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A plantation economy is an economy based on
agricultural Agriculture or farming is the practice of cultivating plants and livestock. Agriculture was the key development in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that enabled peopl ...
mass production Mass production, also known as flow production or continuous production, is the production of substantial amounts of standardized products in a constant flow, including and especially on assembly lines. Together with job production and ba ...
, usually of a few
commodity In economics, a commodity is an economic good, usually a resource, that has full or substantial fungibility: that is, the market treats instances of the good as equivalent or nearly so with no regard to who produced them. The price of a co ...
crops, grown on large farms worked by laborers or slaves. The properties are called
plantation A plantation is an agricultural estate, generally centered on a plantation house, meant for farming that specializes in cash crops, usually mainly planted with a single crop, with perhaps ancillary areas for vegetables for eating and so on. Th ...
s. Plantation economies rely on the
export An export in international trade is a good produced in one country that is sold into another country or a service provided in one country for a national or resident of another country. The seller of such goods or the service provider is a ...
of
cash crop A cash crop or profit crop is an agricultural crop which is grown to sell for profit. It is typically purchased by parties separate from a farm. The term is used to differentiate marketed crops from staple crop (or "subsistence crop") in subsist ...
s as a source of income. Prominent crops included
cotton Cotton is a soft, fluffy staple fiber that grows in a boll, or protective case, around the seeds of the cotton plants of the genus '' Gossypium'' in the mallow family Malvaceae. The fiber is almost pure cellulose, and can contain minor pe ...
,
rubber Rubber, also called India rubber, latex, Amazonian rubber, ''caucho'', or ''caoutchouc'', as initially produced, consists of polymers of the organic compound isoprene, with minor impurities of other organic compounds. Thailand, Malaysia, and ...
,
sugar cane Sugarcane or sugar cane is a species of (often hybrid) tall, perennial grass (in the genus '' Saccharum'', tribe Andropogoneae) that is used for sugar production. The plants are 2–6 m (6–20 ft) tall with stout, jointed, fibrous stalk ...
,
tobacco Tobacco is the common name of several plants in the genus '' Nicotiana'' of the family Solanaceae, and the general term for any product prepared from the cured leaves of these plants. More than 70 species of tobacco are known, but the ...
,
fig The fig is the edible fruit of ''Ficus carica'', a species of small tree in the flowering plant family Moraceae. Native to the Mediterranean and western Asia, it has been cultivated since ancient times and is now widely grown throughout the world ...
s,
rice Rice is the seed of the grass species '' Oryza sativa'' (Asian rice) or less commonly ''Oryza glaberrima'' (African rice). The name wild rice is usually used for species of the genera '' Zizania'' and '' Porteresia'', both wild and domesticat ...
, kapok, sisal, and species in the genus '' Indigofera'', used to produce
indigo dye Indigo dye is an organic compound with a distinctive blue color. Historically, indigo was a natural dye extracted from the leaves of some plants of the ''Indigofera'' genus, in particular '' Indigofera tinctoria''; dye-bearing ''Indigofera'' pl ...
. The longer a crop's
harvest Harvesting is the process of gathering a ripe crop from the fields. Reaping is the cutting of grain or pulse for harvest, typically using a scythe, sickle, or reaper. On smaller farms with minimal mechanization, harvesting is the most l ...
period, the more efficient plantations become.
Economies of scale In microeconomics, economies of scale are the cost advantages that enterprises obtain due to their scale of operation, and are typically measured by the amount of output produced per unit of time. A decrease in cost per unit of output enables ...
are also achieved when the distance to market is long. Plantation crops usually need processing immediately after harvesting. Sugarcane, tea, sisal, and
palm oil Palm oil is an edible vegetable oil derived from the mesocarp (reddish pulp) of the fruit of the oil palms. The oil is used in food manufacturing, in beauty products, and as biofuel. Palm oil accounted for about 33% of global oils produced fr ...
are most suited to plantations, while coconuts, rubber, and cotton are suitable to a lesser extent.


