Termination report

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Termination report
Hildebrand, Peter E.
Hildebrand, Peter E.
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University of Florida
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ADVISOR: Peter E. Hildebrand

US AGENCIES: University of Florida


FIELD: Agricultural Economics
(Farm Management and
Production Economics)

LENGTH OF TOUR: April 1972 to October 1974


Basically the position was created for the purpose of helping the N4AG establish a Department of Farm Management with responsibilities in research, extension and teaching. The Department originated in the DGEA y P (now DGE y PA) and later (March '73) was transferred to CENTA. Corollary duties associated with the position included: 1) helping AID and MAG develop the CENTA loan paper, 2) initiate and guide the agricultural sector analysis of NAG and AID, and 3) advising in other miscellaneous areas such as computer programming and various strategy
and loan papers.


1) Creation of a Department of Agricultural Economics at CENI'A with a staff of seven technicians and two advisors (one with the Peace Corps). The Departmental budget for 1974 was 0107,000 and for 1975 the request was for 9265,000. The Department is active in research, extension and teaching activities.

2) Development of an operational linear programming model of the small and medium farm sub-sector, excluding cotton, coffee and sugarcane farmns. Emphasis was on the potential effect of a grain storage and marketing
program and the results were utilized in the IRA loan paper.

3) Analysis of the vegetable production potential of the Zapotitan District including the development of an operational linear programming model of the District and completion of an M.S. thesis by David Zimet (University of Florida) which contributed to a TAB study on the potential for vegetable production and exports in Central America and Mexico. This study was undertaken through a $30,000 sub-contract negotiated between North Carolina State University (NCSU), the University of
Florida and the MAG.

4) Major contribution to CETA loan paper which resulted in the $4 million loan to that institution.

5) Development of operational computer programs in analysis of variance, multiple and stepwise regression and linear programming which are being used by CENTA, DGE y PA, CONAPLAN, DGORD, IRA and the Catholic University.

6) Completion of several research projects in vegetables, grains, livestock and sugarcane.

7) Development of a multiple cropping system (Multicultivos) specifically adapted to the land short, labor abundant conditions of the country and based on the production of basic grains and vegetables, the highest priority agricultural products in the five year plan. This system provides the technology for a national pilot promotion program in 1975 and a massive demonstration program in 1976 which will have as goals: 1) an increase in the production of basic grains and vegetables, 2) an increase in rural incomes, particularly among small farmers, and 3) a decrease in rural unemployment. National interest in these multicultivo programs was also responsible for the request by CENTA for a new expanded University advisory contract team which is now in the process of negotiation.


. HILDEBRAND, PETER E. - "Anlisis Agroecon6micos mediante Superficies
de Respuesta", Departamento do Administraci6n Agricola, DGE y PA, M1AG,
San Salvador, El Salvador, Septiewbre, 1972.

. ANDREW, CHRIS 0. y PETR E. HILDEBRAND - '"lanificaci6n y Ejecuci6n de Investigaci6n Aplicada" Departamento de Administraci6n Agricola, DGE y PA, 1MAG, San Salvador, El Salvador, Septiembre, 1972.

SPERIA, EDUARDO y PETER E. HILDEBRAND - ?fAnilisis Econ6mico de
Fertilizaci6n en Cinco Hortalizas en San Andres", Departamento de Administraci6n Agricola, DGE y PA, MAG, San Salvador, El Salvador,
Marzo, 1973.

" HILDEBRAND, PETER E. - 'Unforeseen Consequences of Introducing New
Technologies in Traditional Agriculture", XVth International Conference
of Agricultural Economists, Sao Paulo, Brazil, August 20-30, 1973.

� "Gu'a para el Cultivo del Tomate", Circular No. 104, CNTA, MAG,
Santa Tecla, El Salvador, Enero, 1974. (Contributed).

" HILDEBRAND, PETER E. y EDIN C. FRENCH - r'Producci6n de Pepinos
Utilizando Tallos de Mafz", Departamento de Economfa Agricola, CENFA,
MAG, Santa Tecla, El Salvador, Febrero, 1974.

. HILDEBRAND, PETER E. y EDWIN C. FRENCH - "Un Sistema Salvadorefio de
Multicultivos: Su Potencial y sus Problemas", Departamento de Economia Agricola, CENTA, MAG, Santa Tecla, El Salvador, Febrero, 1974.

