International Demand Helps Shape Colonial Farming
Before 1720, agriculture in the mid-Atlantic colonies was largely based on small-scale farming operations. Many colonists relied on farming not only to feed their families and communities but also to generate products that could be exchanged for manufactured goods from overseas.
Corn and flour became important commodities in the region’s trade with the West Indies. Colonists used these agricultural products to help pay for imported manufactured goods, creating an early connection between Mid-Atlantic farms and international markets.
New York’s economy also benefited from international trade during this period. A thriving fur-pelt export business sent valuable pelts to European markets and contributed additional wealth to the region.
European Population Growth Drives Wheat Prices
The economic picture began to change significantly after 1720 as international demand for wheat increased.
A major population increase in Europe helped drive demand for food commodities, including wheat. As European populations grew, the need for additional grain supplies increased, creating stronger markets for wheat produced by farmers in the American colonies.
The resulting increase in demand had a direct effect on wheat prices. By 1770, a bushel of wheat cost approximately twice what it had cost in 1720.
That dramatic increase in value provided an important economic incentive for Mid-Atlantic farmers to expand wheat production. Agriculture was increasingly connected to international markets, with conditions and demand in Europe influencing opportunities for colonial farmers thousands of miles away.
Agriculture Becomes an Important Colonial Export Industry
The growth of the wheat market illustrates how international trade was already influencing American agriculture well before the United States became an independent nation.
What began primarily as small-scale farming gradually developed into a more commercially oriented agricultural economy. Farmers in the Mid-Atlantic region were positioned to take advantage of growing international demand, particularly for wheat and other agricultural commodities.
The history of wheat production during this period also demonstrates an important principle that continues to influence agriculture today: changes in population, demand and international markets can have a significant impact on farm prices and production decisions.
American Agriculture History Minute
This historical look at colonial agriculture comes from Mark Oppold’s American Agriculture History Minute.
I’m Mark Oppold.