Agricultural History Review, Volume 58 Part 1 (2010), p. 150

When one thinks of authorities on agriculture, one does not normally think of economists. This is particularly true in the contexts of biological innovations and agrarian history. Thus, this book is a most pleasant surprise, and an important contribution to the literature on agricultural development. Indeed, a book on this topic written by someone other than economists would not be as convincing. Development, after all, regardless of how one defines it, is an elaborate variation of change, and the calculus of change is economics.

The premise of this book is as simple as it is brilliant. For nearly 70 years the prevailing thought has been that, until the 1930s, American agricultural development was a function of farmers investing solely in labour-saving mechanical technologies, the so-called induced innovation hypothesis. Now, Olmstead and Rhode demonstrate conclusively that: (a) this notion is economically untenable; and (b) that biological innovations were not only common, but were the principal factor underlying development.

Cyrus McCormick and Eli Whitney are household names thanks to their technological accomplishments. Long overlooked, but deserving equal credit are scores of figures such as Wendelin Grimm and Walter Burling who spent lifetimes developing varieties of alfalfa and cotton respectively. Indeed, the varieties of maize, wheat, cotton, tobacco, and fruits grown in 1900 were markedly different from the varieties cultivated in 1800. Chapters 2, 3, and 7, deal in turn with wheat, maize, and tobacco. Cotton merits three chapters; four covers its becoming ‘King’, chapter 5 focuses on its demise due to the boll weevil, and chapter 6 discusses its revival in the twentieth century. California is the topic of chapter 8 which is fascinating in that despite the diversity of that state’s crops, similar trends prevail. The role of animals, particularly their link with crops is discussed in chapter 9. Sheep, swine, and beef cattle are dealt with in chapter 10, with dairying being the topic of chapter 11. In sum, and without belabouring the details, there is something for everyone concerned with a specific crop plant or farm animal in this book. Indeed, more than 300 pages are devoted to empirical evidence that convincingly and overwhelmingly supports this volume’s simple and straightforward premise.

While chapters 2 through 11 provide the necessary substance, chapters 1, 12, and 13 are of critical importance as they deal with theory. The first chapter introduces the argument by dispelling the long-subscribed-to myth that during the nineteenth century, rational farmers invested in labour-saving because, due the price of land falling relative to the wage rate, labour was a scarce factor of production. Much like the agricultural economist Ester Boserup, who overturned the ideas of Malthus by recognizing supply as a function of demand, Olmstead and Rhode point out that throughout the nineteenth century ‘the price of land relative to wages was rising not falling’ (p.8).

Chapter 12 is a most welcome essay as it deals with draft power. The economics of the shift from oxen to equines, mules and horses, and the tractor as a land-saving innovation are all discussed masterfully. A refreshingly insightful and explicit recognition, and one that is typically overlooked if not ignored outright, is that animals are both biological and technological creatures. Any calculation of their labour- or land-saving attributes, therefore, is flawed if both roles are not factored into the equation. This chapter also points out that farms and farming regions became increasingly specialized (in part because of environmental conditions), and, as they did, they became more and more dependent on others for various inputs.

The concluding chapter illustrates that yet another factor was important in American agricultural history: foreign introductions. Many American crops and their numerous varieties are quite recent arrivals. Finally, the closing note of this book sums up the death of the induced innovation hypothesis. Unlike most scholarly works that offer an alternative perspective on an issue, this book is neither demeaning nor denigrating. On the contrary, it is compassionate and grateful for the many years of intellectual service of the hypothesis. The model this book presents should have an equally long and productive academic life. Indeed, the book’s opening section, ‘Advanced praise’ (p.i), begins with what is essentially the imprimatur of Vernon W.Ruttan, one of the long-time and premier advocates of the opposite perspective.