In spite of a strong demographic disequilibrium and unfavourable natural conditions, Yugo-Slavia has been able to improve considerably the output of its farm production. The agrarian reform, through which land was transferred from private farms in order to obtain the minimum acreage of 10 ha, contributed to create a socialist sector. The author analyses the success and difficulties met with by socialist firms and cooperatives. The socialization raises many problems. The expansion of the socialist sector necessitates expensive purchases of land and the capital thus invested lacks in other sectors. The domestic demand for farm products increases with the income and the population at the expense of foreign trade. Farm prices and wages increase. These trends are partially due to the installation of industries in the country, which increases the income of the farmers but reduces their farm production. The economic reform in progress fights these trends by favouring a centralization of the industry. However, this eliminates the industrial employments for the farm population whose out-migration should be prevented.