" "Estudios sobre la Aceptaci6n del Consumidor y el Potencial de Hercado del Tomate Fiesta", Serie Estudios Agroecon6micos No. 6,
DGE y PA, HAG, San Salvador, El Salvador, Marzo, 1974. (Contributed).

SZIMET, DAVID J. - "The Economic Potential for Increasing Vegetable Production in the Zapotitan District, El Salvador", University of
Florida, 1974. (Unpublished M.S. 1hesis).
" HILDEBRAND, PETER E. - '"Anglisis Econ6mico de Fertilizaci6n de Carla de Azu'car", Departamento de Economia Agrfcola, CETrA, MAG,
Santa Tecla, El Salvador, Octubre, 1974.

" HILDEBRAND, PETER E. - 'Manual del Uso de una Computadora Electr6nica para Regresi6n y Anlisis de Varianza", Departamento de Economia Agricola, CENTA, MAG, Santa Tecla, El Salvador, Octubre, 1974.


Problems which inhibit the efficient execution of the duties of an advisor can be grouped into 3 general categories. One of these is a clear definition of duties as interpreted or desired both by the host government and/or institution and by the sponsoring agency or agencies. A second area pertains to the human resources available to work with. The third general category necessary for the efficient conduct of duties relates to the physical resources available to the advisor and/or the persons or institute to which he is attached.

1) Definition of Duties
At the onset of the tour, the principal duty was clear, though general in nature. The HAG had requested and USAID/UFLA supplied through an "Institution Building" contract, an advisor to establish and develop a
Department of Farm M14anagement in 1IAG. This department was to be established initially in the DGEA y P and later transferred, as a more general Department of Agricultural Economics, to CENTA. During the course of the tour both AID and MAG modified the basic definition of duties to a certain extent.

Through two changes of administration of the agricultural program of AID, the emphasis has changed from one of primarily institution building to primarily research to the presently evolving action program, of extension and applied research. When the emphasis was on research, the role of institution building was clearly of secondary importance from the AID point of view. In the present situation institution building again becomes important as a necessary aspect of the action program.

With respect to the HAG, the basic problem in clearly defining a goal involves the nature of the agricultural economics program of CENTA and the location of the agricultural marketing portion of agricultural economics. To date, all marketing activities are being conducted by IRA and the DGE y PA. Neither of these units, however, treats the problems of the farmer in marketing a wide range of products and in

purchasing inputs. This aspect of agricultural economics clearly fits within the scope of the CFNTA Department of Agricultural Economics and the CENTA loan document and other documents of the GOES provide for this policy. However, so far only the farm management portion (except for teaching at EN\) has been transferred to CENTA.

It is also not clearly understood how the CENFA program in farm management differs from the agricultural economics work of the DGE y PA. The DGE y PA studies the farmer from the macro or sectorial point of view a cost of production study, for example, is a study of the farm sector as is. The Agricultural Economics Department of CENTA is concerned with how the farmer can improve his situation - how can he better utilize his resources. The DGE y PA is not equipped for nor does it have time to do this type of work.

2. Human Resources

The MAG has a severe shortage of well trained, professional personnel.
This is particularly acute in agricultural economics, a phenomenon found generally around the world. This shortage has been so acute that during most of 1973 my only counterparts were two perito agronomos - - I was acting head of the Department from March 1973 to July 1974. During this period, a very important element of the functioning of the Department was Tito French, a Peace Corps Volunteer in Horticultural Production. Had this Volunteer not been available during the tour, achievements would have been significantly reduced.

With respect to human resources, it must be said that the MAG has done everything in their power to supply people to the Department within budgetary restrictions and availability of appropriately trained and motivated people. Nevertheless, the scarcity of people has reduced the productivity of the project.

3) Physical Resources

The productivity of this position has depended on the provision of resources from several sources. Basic to the contract were resources from thie M4AG and AID/El Salvador (both direct and via the UFLA Contract). Other resources utilized have been from private industry in El Salvador
(FERTICA, BAYER Quimicas Unidas, and the Ingenio Central Izalco), from the North Carolina State University Contract and from the Peace Corps (in the form of the PCV).

MAG and CENTA have been very generous in supplying resources for the project and the Department even to the point of exceeding budgeted items. In 1973, when the Department shifted to CRIITA, there was no
budget to provide normal expenses. Personnel were loaned to CENTA from DGE y PA and CENTA provided operating funds from several departments and
from administrative funds.

