r the w a r . m i g h t u l t i m a t e l y decide it
w a s in t h e n a t i o n a l i n t e r e s t to m a i n t a i n p r o d u c t i o n .
T h e e x t e n t a n d m e t h o d s of public control over t h e use and management
of a g r i c u l t u r a l land a n d over s t a n d a r d s of f a r m i n g to e n s u r e efficiency.
T h e p r i n c i p l e s which should be a p p l i e d for r e o r g a n i s i n g and improving
a g r i c u l t u r a l e d u c a t i o n a l a n d a d v i s o r y services for the p r o m o t i o n of efficiency.
T h e p r i n c i p l e s which should govern t h e m a r k e t i n g of home agricultural
p r o d u c e — i n c l u d i n g i m p r o v e m e n t of q u a l i t y , g r a d i n g , s t a n d a r d i s a t i o n .
and the sale and s l a u g h t e r i n g of livestock; a n d the m a c h i n e r y for regulating
such m a r k e t i n g .
18. T h e discussions w i t h the i n d u s t r y on these m a t t e r s could be kept
confidential. A s i n d i c a t e d above, they would be of a n e x p l o r a t o r y c h a r a c t e r , and
the W a r C a b i n e t would be in no w a y c o m m i t t e d to a n v level of home production
or to a n y p a r t i c u l a r method or d e g r e e of a s s i s t a n c e . Such discussions would,
however, serve the p u r p o s e of s a t i s f y i n g t h e i n d u s t r y t h a t the G o v e r n m e n t was
t a k i n g action to p r e p a r e a p e r m a n e n t p o s t - w a r a g r i c u l t u r a l policy; they would
help to secure t h e s u p p o r t of t h e i n d u s t r y for t h e m e a s u r e s necessary to deal with
the difficulties of t h e t r a n s i t i o n a l p e r i o d ; a n d t h e y would p r o v i d e a basis on which
decisions could be t a k e n about l o n g - t e r m policy w h e n it becomes necessary to do so.
19. T h e r e m a y be some a p p r e c i a t i o n of c a p i t a l land values a t t r i b u t a b l e in
p a r t to the G o v e r n m e n t s a g r i c u l t u r a l policy. T h i s is only p a r t of the more
general problem caused by c h a n g e s i n c a p i t a l values of all k i n d s w h i c h m a y result
from G o v e r n m e n t action. N o s a t i s f a c t o r y solution of t h i s problem h a s so far
been found, but we a r e carefully e x a m i n i n g the p o s s i b i l i t y of d e a l i n g with
s p e c u l a t i o n in a g r i c u l t u r a l l a n d or e x p l o i t a t i o n of c h a n g e s in its value resulting
from G o v e r n m e n t policy.
20. Northern
Ireland.
A C o m m i t t e e p r e s i d e d oved by L o r d J u s t i c e B a b b i n g t o n has been set u p by
the M i n i s t e r of A g r i c u l t u r e for N o r t h e r n I r e l a n d , to e n q u i r e into a n d report
u p o n the development a n d i m p r o v e m e n t of t h e A g r i c u l t u r a l I n d u s t r y . The
C o m m i t t e e ' s t e r m s of reference do not go beyond w h a t m a y be t e r m e d purely
N o r t h e r n I r e l a n d a g r i c u l t u r a l m a t t e r s such as livestock b r e e d i n g policy, transport
of a g r i c u l t u r a l produce, electrification of r u r a l a r e a s , r u r a l housing, agricultural
e d u c a t i o n , a n d internal m a r k e t i n g a r a n g e m e n t s , &c.
21. N o r t h e r n I r e l a n d is concerned, a s a c o n s t i t u t i o n a l p a r t of the United
K i n g d o m , w i t h the broader aspects of a g r i c u l t u r a l policy. I t is desirable, there­
fore, t h a t N o r t h e r n I r e l a n d should be a s s o c i a t e d w i t h a n y discussions with
B r i t i s h A g r i c u l t u r a l M i n i s t e r s w h i c h affect a g r i c u l t u r a l policy in the United
K i n g d o m as a whole.
(Initialled)
R. S. H.
T. J .
28//.' September,
1943.
H . M.