Conditions for formation

Plantation economies are factory-like, industrialised and centralised forms of agriculture, owned by large corporations or affluent owners. Under normal circumstances, plantation economies are not as efficient as small farm holdings, since there is immense difficulty in proper supervision of labour over a large land area. When there are large distances between the plantations and their markets, processing can reduce the bulk of the crop and lower shipping costs. Large plantations produce large quantities of a good are able to achieve
economies of scale In microeconomics, economies of scale are the cost advantages that enterprises obtain due to their scale of operation, and are typically measured by the amount of output produced per unit of time. A decrease in cost per unit of output enables ...
for expensive processing machinery, as the per unit cost of processing is greatly diminished. This economy of scale can be achieved best with tropical crops that are harvested continuously through the year, fully utilising the processing machinery. Examples of crops that are suitable to be processed are sugar, sisal, palm oil, and tea.


North American plantations

In the
Thirteen Colonies The Thirteen Colonies, also known as the Thirteen British Colonies, the Thirteen American Colonies, or later as the United Colonies, were a group of British colonies on the Atlantic coast of North America. Founded in the 17th and 18th centu ...
, plantations were concentrated in the South. These colonies included Maryland, Virginia, North Carolina, South Carolina, and Georgia. They had good
soil Soil, also commonly referred to as earth or dirt, is a mixture of organic matter, minerals, gases, liquids, and organisms that together support life. Some scientific definitions distinguish ''dirt'' from ''soil'' by restricting the former ...
and long growing seasons, ideal for crops such as
rice Rice is the seed of the grass species '' Oryza sativa'' (Asian rice) or less commonly ''Oryza glaberrima'' (African rice). The name wild rice is usually used for species of the genera '' Zizania'' and '' Porteresia'', both wild and domesticat ...
and
tobacco Tobacco is the common name of several plants in the genus '' Nicotiana'' of the family Solanaceae, and the general term for any product prepared from the cured leaves of these plants. More than 70 species of tobacco are known, but the ...
. The existence of many
waterway A waterway is any navigable body of water. Broad distinctions are useful to avoid ambiguity, and disambiguation will be of varying importance depending on the nuance of the equivalent word in other languages. A first distinction is necessary ...
s in the region made transportation easier. Each colony specialized in one or two crops, with Virginia standing out in tobacco production.The Southern Colonies: Plantations and Slavery, by Kalpesh Khanna Kapurtalawla


Slavery

Planters Planters Nut & Chocolate Company is an American snack food company now owned by Hormel Foods. Planters is best known for its processed nuts and for the Mr. Peanut icon that symbolizes them. Mr. Peanut was created by grade schooler Antonio Gentil ...
embraced the use of
slaves Slavery and enslavement are both the state and the condition of being a slave—someone forbidden to quit one's service for an enslaver, and who is treated by the enslaver as property. Slavery typically involves slaves being made to perf ...
mainly because indentured labor became expensive. Some indentured servants were also leaving to start their own farms as land was widely available. Colonists tried to use Native Americans for labor, but they were susceptible to European diseases and died in large numbers. The plantation owners then turned to enslaved
Africans African or Africans may refer to: * Anything from or pertaining to the continent of Africa: ** People who are native to Africa, descendants of natives of Africa, or individuals who trace their ancestry to indigenous inhabitants of Africa *** Ethn ...
for labor. In 1665, there were fewer than 500 Africans in Virginia but by 1750, 85 percent of the 235,000 slaves lived in the Southern colonies, Virginia included. Africans made up 40 percent of the South’s population. According to the 1840 United States Census, one out of every four families in Virginia owned slaves. There were over 100 plantation owners who owned over 100 slaves. The number of slaves in the 15 States was just shy of 4 million in a total population 12.4 million and the percentage was 32% of the population. *Number of slaves in the Lower South: 2,312,352 (47% of total population) 4,919 million. *Number of slaves in the Upper South: 1,208,758 (29% of total population) 4,165 million. *Number of slaves in the Border States: 432,586 (13% of total population) 3,323 million. Fewer than one-third of Southern families owned slaves at the peak of slavery prior to the
Civil War A civil war or intrastate war is a war between organized groups within the same state (or country). The aim of one side may be to take control of the country or a region, to achieve independence for a region, or to change government polici ...
. In
Mississippi Mississippi () is a state in the Southeastern region of the United States, bordered to the north by Tennessee; to the east by Alabama; to the south by the Gulf of Mexico; to the southwest by Louisiana; and to the northwest by Arkansas. Miss ...
and
South Carolina )''Animis opibusque parati'' ( for, , Latin, Prepared in mind and resources, links=no) , anthem = " Carolina";" South Carolina On My Mind" , Former = Province of South Carolina , seat = Columbia , LargestCity = Charleston , LargestMetro = ...
the figure approached one half. The total number of slave owners was 385,000 (including, in
Louisiana Louisiana , group=pronunciation (French: ''La Louisiane'') is a state in the Deep South and South Central regions of the United States. It is the 20th-smallest by area and the 25th most populous of the 50 U.S. states. Louisiana is bord ...
, some free African Americans), amounting to approximately 3.8% of the Southern and Border states population. On a plantation with more than 100 slaves, the capital value of the slaves was greater than the capital value of the land and farming implements. The first plantations occurred in the Caribbean islands, particularly, in the West Indies on the island of Hispaniola, where it was initiated by the Spaniards in the early 16th century. The plantation system was based on slave labor and it was marked by inhumane methods of exploitation. After being established in the Caribbean islands, the plantation system spread during the 16th,17th and 18th century to Mexico, Brazil, Britain’s southern Atlantic colonies in North America and Indonesia. All the plantation system had a form of slavery in its establishment, slaves were initially forced to be labors to the plantation system, these slaves were primarily native Indians, but the system was later extended to include slaves shipped from Africa. Indeed, the progress of the plantation system was accompanied by the rapid growth of the slave trade. The plantation system peaked in the first half of the 18th century, but later on, during the middle of 19th century, there was a significant increase in demand for cotton from European countries, which means there was a need for expanding the plantation in the southern parts of United States. This made the plantation system reach a profound crisis, until it was changed from being forcing slave labour to being mainly low-paid wage labors who contained a smaller proportion of forced labour. The monopolies were insured high profits from the sale of plantation products by having cheap labours, forced recruitment, peonage and debt servitude.


