Rural Renaissance in the U.S. Virgin Islands By Jerome L. McElroy Associate Professor of Economics University of Notre Dame In the post World War II era, the tourism growth and indus- trial diversification which have taken root in several small Carib- bean islands have inevitably been associated with noticeable declines in agricultural activity. The expanding and relatively high Income opportunities offered by these two newly emerging dyna- mic economic sectors have invariably competed resources, especi- ally land and labor, away from traditional rural uses. The U.S. Virgin Islands is no exception to this general pat- tern. According to Table 1, during the two decades of most rapid expansion, 1950 to 1970, the number of farming units fell by 542, a loss greater than the total count of farms in existence in 1960 (501). The proportion of-total land area in farm acreage declined from 74% to 24% over the same period. The absolute loss in farm acreage was approximately 42,000 with almost half of this decline occurring between 1964 and 1970. This period coincided with the most intense growth in tourism in St. Thomas/St. John, the estab- lishment of heavy industry in St. Croix, Amerada Hess and Harvey Aluminum (later Martin Marietta), and the phase-out of commer- cial sugar production. For example, the average acreage loss be- tween 1950-64 was 1,612 acres per year. In contrast, between 1964-70 the average annual loss rate was 3,178, or nearly double the previous mean yearly decline. Furthermore, the loss in land used for crop raising -- gener- ally a very strong barometer of farm effort -- was more severe than the drop in grazing acreage. In the former case, harvested cropland declined from 5,564 acres in 1950 to only 737 acres in 1970, an 87% less. In the latter case, grazing lands fell from 30,329 to 7,583, a 75% decline. During the same time frame, the percentage of total labor force actively engaged in agriculture/fisheries drop- ped from 20% to less than one percent. What is even a more dramatic index of waning viability, the proportion of farm opera- tors working 200 or more days off the farm increased from 28% to 53 percent. This indicates that by 1970 agriculture in the Virgin Islands had become not only a relatively insignificant sector but also a secondary occupation and not a primary income source for those few so engaged. For in 1970 more than half of the farmers were spending two thirds of their time in off-farm pursuits. Undoubtedly, this growing marginalization stemmed directly from the economic adjustments and redeployment of resources required by the two new export sectors of tourism and manufacturing in conjunction with residential/commercial construction and a bur- geoning local government. On the positive side, however, Table 1 also demonstrates the remarkable rural resurgence which has taken place since 1970. Although the causes of this expanded agricultural activity are as yet unclear, the trends towards increased farm effort and produc- tion are unmistakable. For example, total land area in farms rose from 24% in 1970 to nearly 30% in 1978. The number of new farms increased by 166, a jump of 78% over 1970. Total farm acreage grew by approximately 4,000 acres or at an annual rate of 500 new acres per year. Acreage in harvested cropland rose by 60% while grazing lands grew at a phenomenal 150% with over 1,400" acres on the average being added each year between 1970-78. Certainly this growth in pastureland represents a strong indication of the livestock direction of recent agricultural growth. In addition, increases in other measures of farm effort, while not as dramatic, are nonetheless impressive. These include (see Table 1) visible increases in mechanization (tractors and trucks) with an attendant decline in the share of farms using hired labor, as well as growing proportions of farms purchasing feed for livestock and poultry, and purchasing fertilizer. The patterns of agricultural production closely parallel the TABLE 1 MEASURES OF FARM EFFORT, 1950-1978 No. Farms % Land in Farms Acreage Harvested Grazing % Operators 200 days off-farm % Farms with: Tractors Trucks Electricity Piped Water Hired Labor Purch. Feed Purch. Fertil. 1950 754 73 5 62,113 5,564 30,329 28.4 1.7 10.3 (NA) (NA) 45.2 52.4 2.5 1960 501 52.2 44,062 4,272 21,483 46.5 6.0 26.3 67.5 32.1 30.3 24.8 11.6 1964 466 46.8 39,539 5,134 19,611 51.7 9.9 36.3 90.1 55.2 36.7 46.1 18.8 1970 212 24.2 20,470 737 7,583 52.8 29.2 51.4 84.9 77.8 35.8 52.8 14.6 1975 327 29.2 24,703 751 15,452 34.2 31.2 69.1 93.6 76.1 33.9 67.3 19.9 1978 378 28.9 24,397 1,184 18,929 50.5 28.6 69.1 91.0 S86.2 30.2 66.4 20.9 Source for this and other tables: U.S. Census, U.S. Department of Commerce, US. for 1959, 1964, 1969, 1975, 1978. Census of Agriculture