muz_6

__Economic Policy: Agriculture – Battle for Grain__


 * __Background:__**

. Traditionally, Italy needed to **import** a large amount of **grain** to sustain her people, Mussolini saw this as a **weakness**. . Much like in Spain **peasants owned very small portions of land** and **huge areas** of agricultural land where **owned by the rich**. . **Farming methods** where fairly **dated** and needed to be **updated** to **increase production**.

. In terms of general economy, **Mussolini** was fairly **inept:** he came to power with few economic policies and most were initially designed to **increase** his **personal power** / **prestige**.


 * __Mussolini's Solutions:__**

He introduced **grants** for farmers to buy tractors / fertilisers, to **increase productivity** and **modernise agriculture**.

He "**guaranteed**" farmers a **high price** for their grain to encourage production. Mussolini also introduced the policy of **land reclamation**, whereby areas of land where re-claimed by man, (eg: the drainage of marshes to create land) to create new farming land.


 * __Results - positive:__**

Between **1925 – 35**, **grain imports dropped** by **75%** and national produce rose by aprox 2 million tonnes per year.

This also **created jobs** during the **depression**, but, overall, **success** was very **limited,** as not much land was re-claimed.
 * Draining of the Pontine Marsh**: A great **propaganda** piece, this was a malarial marsh located some 50 km away from **Rome**, and was close enough for international press based in Rome to pick up on the draining of it for new farmland.


 * __Problems arising from policies:__**

Much land in southern and mid-Italy was re-claimed for **wheat production**, despite the soil and temperature of the South being un-sustainable for such a crop, and thus **exports** on traditional products such as **wine / olive** **declined** as a result of less land being available for those crops.

Due to new government **taxes** and **tariffs** on **imported** grain, **bread prices rose** for the average Italian.

As a result, **urban migration** **increased**, reducing the number of farmers by about **half a million** people.
 * Rural poverty** worsened as the USA was hit by the **depression**, meaning there were no jobs, no money and no reason for Italians to **emmigrate** to the US (as they have been doing for years).


 * __Blunders:__**

Mussolini claimed he wanted to "**ruralise**" Italy, creating a class of **fascist** faithful **farmers** / **peasants**.

However, the government **did nothing** to make this happen.

Mussolini also scraped a **1922 law** taking **land** away from rich owners and breaking it up for farmers, out of fear of losing **support of the rich**.