TY - JOUR AU - Libecap,Gary D. AU - Hansen,Zeynep Kocabiyik TI - "Rain Follows the Plow" and Dryfarming Doctrine: The Climate Information Problem and Homestead Failure in the Upper Great Plains, 1890-1925 JF - National Bureau of Economic Research Historical Working Paper Series VL - No. 127 PY - 2000 Y2 - June 2000 UR - http://www.nber.org/papers/h0127 L1 - http://www.nber.org/papers/h0127.pdf N1 - Author contact info: Gary D. Libecap Bren School of Environmental Science and Management and Economics Department University of California, Santa Barbara Bren Hall 4412 Santa Barbara, CA 93106-5131 Tel: 805-893-8611 Fax: 805-893-7612 E-Mail: glibecap@bren.ucsb.edu Zeynep K. Hansen College of Business and Economics Department of Economics Boise State University 1910 University Drive Boise, ID 83725-1620 Tel: 208/426-3314 Fax: 208/426-2071 E-Mail: zeynephansen@boisestate.edu AB - In the late 19th and early 20th centuries, the North American agricultural frontier moved for the first time into semi-arid regions where farming was vulnerable to drought. Farmers who migrated to the region had to adapt their crops, techniques, and farm sizes to better fit the environment. But there was very incomplete information for making these adjustments, and ultimately they were insufficient: too many small, dry land wheat farms were founded, only to be abandoned in the midst of drought. In this paper, we examine why homestead failure occurred in the Great Plains, by analyzing two episodes in western Kansas in 1893-94 and in eastern Montana in 1917-21. We focus on the weather information problem facing migrants to the region. We examine the learning process by which migrants mis-interpreted new rainfall information and failed to adequately perceive drought. Homesteaders had neither an analytical framework nor sufficient data for predicting fluctuations in rainfall. Knowledge of the climate was primitive and the underlying mechanisms triggering droughts were not understood. Long-term precipitation records did not exist. Homesteaders gambled on the continuation of previous wet periods due to a possible climate change because of cultivation, and on the optimistic opinions of dryfarming experts.' Dryfarming doctrine argued that moisture could be saved in the soil, allowing small wheat farms to endure any dry period. Accordingly, homesteaders discounted new information that indicated drought. The subsequent waves of homestead busts that swept the region during severe droughts were part of the adjustment toward agricultural techniques, crops, and farm sizes more appropriate for a semi-arid region. ER -