French experience with group farming, the GAEC (groupements agricoles d"exploitation en commun)

THE LAW REPRESENTS A DETERMINATION TO GIVE GROUP FARMING EFFORTS A CLEAR-CUT LEGAL FOUNDATION FOR A NEW STRUCTURAL FORM IN AGRICULTURE. THE PURPOSE IS TO PROMOTE ENLARGEMENT AND MODERNIZATION OF FARMS WHILE PRESERVING THE SOCIAL VALUES OF THE FAMILY FARM UNIT, THE PRINCIPLE OF PRIVATE PROPERTY, AND THE REWARDS OF COMMUNAL ACTIVITY. GAECS ARE RECOGNIZED LEGALLY AS CORPORATIONS BUT ARE EXEMPT FROM THE FEES AND CHARGES LEVIED UPON THE CREATION OF CONVENTIONAL CORPORATIONS. TENANTS AND LEASEHOLDERS CAN BE MEMBERS OF A GAEC, BUT THERE CAN BE NO SILENT OR NONPARTICIPATIVE MEMBERS. TO ILLUSTRATE CAPITALIZATION AND OPERATIONAL DETAILS, TWO CASE HISTORIES ARE PRESENTED. THE TYPICAL GAEC IS PREDOMINANTLY A FAMILY AFFAIR. IN 1973 THERE WERE A TOTAL OF 3,500 GAECS INVOLVING 9,100 MEMBERS, OCCUPYING AN AREA OF 316,000 HECTARES, OR JUST UNDER ONE PERCENT OF THE AGRICULTURAL LAND AREA IN FRANCE. THE AVERAGE GAEC FARM IS 99 HECTARES, COMPARED TO 20 HECTARES FOR OTHER SMALL FRENCH FARMS. PROBLEMS CONFRONTING GAECS INCLUDE THE CONFLICT BETWEEN INCREASED MECHANIZATION AND THE NEED FOR PROVIDE WORK OPPORTUNITIES FOR ALL MEMBERS; QUESTIONS OF INHERITANCE AND CAPITAL GAINS; AND THE QUESTION OF PART-TIME FARMING AND OFF-FARM WORK. FINANCIAL RETURNS HAVE BEEN NO BETTER THAN THOSE FROM COMPARABLY SIZED NON-GAEC FARMS.