Atlantic slave trade

Enslaved Africans were transported from Africa by European slave traders to Europe's colonies in the Western Hemisphere. They were shipped from
port A port is a maritime facility comprising one or more wharves or loading areas, where ships load and discharge cargo and passengers. Although usually situated on a sea coast or estuary, ports can also be found far inland, such as H ...
s in
West Africa West Africa or Western Africa is the westernmost region of Africa. The United Nations defines Western Africa as the 16 countries of Benin, Burkina Faso, Cape Verde, The Gambia, Ghana, Guinea, Guinea-Bissau, Ivory Coast, Liberia, Mali ...
to the
New World The term ''New World'' is often used to mean the majority of Earth's Western Hemisphere, specifically the Americas."America." ''The Oxford Companion to the English Language'' (). McArthur, Tom, ed., 1992. New York: Oxford University Press, p. ...
. The journey from Africa across the Atlantic Ocean was called "the
middle passage The Middle Passage was the stage of the Atlantic slave trade in which millions of enslaved Africans were transported to the Americas as part of the triangular slave trade. Ships departed Europe for African markets with manufactured goods (first ...
", and was one of the three legs which comprised the
triangular trade Triangular trade or triangle trade is trade between three ports or regions. Triangular trade usually evolves when a region has export commodities that are not required in the region from which its major imports come. It has been used to offset ...
among the continents of
Europe Europe is a large peninsula conventionally considered a continent in its own right because of its great physical size and the weight of its history and traditions. Europe is also considered a Continent#Subcontinents, subcontinent of Eurasia ...
, the
Americas The Americas, which are sometimes collectively called America, are a landmass comprising the totality of North America, North and South America. The Americas make up most of the land in Earth's Western Hemisphere and comprise the New World. ...
, and
Africa Africa is the world's second-largest and second-most populous continent, after Asia in both cases. At about 30.3 million km2 (11.7 million square miles) including adjacent islands, it covers 6% of Earth's total surface area ...
. By some estimates, it is said that some ten million Africans were brought to the Americas. Only about 6% ended up in the North American colonies, while the majority were taken to the
Caribbean The Caribbean (, ) ( es, El Caribe; french: la Caraïbe; ht, Karayib; nl, De Caraïben) is a region of the Americas that consists of the Caribbean Sea, its islands (some surrounded by the Caribbean Sea and some bordering both the Caribbean ...
colonies and
South America South America is a continent entirely in the Western Hemisphere and mostly in the Southern Hemisphere, with a relatively small portion in the Northern Hemisphere at the northern tip of the continent. It can also be described as the sou ...
. A reason many did not make it to the colonies at all was disease and illness. Underneath the slave ship's decks, Africans were held chest-to-chest and could not do much moving. There was waste and urine throughout the hold; this caused the captives to get sick and to die from illnesses that could not be cured. As the plantation economy expanded, the slave trade grew to meet the growing demand for labor.


