Table 4. 5. vii


Gross domestic fixed capital formation in agriculture, by territories, 1956 through 1960


 1956 1957 1958 1959 1960
 Territory
 Territory Agricul- ota Agricul- TotalAgricul- otaAgricul- rotalgriculTotal
 ture ture ture ture ture


 Million BWI$
Jamaica 16.8 186.2 23.5 250.1 20.2 227.5 22.1 221.3 24.5 248.2
Trinidad and
Tobago 8.0 120.8 7.4 147.5 9.0 10.8 14.2
I.eeward Islands,
Windward Islands
and Barbados 6.7 39.0 7.8 45.0 6.9 44.0 44.0 49.0 11.6 52.0
British Guiana 4.3 48.0 N.A. 61.5 N.A. 60.9 12.7 59.1 N.A. 77.9


Source: Data and material developed during the study, and other available data.


 Capital output rates have been computed for the economies of Jamaica and Trinidad and
Tobago, but, for the economies as a whole, these rates have been rendered rather mean-
ingless because of big fluctuations in mining investment. In Jamaica, increments to pro-
duct in agriculture are not very high. Taking the total of gross domestic fixed product in
constant prices at 1959 and comparing it with 1956 we find an increment of BWI$17.6 mil-
lion only; but the gross investment in agriculture totalled BWI$ 65.8 million for 1957, 1958
and 1959 (at current prices). Although quantitative data are not available, there is evi-
dence that returns in capital are greater in agriculture in the smaller territories, partic-
ularly where there has been an expansion in banana.

 One of the problems of measurement arises from the fact that it is well nigh impossible
to evaluate capital formation brought about by the non-cash activities of peasant farmers
who may clear land, drain it and carry out other improvements with no cash transaction
having been registered. The costs of establishing banana must of course vary from site
to site, but some estimates have been given which indicate costs of approximately BWI $400
per acre in Jamaica, BWI$ 570 in Dominica, and BWI$ 810 in St. Lucia. Net returns on
banana are likely to be sufficient to recover this cost within two to three years.

 Credit has been available to farmers under various government schemes and fairly con-
siderable funds have been loaned under peasant development schemes of Development and
Welfare projects. Credit has also been available through sugar companies (usually just
on an annual basis) and other marketing organizations. To generalise, one might say that
credit has probably been more readily available than has the extension work necessary to
ensure proper returns on the investment. Where credit is given on crop liens, of course
repayment is generally ensured, but there is evidence that many small farmers are carry-
ing a heavy burden of indebtedness. This is probably most serious in British Guiana where