Note that the World Bank's WDI data does not appear to include adjustmentsfor 1991 war-related population loss as is done by the U.S. Bureau of the Census in their population series for Iraq. (back) In the early 1990s, cultivated areatemporarily expanded to nearly 5.5 million hectares, due primarily to government incentives (seesection "Iraq's Agriculture in the post-gulf War Era: 1001-2002" of this report), before returning to under 4 million. (back) U.N. AQUASTAT, "Country Profile:Iraq," -- FAO's Information System on Water and Agriculture, Food and Water DevelopmentDivision, 1997 version. (back) Iraq was part of the Ottoman Empirefrom the mid-1500s until 1920 when it became a British Mandate. Independence was achieved by Iraq in 1932, but Britain retained a role in defense and foreignaffairs. "World Agriculture and Trade: Iraq," Agricultural Outlook , November 1980, pp. (back) USDA. The Economy of Iraqi Kurdistan since 1991," from Iraq's EconomicPredicament , Kamil Mahdi, Editor. "AgriculturalPolicy Issues and Challenges in Iraq" Short- and Medium-term Options," from Iraq's EconomicPredicament , Kamil Mahdi, Editor. (back) For a discussion of Security Councilresolutions and requirements on Iraq, see CRS Issue Brief IB92117, Iraq: Weapons Programs,U.N. Requirements, and U.S. Policy . (back) For a discussion of Security Councilresolutions related to the Oil-For-Food Program in Iraq, see CRS Report RL30472 , Iraq: Oil-For-FoodProgram, International Sanctions, and Illicit Trade ; and United Nations, Office of the Iraq Program -- Oil forFood; "About theProgram: In Brief." ; and USDA "PSD online database." (back) U.S. General Accounting Office. Iraq's Participation in U.S. (back) A later section, "Agricultural Situationin Northern Iraq: 1991-2002," describes the agricultural sector in the 3 governorates of Kurdish-controlled northernIraq during the post-Gulf War period. Although they are from FAOSTAT, they reflect the data officially reported by the Iraqigovernment to the FAO. Thisfell to 177 kg/capita/year in the 1970s, and 130 in the 1980s, but had regained ground to 155 during the 1990-94period. "HumanitarianNeeds and International Assistance in Iraq after the Gulf War," from Iraq's EconomicPredicament , Kamil Mahdi, Editor. (back) The Iraqi government had refused toagree to an earlier offer by the U.N. Security Council to establish a similar OFFP (Resolution 706;Aug. 15, 1991). For more information on the U.N. Oil-For-Food Program and trade during the decade of the 1990ssee CRS Report RL30472 , Iraq: Oil-For-Food Program, International Sanctions, and Illicit Trade . 88. The black market rate has shown considerable variation over the past decade, often in relationto the U.N. sanctionsstatus and international petroleum prices. During 1996 the dinar rose from its lowest value of ID3,000 per U.S.dollar to ID1,000, reportedlyin anticipation of the adoption and implementation of the OFFP. In March 2003, the blackmarket rate wasestimated to be U.S. $1 = 2,700 ID. (back) U.N. Office of the Iraq Program,Oil-for-Food, Humanitarian Imports, "Status of ESB account on 31 Dec.2002." (back) Most of the information in this sectionrelevant to the agricultural sector of northern Iraq (unless otherwise indicated) is fromLeezenberg's chapter "Refugee Camp or Free Trade Zone? Return to CONTENTS section of this Long Report.
Iraq's agricultural sector represents a small but vital component of Iraq's economy. Over the past several decades agriculture's role in the economy has been heavily influenced by Iraq'sinvolvement in military conflicts, particularly the 1980-88 Iran-Iraq War, the 1991 Gulf War, andthe 2003 Iraq War, and by varying degrees of government effort to promote and/or controlagricultural production.
Rapid population growth coupled with limited arable land and a general stagnation in agricultural productivity has steadily increased dependence on imports to meet domestic food needssince the mid-1960s. Prior to the 1991 Gulf War, Iraq was a major trading partner with the U.S. Iraqbenefitted from substantial USDA agricultural export credit during the 1980s to purchase largequantities of U.S. agricultural commodities. By the mid-1980s Iraq was the major destination forU.S. rice exports. Iraq was also an important purchaser of U.S. wheat, corn, soymeal, and cotton. After the 1991 Gulf War, U.S. agricultural export credit to Iraq was ended and USDA was left with$2 billion in unpaid credit. U.S. agricultural trade with Iraq remained negligible through 2002.
Present-day Iraqi agriculture and trade have been heavily shaped by the 1990 U.N. sanctions and the Iraqi government's response to them. From 1991 to 1996, prior to the startup of the U.N.'sOil-For-Food program (OFFP), Iraq's agricultural imports averaged $958 million or less than halfof the pre-war level. Under the OFFP, the value of Iraq's agricultural imports rebounded to average$1.5 billion (during the 1997-2002 period).
In early 2003, just prior to the U.S. -- Iraq War, the country's agricultural sector remained beset by the legacy of past mis-management, unresolved disputes over land and water rights, and thelingering effects of a severe drought during 1999-2001. Clearly, Iraq will be dependent on importsfor fully meeting domestic food demand for several years to come. In the near term, food aidshipments are likely to play a major role in determining the share of Iraq's agricultural imports, andmay influence the evolution of future commercial imports.
This report is an extension of CRS Report RS21516 , "Iraq's Agriculture: Background and Status." It provides a brief description of Iraq's agro-climatic setting and the history of agriculturalpolicy, production, and trade leading up to the period just prior to the 2003 Gulf War; it reviewsissues likely to affect the long-term outlook for Iraq's agricultural production and trade; and itprovides several tables of historical data relevant to understanding the evolution of Iraq's agriculturalproduction and trade. This report will be updated as events warrant. For detailed discussion on thestatus of humanitarian aid efforts, see CRS Report RL31833 , Iraq: Recent Developments inHumanitarian and Reconstruction Assistance . For discussion on the U.N. Oil-For-Food Programand trade during the decade of the 1990s see CRS Report RL30472 , Iraq: Oil-For-Food Program,International Sanctions, and Illicit Trade .