Industrial Revolution in Europe

Western Europe Western Europe is the western region of Europe. The region's countries and territories vary depending on context. The concept of "the West" appeared in Europe in juxtaposition to "the East" and originally applied to the ancient Mediterranean ...
was the final destination for the plantation produce. At this time, Europe was starting to industrialize, and it needed a lot of materials to manufacture goods. Being the power center of the world at the time, they exploited the New World and Africa to industrialize. Africa supplied slaves for the plantations; the New World produced
raw material A raw material, also known as a feedstock, unprocessed material, or primary commodity, is a basic material that is used to produce goods, finished goods, energy, or intermediate materials that are feedstock for future finished products. As feeds ...
for industries in Europe. Manufactured goods, of higher value, were then sold both to Africa and the New World. The system was largely run by European merchants


Sugar plantations

Sugar Sugar is the generic name for sweet-tasting, soluble carbohydrates, many of which are used in food. Simple sugars, also called monosaccharides, include glucose, fructose, and galactose. Compound sugars, also called disaccharides or do ...
has a long history as a plantation crop. Cultivation of sugar had to follow a precise scientific system to profit from the production. Sugar plantations everywhere were disproportionate consumers of labor, often enslaved, because of the high mortality of the plantation laborers. In Brazil, plantations were called ''
casas grandes Casas Grandes (Spanish for ''Great Houses''; also known as Paquimé) is a prehistoric archaeological site in the northern Mexican state of Chihuahua. Construction of the site is attributed to the Mogollon culture. Casas Grandes has been design ...
'' and suffered from similar issues. The
slaves Slavery and enslavement are both the state and the condition of being a slave—someone forbidden to quit one's service for an enslaver, and who is treated by the enslaver as property. Slavery typically involves slaves being made to perf ...
working the sugar plantation were caught in an unceasing rhythm of arduous labor year after year.
Sugarcane Sugarcane or sugar cane is a species of (often hybrid) tall, perennial grass (in the genus '' Saccharum'', tribe Andropogoneae) that is used for sugar production. The plants are 2–6 m (6–20 ft) tall with stout, jointed, fibrous stalk ...
is harvested about 18 months after planting and the plantations usually divided their land for efficiency. One plot was lying fallow, one plot was growing cane, and the final plot was being harvested. During the December–May
rainy season The rainy season is the time of year when most of a region's average annual rainfall occurs. Rainy Season may also refer to: * ''Rainy Season'' (short story), a 1989 short horror story by Stephen King * "Rainy Season", a 2018 song by Monni * '' ...
, slaves planted,
fertilized Fertilisation or fertilization (see spelling differences), also known as generative fertilisation, syngamy and impregnation, is the fusion of gametes to give rise to a new individual organism or offspring and initiate its development. Proc ...
with animal dung, and weeded. From January to June, they harvested the cane by chopping the plants off close to the ground, stripping the leaves and then cutting them into shorter strips to be bundled off to be sent to the
sugar cane mill A sugar cane mill is a factory that processes sugar cane to produce raw or white sugar. The term is also used to refer to the equipment that crushes the sticks of sugar cane to extract the juice. Processing There are a number of steps in pro ...
. In the mill, the cane was crushed using a three-roller mill. The juice from the crushing of the cane was then boiled or clarified until it crystallized into sugar. Some plantations also went a step further and
distilled Distillation, or classical distillation, is the process of separating the components or substances from a liquid mixture by using selective boiling and condensation, usually inside an apparatus known as a still. Dry distillation is the hea ...
the
molasses Molasses () is a viscous substance resulting from refining sugarcane or sugar beets into sugar. Molasses varies in the amount of sugar, method of extraction and age of the plant. Sugarcane molasses is primarily used to sweeten and flavour foods ...
, the liquid left after the sugar is boiled or clarified, to make rum. The sugar was then shipped back to
Europe Europe is a large peninsula conventionally considered a continent in its own right because of its great physical size and the weight of its history and traditions. Europe is also considered a Continent#Subcontinents, subcontinent of Eurasia ...
. For the slave laborer, the routine started all over again. With the 19th-century abolition of slavery, plantations continued to grow sugar cane, but
sugar beet A sugar beet is a plant whose root contains a high concentration of sucrose and which is grown commercially for sugar production. In plant breeding, it is known as the Altissima cultivar group of the common beet ('' Beta vulgaris''). Together ...
s, which can be grown in
temperate climate In geography, the temperate climates of Earth occur in the middle latitudes (23.5° to 66.5° N/S of Equator), which span between the tropics and the polar regions of Earth. These zones generally have wider temperature ranges throughout ...
s, increased their share of the sugar market.


