Present situation: background and key figures
The total agricultural area of metropolitan France is around 33 million hectares, i.e. 60% of the country, the remainder being divided between forest (15 million hectares) and non-agricultural land (7 million). This agricultural area has been slowly decreasing for many years, to the benefit of the other two uses. Some of this land is uncultivated: after some major clearance and drainage operations and return of land to cultivation which went on until the 1970s, the uncultivated area is now stable at about 3 million hectares. Utilized agricultural area (UAA) is therefore about 30 million hectares, i.e. 0.5 hectare per head of population, and about 23% of the total agricultural area of the fifteen EU States.
The greater part of this area (over 61%, compared with 55% in 1950) is arable land: the area still under grass is a little less than 35% of the total, against 38% in 1950; vineyards and orchards now account for only about 4% of it, or just over one million hectares, compared with 2 million in 1950, following moves to concentrate fruit-growing in highly-specialized farms and the grubbing-up of some of the vineyards producing ordinary wine, especially since 1980.
The areas planted to cereals (around 9 million hectares) and sugar beet (about 450,000 hectares) have been fairly stable for 40 years. The areas under oil seeds and protein crops have greatly increased, up from 250,000 hectares in 1960 to over 2.7 million today. The total area under arable crops has increased by more than 2.3 million hectares. By contrast, the area devoted to animal feed (areas still under grass and fodder crops) has been much reduced, falling in 40 years from 20 to 14.6 million hectares and accounting both for most of the decline in the total agricultural area and the expansion of arable crops. But this trend has not been uniform. There have been some highly complex moves towards regional specialization, with some regions turning their permanent grasslands into arable land, and others replacing their crops or some of their grassland with intensive fodder crops, particularly maize.
Farms
Their number has been in constant decline, at a rate fluctuating between 3% and over 5% per year, essentially depending on the number of the oldest farmers retiring, with that number itself influenced by European and national farm closure schemes (severance grants, early retirements, retirement at age 60). In 1997 there were about 680,000 agricultural holdings (compared with 1.6 million in 1970), 424,000 of them farmed full time.
Their average size is therefore now close to 42 hectares, i.e. more than twice the average for the fifteen EU countries. Of course this average covers some very different situations: about 70,000 farms, 11% of the total, are larger than 100 hectares and account for 43% of the total area. Conversely, 244,000 farms of under 10 hectares (many of them part time) account for only 3%.
Employment on these holdings is directly related to their size, and more specifically to the area available per worker. The bulk of French holdings used to be devoted to mixed cropping and stock farming, but the number of these has gradually declined, giving way to more specialized farms. While the largest can employ and pay their workforce by devoting themselves almost exclusively to arable crops, most medium-sized farms still concentrate on stock farming, particularly dairy farming and the intensive production of beef meat in fattening plants. The smallest farms specialize in products with a high gross yield per hectare: viticulture, market gardening, specialized animal production (pork or poultry).
Farmers and farm workers
The number of people employed in agriculture has declined with that of holdings, only faster. Fewer family members, other than the farmer and his wife, now work on the farm (there were only 24,000 in 1997). There has also been a sharp decline in the number of permanent farm workers, although this is partly offset by the use of casual labour. Finally, fewer and fewer farmers' wives now work on the farm: 55% of them in 1997, as against three quarters in 1979. All in all, in 1997, agricultural holdings provided employment for 1,260,000 family members, 473,00 of them full time, and 140,000 permanent farm workers. This workforce accounts for about 4% of the total working population (compared with 8% twenty years ago), a level very close to the European average, to which should be added employment in the food-processing industry, itself fairly stable at around 2.7% of the total working population.
Agricultural production
The total value of agricultural production is now running at about EUR 63 billion, 23% of total EU production, a percentage close to France's share of the EU's geographical area. Agriculture now accounts for about 2.3% of value added to the gross domestic product, equivalent to that of the food processing industry.
The steady decline of this percentage has been due, during periods of strong economic growth, to an increase in production markedly below the general growth rate, while farm-gate prices kept pace with average GDP prices. On the other hand, for the past twenty years the growth in the volume of agricultural production has been close to general growth. The continuing decline of its share of GDP is mainly attributable to the steady deterioration in agricultural prices relative to prices in general with the saturation of the European single market and changes to the CAP.
