Northern agriculture and westward expansion
Download
1 / 36

Northern Agriculture and Westward Expansion - PowerPoint PPT Presentation


  • 251 Views
  • Updated On :

Northern Agriculture and Westward Expansion. Accounting for Growth. Between 1840-1860, 49% growth due to growth in Labor 26% growth due to growth in Capital 10 % growth due to growth in Land 15% growth due to growth in Productivity Most of population still in agriculture .

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Northern Agriculture and Westward Expansion' - sanam


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Northern agriculture and westward expansion l.jpg

Northern Agriculture and Westward Expansion


Accounting for growth l.jpg
Accounting for Growth

  • Between 1840-1860,

    • 49% growth due to growth in Labor

    • 26% growth due to growth in Capital

    • 10 % growth due to growth in Land

    • 15% growth due to growth in Productivity

      • Most of population still in agriculture


Increases in agricultural productivity l.jpg
Increases in Agricultural Productivity

  • Growth of Markets due to reduction in transportation costs

  • New Land

  • Technological Change

    • Mechanization

    • New techniques

    • Plant breeding


Land policy l.jpg
Land Policy

  • Louisiana Purchase of 1803 doubled the size of country

  • New Questions

    • Distribution of Public Land

    • Government of new territory


Land distribution l.jpg
Land Distribution

  • Sell land at full market value

    • Federalist idea increase revenue to central government

  • Sell land below market value

    • Jeffersonian ideal of a nation of small farmers

    • Small lots, low prices, credit

  • Both systems create opportunities for rent seeking behavior


Slide7 l.jpg


Pattern of settlement l.jpg
Pattern of settlement existing government

  • New England model-orderly settlement

    • Land Ordinance of 1785

    • Surveyed parcels, public auction

    • Lots of corruption

      • Difficult to enforce rules

    • Lots of Changing rules

    • Federal Government never makes much money


Distributional effects l.jpg
Distributional effects existing government

  • If land in West is better than the East

    • Wages rise

    • Rents in East decline

  • Fogel and Ruttner model


Too much cheap land l.jpg
Too much cheap land? existing government

  • Were settlers rational?

    • Returns of agricultural investment about the same as other investments

  • Cost of land was a small part of farm

    • Clearing land, capital, transportation costs

  • Land speculation

    • Informational asymmetry

    • Some got rich, some did not


Increases in agricultural productivity11 l.jpg
Increases in Agricultural Productivity existing government

  • Parker and Klein

  • Divided labor productivity into three part

    • # acres plowed and harvested per worker

    • Yield per acre

    • # of bushels threshed and prepared for market per worker

  • Used this to come up with labor productivity data for three crops, oats, corn and wheat


Results l.jpg
Results existing government

  • Oats- Q/L increased 365 percent from 1840-1860 to 1900-1910

  • Wheat- Q/L increased 417 percent from 1840-1860 to 1900-1910

  • Corn- Q/L increased 363 percent from 1840-1860 to 1900-1910


Where did most of this increase come from l.jpg
Where did most of this increase come from? existing government

  • Assume increases acres plowed, harvested threshed came from mechanization

  • Increases in yield per acre came from selective breeding and changes in location

  • Find that most of increase comes from mechanization


Mechanization l.jpg
Mechanization existing government

  • Plows

    • Wood

    • Cast Iron 1820s

    • Steel plows 1840s

  • Mechanical Threshing 1830s-1840s

  • Mechanical reaper invented in 1833-34

    • Harvesting is time critical


Reaper l.jpg
Reaper existing government

  • By 1850 only 3,373 sold

  • 1845-1857 73,200 sold

    • Most after 1850 (70,000)

  • Why was diffusion so slow until 1850 and then speeds up?


What size farm will use reaper l.jpg
What size farm will use Reaper existing government

  • Must be large enough (graph)

  • Why not increase size?

    • Cost of land

    • Cost of labor

    • Lack of demand

  • Suggests reapers not used earlier because wages were low and demand was low


Paul david l.jpg
Paul David existing government

  • Was St> actual farmsize

  • Did something happen in 1850 to change St or farmsize?


Computing threshold size l.jpg
Computing threshold size existing government

  • Cost of reaper was

    • C=(d+i)Pr

      • D=depriciation

      • i=interest rate

      • Pr=price of reaper

    • Benefit

      • B=StLsW

        • St=threshold size

        • Ls=labor saved

        • W=wage


Slide20 l.jpg

  • Benefit=Cost existing government

  • StLsW=(d+i)Pr

  • St=((d+i)/Ls)(Pr/W)

  • Given d, i, Ls in find relationship between St and (Pr/W)


Slide21 l.jpg

Acres existing government

In 1850 Average farm size in Illinois is 15-16 acres. Because of W increase, St fell to 35 by 1857, average farm size increase to 25-30

46.5

35

Pr/W

73.8

1857

97.6

1850


Increases in demand l.jpg
Increases in Demand existing government

  • Increase in farm size caused by increase in demand from Europe

  • Increase use of Railroads cause reduction in transportation costs


Olmstead s criticism of david l.jpg
Olmstead’s Criticism of David existing government

  • How sensitive is the estimate of St on assumed values for d and i?

    • Depreciation depends on average life of reaper

      • David 10 years, Olmstead 5 years

    • Interest rates

      • David 6%, Olmstead 10%

    • Olmstead St 1850 89.4 1857 67.6


Average farmsize vs distribution l.jpg
Average farmsize Vs distribution existing government

  • Lewis Jones

  • Looks at distribution of farms to find number of farms above St

  • Manuscript Census data

  • Finds if David is correct there are too few reapers and if Olmstead is correct there are too many


Sharing l.jpg
Sharing existing government

  • Was it possible to share reapers?

  • Problems

    • Common property

    • Opportunistic Behavior

      • Who’s crop is harvested if the storm is coming?

  • Evidence suggests sharing did occur

  • Rental market for reapers

  • Reapers adoption probably demand driven


Was mechanization only important source of productivity advance l.jpg
Was Mechanization only important source of productivity advance?

  • The Red Queen and the Hard Reds: Productivity Growth in American Wheat, 1800-1940

  • Alan L. Olmstead and Paul W. Rhode

  • The Journal of Economic History, Vol. 62, No. 4 (Dec., 2002), pp. 929-966


Slide27 l.jpg


Problem with parker klein l.jpg
Problem with Parker-Klein to 640 million bushels

  • In 1839 not much data, so the western region is defined as anything west of Ohio

  • Do not have data on hours per acres for west in 1839

  • Assume no change


Slide32 l.jpg


Climate is very different in these areas l.jpg
Climate is very different in these areas wheat to be grown in these region


Need new varieties of wheat l.jpg
Need new varieties of wheat wheat to be grown in these region

  • To with stand different climate

  • Also to with stand disease

    • Curse of the Red Queen

    • Rust

      • Problems as early as late 1600s

    • Loss 10-15 % in normal year, could be as high as 30% in epidemic year

    • Insects like the Hessian Fly

    • Needed to be able to plant wheat earlier


Wheat varieties l.jpg
Wheat varieties wheat to be grown in these region

Evidence for lots experimentation.

Most varieties grown in 1920 are new


Source of new varieties l.jpg
Source of New Varieties wheat to be grown in these region

  • Seed companies

  • US and State Departments of Agriculture