T raditionally, agriculture provided the major economic activity of the Vietnamese people. Yet, because of increasing hostilities in the mid-1960s, farmers were dislocated from rural production and many became refugees, or were drafted for military service, or migrated toward urban areas for personal security and higher paying jobs. The result was that during 19651968 the country experienced a sharp decrease in food production, especially in production of its essential rice crop. The changes in Government policies and programs during the late 1960s helped farmers reverse this declining production trend: Vietnam's food production is currently higher than it ever was in the past. This article examines the development of this agricultural turn-around and the implications it will have for South Vietnam during the 1970s. In the winter of 1966-67 the Government of South Vietnam made the politically difficult decision to raise the official price of rice in the cities. This enabled prices received by farmers for their principal crops to double. At the same time, prices paid to farmers for meats and vegetables were allowed to rise to very attractive levels while the cost of the goods farmers needed to produce crops and livestock increased by less than one quarter. This shift in economic emphasis to favor rural producers was one of the most important political and economic development decisions made in the Vietnam war. Because of this decision, the Vietnamese farmer progressed from being a peasant largely outside the market economy and highly resistant to innovations toward becoming a modern agricultural producer responsive to market conditions and improved agricultural technology. It provided the incentive and income needed to increase production and, consequently, an opportunity for vast numbers of farmers to shift away from subsistence farming and economic stagnation toward surplus production and increased prosperity. This change will have profound significance in the postwar era as South
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