The Economic Performance of Proportional-Profit Sugar Farms in Puerto Rico, 1950-62

This study analyzes the economic performance of the proportional-profit sugar farms of Puerto Rico during 1950-62. The farms were established on lands acquired by the Puerto Rican Government under provisions of the Land Law of 1941. Net income from the farms is distributed to farm labor in proportion to wages received. The proximate goals of the program were the elimination of corporate latifundia, maintenance of productive efficiency, and wider distribution of benefits from the farms. The analysis shows that stated goals of eliminating corporate latifundia while retaining production efficiency were only partly achieved by the program. Also, the stated goals were in conflict with broader goals of economic policy--growth, full employment, and high sugar-export levels. The policies followed were consistent, however, with economic development objectives of the 1950's and later years.