The
dissolution of the Ottoman Empire after World War I led to the
League of Nations giving
Great Britain a
mandate to administer Palestine. The mandate lasted from 1920 to 1948. The mandate "included the incompatible goals" of encouraging settlement of Jews while protecting the rights of the Palestinian Arabs and a small population of European Christians. According to 1922 census, Jews made up 11 percent of the population of 750,000 in the British mandate with Palestinians, both Muslims and Christians, making up almost all of the remainder. The British conducted surveys and implemented policies to convert land cultivated in common by Palestinian communities into private property. As a consequence, the percentage of land cultivated by Palestinian communities in the ''musha'a'' system declined from 70 percent in 1917 to 25 percent in 1940. The mandate period is also characterized by the side-by-side existence of the indigenous agricultural systems of Palestinians and the imported technology of Jewish farmers, the rise of capitalism in the agricultural sector, the rapid increase in the Jewish population due to immigration, and the progress in growing and marketing cash crops by both Jewish and Palestinian farmers.
Palestinian Arab agriculture During the mandate period, the typical Palestinian farmer in the highlands continued to practice subsistence farming of wheat, barley, and millet and continued to have problems of too-small holdings, debt, and uncertain tenancy. "They devoted their energies into holding on to what they had." Yields of the grain crops varied greatly from year to year and imports were necessary to make up deficits in the demand for grain for local consumption. The share of farmland devoted to growing grain declined (as did the ''musha'a'' system of land tenancy in favor of privately owned land) as Palestinian agriculture increased in diversity. Palestinian production of export and commercial crops increased rapidly. Vegetables (including potatoes, a new crop), olives, and fruit, especially citrus, were the most important commercial crops. As opposed to grain production in the highlands, most commercial agriculture was on the plains near the Mediterranean Sea and irrigation was commonly used to make up deficits in precipitation. Inland
Galilee was an area of increase in growing olives and producing olive oil. During the mandate period, Palestinian vegetable production increased more than ten-fold, olive production more than doubled, and acreage planted in citrus increased more than seven-fold. Citrus comprised about 40 percent of the value of the agricultural exports of the Palestinian Arabs. Despite the rapid increase in Palestinian citrus cultivation, by 1945, the acreage of Jewish-grown citrus had risen to slightly exceed Palestinian acreage. Palestinian vegetable production continued to be almost triple than of Jewish production. The production of wheat, barley, and olives was dominated by Palestinian farmers.
Jewish agriculture During the mandate period the Jewish population in Palestine increased much more rapidly than the Arab Palestinians. In 1918, the population of Palestine consisted of about 60,000 Jews and 630,000 non-Jews. By 1947, the population was 630,000 Jews as compared to 1,324,000 non-Jews. The increase in the Jewish population was mostly due to immigration. Jewish agriculture increased as the Jewish population did. In 1914, the 6.4 percent of cultivated land owned by the "European sector" (predominately Jews) increased in 1941 to of land, 24.5 percent of cultivated land. Agriculture and the acquisition of agricultural land served the
Zionist objective of creating a Jewish state. The Jews mostly purchased land from large landowners on the plains near the fertile Mediterranean coast rather than from the ''musha'a'' peasants in the hills and mountains in the interior. The first Jewish settlements utilized Palestinian labor, but soon the standard was to employ only Jews on Jewish-owned land even although the cost was higher than when Palestinian labor was used. The Jews claimed that the money they spent for land stimulated the former landowners to invest in modernizing Palestinian agriculture. Charles S. Kamen doubts that view as many land owners were urban dwellers or not residents of Palestine, although some of the money may have been invested in Palestinian citrus plantations. Palestinians claim that the Jewish land purchases displaced many farmers. Kamen estimates that the displacement amounted to between 10,000 and 30,000 Palestinians.
Funding of Zionist labour settlements The acquisition of land by Jewish settlers was possible through funding from the Jewish National Fund whose capital mostly came from Zionist institutions like the Foundation Fund and Nir. By the end of 1941, 34,440 Jews populated these holdings with 10.7 dunums per person. At the same time an Arab fellah family of 6 owned an average of 30-35 dunams of land. In 1941 the 'labour settlements' were utilizing machinery at a higher level than the fellaheen with 251 tractors and 95 combines as well as lorries and threshing machines on the sites. Another cost included the concrete buildings in Zionist settlements compared to the fellah's had mud houses. At the end of 1936 the capital of the farms came from Zionist institutions (66%), loans from other institutions (11.7%), and the capital of the settlement itself excluding land given entirely by Zionist institutions (22.3%). Therefore, the settlement's capital made up less than 10% of the property. ==Partition and war==