Funds provided through the NCSU Contract were critical to the accomplishments achieved in the tour of duty. These were utilized not only for the

analysis of the linear programming model of the Zapotitan District, but also for vegetable and multicultivo experiments because of their implications in the potential for production and exports of vegetables from El Salvador. Even though MAG provided resources up to their maximum capability, the achievements accomplished in this tour could not have been realized in the absence of the NCSU funds.

The Ingenio Central Izalco provided land, labor, supplies and laboratory facilities for a continuing study of the economic application of fertilizer on sugarcane. BAYER and FERTICA have provided significant amounts of pesticides and fertilizers for the experimental work in Multicultivos at a time when, because of 'the energy crisis, th-is work would have had to have been curtailed drastically in its absence.

At times AID/El Salvador has been reluctant to provide resources for
the execution of this project. For many months transportation was a problem forcing me to use a great deal of time just trying to provide myself adequate transportation to carry out all the responsibilities of the position. The AID Mission also opposed additional funding which
would have been available through a continuation of the NCSU sub-contract. On the other hand, they did provide generous funding for computer analyses which proved to be very productive.


The first 7 weeks were devcted to the CENTA loan paper by mutual consent of MAG, AID and UFLA. Some time during this period was also spent working with IRA which was to have been included in the original loan.

The ultimate nature of the results of the tour depended on a large number of factors. The first decisive factor was the lack of an operating budget for the Department of Farm Management during the first year. Initially the Department had a head with a M4aster's degree in Agricultural Economics, three other technicians and a secretary. We were also provided with office equipment and office supplies, but that was all. We had no operating budget and/or transportation; we were completely dependent on
the AID vehicle.

Because of budgetary restrictions we were dependent on doing cooperative work with other departments or entities who could provide the necessary resources. Within the first month (June, 1972) we had chosen four studies (or potential studies) upon which to concentrate. Two of these were successful and were responsible in large part for the general nature
of the departmental program during this tour of duty.

A basic need of a farm management department is good information regarding farm prices of inputs and products. One of our first projects was to obtain farm level grain prices in cooperation with the Marketing ' Department of the DGEA y P. A questionnaire was pretested but the project got no further. To date, farm level prices still are not available - - one reason for the need of a marketing section in the department of CENTA.

A second project was to determine costs and returns on 70 corn demonstration plots in 17 Extension agencies in cooperation with the Extension Service. Although cooperation from Extension was very good, it turned out that the plots had been established too long before we initiated
the project to be amenable to providing adequate information. However, we used what information we could get to design record forms and train some agents in their use, so that we could initiate a new project on the bean demonstration plots whiich were to be planted in August. This project was quite successful and preliminary analysis of the data indicated significant differences between the traditional seeding methods and the recommended methods in the 400 m2 demonstration plots. Unfortunately, during one of the 6 changes of office location. within the Ministry,, all of the records on this project were lost and have never been found. Hence, the project was never completed.

One of the most successful and continuing projects was the initiation of a fertilizer study on 6 vegetables in cooperation with the Horticulture Department of ENA. Initially we superimposed simple fertilizer
experiments on. the vegetable plots that the students were then planting. The students and the Horticulture Department provided land, labor and supplies. Results of this first study were published and have provided information for continuing studies on vegetables. Cooperation with the ENA and the Horticulture Department was, and continues to be, excellent. As a result and natural consequence of this cooperation and initial work, the work in Multicultivos is located basically at ENA.

The fourth important area of work which the Department (while still in the DGE y PA) developed was related to sector analysis. Preliminary talks had already been held between the MAG and North Carolina State University on a proposed-study of the potential for vegetable production in El Salvador. This eventually was worked into a joint project between MAG, NCSU and UFLA, and was financed by a $30,000 sub-contract. The funds contributed toward the support of a graduate student (David Zimet) and research expenses. Zimet arrived in February, 1973 and completed his thesis a year later.

In December, 1972,,I began work on a sector analysis for AID and the MAG and worked mainly with David Weisenborn of AID. This effort required nearly full time for about 3 months and ultimately contributed to the IRA loan paper. This work plus Zimet's thesis are providing the
basis for a continuing sector analysis on which Zimet is now working with Planificaci6n. of the MG.

Another continuing project was initiated in September, 1972, when the largest ingenie in the country - the Central Izalco - requested help through the Minister of Agriculture to carry out economic studies on fertilizer use in sugarcane. This experiment, to study N, P and K as
well as time of application of the fertilizer, was planted on a 4 manzana field at the headquarters of the ingenie near Sonsonate, in November, 1972. The ingenie furnished labor, chemicals, laboratory analysis and recorded all data and we supplied the design, analysis and preparation


of data. A progress report on the first year's results is nowv being published. Already the ingenio has modified its fertilizer use policy
based on the prelimiAiary results.