Agricultural production is not uniformly distributed across the national territory. The regions of the north and west contain most of the farmland, the largest farms and the bulk of production, and are consequently now encountering the same problems of environmental management as other regions of northern Europe. Conversely, the south/south-eastern half of the country contains most of the mountain areas and less-favoured areas, and thus suffers from low agricultural incomes and population density.
National production very largely satisfies France's domestic demand for the principal products, with the main exceptions being certain oil seeds and oil cake for animal feed, some fruits and vegetables, certain meats (particularly sheep meat), various tropical products and fishery products.
Foreign trade
France's foreign trade balance in agrifoodstuffs, was positive for the first time in 1969, and since then the surplus has substantially increased. It now regularly tops EUR 9 billion. Today it accounts for only part of the trade surplus, but its contribution has often been decisive in the past, notably at a time when the trade balance played an essential role in the management of exchange rates.
This positive balance results from far larger trade flows: over EUR 35 billion of exports and about EUR 26 billion of imports. France has thus become the world's second-largest exporter of agrifoodstuffs. The bulk of this trade is within the EU: about 70% of agrifoodstuff exports and imports, accounting for 75% of the trade balance in these products.
In order of decreasing importance, the main items in surplus are: wines and beverages, which, after strong and steady growth in exports, since 1970 alone account for over 90% of the total trade surplus; cereals, where the surplus peaked in 1985 and now fluctuates at around EUR 4 billion and, finally, dairy products, live animals, sugar and sugar-based products.
The main items in deficit are fishery and aquaculture products, tobacco (with the increasing use of mild tobaccos), fruit and fruit-based preparations, exotic products (coffee, tea, spices, cocoa).
Changes in French agriculture
The present situation of French agriculture results from a prolonged period of change, which is certainly not over, even though it is continuing under different conditions.
Despite the country's large areas of farmland, French agriculture was unable, before the 1930s and a fortiori in 1945, to cover the entirety of the nation's food needs. The particular circumstances of France's economic development had made it a "special case", with productivity lagging well behind that of other countries. From 1945 onwards this situation began to change radically. Faced with the double necessity of rapidly resolving the problems of feeding the nation and limiting the proportion of the workforce engaged in agriculture in order to meet the needs of reconstruction and industrial development, the government made great efforts to develop production and productivity: agricultural machinery and fertilizers were among the priority sectors in the first modernization plan. These efforts soon produced results, to the point where imbalances appeared from the mid-1950s in certain markets where production was growing faster than domestic demand (milk and beef), leading to the creation of the first national intervention bodies.
Creation of the European agricultural market
In this context, the opening-up of the common agricultural market seemed to farmers to be both an opportunity and a danger. An opportunity, because the market of the first six member countries was still clearly short of the principal products; but a danger too, because the productivity of French agriculture lagged behind that of other States, at least in livestock production and certain intensive crops. It was against this background that young farmers prevailed upon the government, in the early 1960s, to institute a "structural" policy designed to promote the growth and modernization of farms, by encouraging the retirement of elderly farmers and managing the distribution of the farmland which thus became vacant. The guidelines and instruments of this policy were largely incorporated, from 1972 onwards, in the "socio-structural" policy of the European Economic Community (EEC).
In fact the fears turned out to be excessive. Europe's other founder members, faced with the same problems as France, had adopted similar policies. So the Common Agricultural Policy (CAP) was an extension of the main lines of those policies. The protection of the domestic market and the market intervention mechanisms made it possible to continue regulating agricultural prices, thereby giving a powerful stimulus to investment in farms and the productivity of labour, land and animals, boosted still further by the fact that, on the whole, common prices have been set at the highest levels already existing in member States, leading for example to a marked rise in the price of cereals in France.
So the creation of a common market in agriculture has not led to strong competition between member countries, but rather to a general expansion, initially in the domestic market, then in international markets.
Against this background, the necessary restructuring of agriculture has taken place without too many problems. The very rapid growth of labour productivity (over 8% a year), has occurred without major social difficulty, since the reduction in the number of farms was almost entirely due to the retirement of older farmers and the fact that in some cases agricultural production ceased on their former properties. The stability of the relative producer prices meant that people employed in agriculture reaped the benefits of their productivity gains: farm incomes rose in line with average wages in the rest of the economy.