Excerpts from the report: Algeria has pursued a policy of nationalization in agriculture since it gained independence in 1962 and has placed most of its mechanized agriculture in the hands of government-regulated cooperatives. Cooperatives in both rural and urban areas are encouraged by the Algerian Government as the basic means for combating unemployment and for helping to reorganize the economy. Increased emphasis is being placed upon the production of crops for local consumption at the expense of such export crops as wine grapes (which are exported as wine) and durum wheat. Further improvement of water supplies and grazing conditions for livestock is an additional goal. Projects already underway--with the help of the United States--include contour farming, reservoir construction, irrigation, land reclamation, reforestation, and road building.