Also, in November, 1972, we initiated two experiments with the Animal Science Department of CENTA. One was on the feed value of cull eggplants fed to pigs and the other was on the economics of feeding steers
in the dry season. Both experiments were completed and the results appeared very intersting but we were unable to obtain all the necessary data from the Animal Science Department to corrilete the analysis and write up the results. Repeated efforts on my part as well as by Prof. Reaves failed to obtain the weekly feed consumption data for the steers or the analysis of the prepared ration fed to the pigs as a comparison even though both were reportedly (and should have been) readily available. This is one failure I have never been able to understand.

The most significant work and that which has attracted the most attention has been in Muiticultivos, initiated in June, 1973. As was mentioned earlier, this work evolved from the vegetable work we were conducting at EA which in turn had developed because of our necessity of working with someone w~ho had resources.

The Department completed several experiments in vegetables and was heavily involved in experiments with the Fiesta tomato at the request of the Director of Research. Although only one publication on production of vegetables was comleted, the results have been incorporated into the newer work on Multicultivos and will eventually appear as recommendations in this form.

A key element at this time was the work of PCV Tito French in the Department. Our initial goal in the plots which were to become the first I'uticultivos trials was to determine the feasibility of using corn stalks as stakes for tomatoes. Bamboo stakes were becoming scarce and expensive and we. were using large numbers in the vegetable. work. Hence, we planted six plots of corn in double rows. A seminar on multiple cropping by Dr. Richard Bradfield at about the same time and earlier work by Damon Boynton in El Salvador, stimlated our interest, so we superimposed our first multicultivo trials on the double rows of corn. As the potential of the double rows in a crop system became evident we began to seriously design a system which had the potential for increasing productive rural employment, increasing
incomes on small farms and intensifying the use of land to aid in the increased production of basic grains and vegetables.

Our first reports on Multicultivos were presented at an international conference on multiple cropping in Turrialba, CostaI Rica, in February, 1974. As a result of this conference and others in El Salvador, Guatemala and Gainesville, international interest was generated in the project. Interest in the project in El Salvador has increased tremendously over
the same period of time.


As of this date, there are 7 regional trials in progress, 1 1/2 manzanas in experiments and demonstration plots at ENA and nearly 1 manzana in trials with the bean, corn and weed control programs of CENTA. A training program in Multicultivos is in progress for 12 PCV's, and others are planned for 30 agents and agronomos from various organizations in El Salvador and for 90 students from the Barcenas Agricultural School in Guatemala. For next year 8 to 10 pilot regional multicultivos promotion projects are planned with the Extension service and other agencies and all extension agents will participate in training programs with the hope that a national promotion program can be initiated in 1976.

In 1974 and 1975 the promotion program and much of the research will be administered by the Department of Agricultural Economics. In 1976 the promotion program will be in the Extension service and much of the research program will be directed by other Departments. At that time Agricultural Economics plans to be researching on the incorporation of Miticultivos on farms, on rotations using multicultivos, and the inclusion of livestock in the system.

This heavy influence of Agricultural Economics on Multicultivos is due to two factors. One is that the system was developed by the Department and hence, the original interest was centered there. Secondly, CENTA recognized that the combination of crops into systems to improve resource use was the area of work of Farm Management and therefore Multicultivos was logically centered in the Department. But there is a huge amount of work related to 1ulticultivos that is best accomplished in other departments. CENTA now is requesting an expanded University advisory team to help develop research programs for several departments which will contribute to the overall Multicultivo effort.
I leave this position with a great deal of sorrow, but also with pride in the accomplishments and with strong hopes for continued, strong development of the Department of Agricultural Economics of CENTA and its programs in research, extension and teaching. In July, 1974, Adrian Chac6n became the Department Head and provides the maturity, experience and training necessary for guiding the Department. The other personnel in the Department are mostly very enthusiastic about the program, and if they do not leave because of salary problems will continue to provide strong support.

In conclusion, it has been my pleasure to work with a fine group of Salvadoreans and North Americans on this project which has been well supported by the GOES from the level of the Minister of Agriculture on down. To the Minister of Agriculture and to CENTA, I offer to help in any way I can and whenever possible from my new post with ICTA in Guatemala.

PEH/nndef. -

I . .

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