Indigo plantations

Indigofera was a major crop cultivated during the 18th century, in
Venezuela Venezuela (; ), officially the Bolivarian Republic of Venezuela ( es, link=no, República Bolivariana de Venezuela), is a country on the northern coast of South America, consisting of a continental landmass and many islands and islets in th ...
,
Guatemala Guatemala ( ; ), officially the Republic of Guatemala ( es, República de Guatemala, links=no), is a country in Central America. It is bordered to the north and west by Mexico; to the northeast by Belize and the Caribbean; to the east by Hon ...
—and
Haiti Haiti (; ht, Ayiti ; French: ), officially the Republic of Haiti (); ) and formerly known as Hayti, is a country located on the island of Hispaniola in the Greater Antilles archipelago of the Caribbean Sea, east of Cuba and Jamaica, and s ...
until the slave rebellion against France that left them
embargo Economic sanctions are commercial and financial penalties applied by one or more countries against a targeted self-governing state, group, or individual. Economic sanctions are not necessarily imposed because of economic circumstances—they m ...
ed by Europe and
India India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the List of countries and dependencies by area, seventh-largest country by area, the List of countries and dependencies by population, second-most populous ...
in the 19th and 20th centuries. The indigo crop was grown for making blue
indigo dye Indigo dye is an organic compound with a distinctive blue color. Historically, indigo was a natural dye extracted from the leaves of some plants of the ''Indigofera'' genus, in particular '' Indigofera tinctoria''; dye-bearing ''Indigofera'' pl ...
in the pre-industrial age.
Mahatma Gandhi Mohandas Karamchand Gandhi (; ; 2 October 1869 – 30 January 1948), popularly known as Mahatma Gandhi, was an Indian lawyer, anti-colonial nationalist Quote: "... marks Gandhi as a hybrid cosmopolitan figure who transformed ... anti- ...
's investigation of indigo workers' claims of exploitation led to the passage of the Champaran Agrarian Bill in 1917 by the British colonial government.


Southeast Asia

In Southeast Asia British and Dutch colonies established plantations to produce agricultural commodity products including tea, pepper and other spices, palm oil, coffee, and rubber. Large scale agricultural production continues in many areas.


Currencies

The currency for the Georgia colony was the
pound sterling Sterling (abbreviation: stg; Other spelling styles, such as STG and Stg, are also seen. ISO code: GBP) is the currency of the United Kingdom and nine of its associated territories. The pound ( sign: £) is the main unit of sterling, and ...
, a gold coin or very light green bill with the national pound symbol. The currency is worth about one and one half U.S. dollar. The currency for the New York was at the time of the colony the New York pound. This currency was primarily used and made in the 1700s.


See also

* Banana republic *
History of commercial tobacco in the United States The history of commercial tobacco production in the United States dates back to the 17th century when the first commercial crop was planted. The industry originated in the production of tobacco for pipes and snuff. Different war efforts in ...
* History of sugar *
King Cotton "King Cotton" is a slogan that summarized the strategy used before the American Civil War (of 1861–1865) by secessionists in the southern states (the future Confederate States of America) to claim the feasibility of secession and to prove t ...
* Latifundium * Sugar plantations in the Caribbean *
Tropical agriculture Worldwide more human beings gain their livelihood from agriculture than any other endeavor; the majority are self-employed subsistence farmers living in the tropics. While growing food for local consumption is the core of tropical agriculture, ...


References

{{DEFAULTSORT:Plantation Economy Agricultural economics Economic systems History of Virginia Slavery in North America Plantations
Economy An economy is an area of the production, distribution and trade, as well as consumption of goods and services. In general, it is defined as a social domain that emphasize the practices, discourses, and material expressions associated with th ...