of farms has decreased from 1.6 million to less than 900,000. Before the end of the 1990's another 200,000 to 400,000 farms are expected to be out of business. The farmer, in France, has not had an increase in real income since 1970. During this same period, non-farm incomes rose approximately 50 percent in France. This is true despite the fact that productivity quadrupled in the last four decades. France is a socialist country and as such does not like to see unemployed workers. Continuing to keep the labor force working is a public good which is not counted in the cost of production of farm products.
The agricultural section of the economy of France accounts for four percent of France's GDP. France agricultural exports account for 16 percent of all of France's exports. This is a significant proportion. One sixth of all voters in France have ties to the agricultural sector. It is not wise to be a politician in France and upset the farm lobby. A major reason for the farm sectors prevalent place in the French economy is the level of subsidy the European Union and France gives to its farmers. The subsidies, which are tied to production, raise the price of farm products for the farmers. This creates an inefficiency in the marketplace.
The fear of the French farmers is real. Some will be disappearing before the end of the century. This will happen regardless of whether the European Community opens its borders to free trade in agricultural products. It is expected that between 200,000 and 300,000 farms will vanish from France. Other farms will become specialty
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