Sharecropping

Not to be confused with Cropsharing.

Sharecropping is a legal arrangement with regard to agricultural land in which a landowner allows a tenant to use the land in return for a share of the crops produced on that land.

Sharecropping has a long history and there are a wide range of different situations and types of agreements that have used a form of the system. Some are governed by tradition, and others by law. The French métayage, the Catalan masoveria, the Castilian mediero, the Slavic połownictwo and izdolshchina, the Italian mezzadria, and the Islamic system of muzara‘a (المزارعة), are examples of legal systems that have supported sharecropping.

Overview

 

A Farm Security Administration photo of a cropper family chopping the weeds from cotton near White Plains, in Georgia, US (1941)

Sharecropping has benefits and costs for both the owners and the tenant. Under a sharecropping system, the landowner provided a share of land to be worked by the sharecropper, and usually provided other necessities such as housing, tools, seed, or working animals.^[1] Local merchants usually provided food and other supplies to the sharecropper on credit. In exchange for the land and supplies, the cropper would pay the owner a share of the crop at the end of the season, typically one-half to two-thirds. The cropper used his share to pay off his debt to the merchant.^[2] If there was any cash left over, the cropper kept it—but if his share came to less than what he owed, he remained in debt.

Farmers who farmed land belonging to others but owned their own mule and plow were called tenant farmers; they owed the landowner a smaller share of their crops, as the landowner did not have to provide them with as much in the way of supplies.

In this system, the landowner encourages the cropper to remain on the land, solving the harvest rush problem.^{[clarification needed]} Since the cropper pays in shares or portions of his harvest, owners and croppers both share the risks and benefits of harvests being large or small and of prices being high or low. Because both parties benefit from larger harvests, tenants have an incentive to work harder and invest in better methods than, for example, in a slave plantation system. However, by dividing the working force into many individual workers, large farms do not benefit from economies of scale.^{[citation needed]} Though the arrangement protected sharecroppers from the negative effects of a bad crop, many sharecroppers (both white and black) remained quite poor.

Advantages

 

The commissary or company store for sharecroppers at Lake Providence, Louisiana, as it appeared in the 19th century

Sociologist Jeffery M. Paige made a distinction between centralized sharecropping found on cotton plantations and the decentralized sharecropping with other crops. The former is characterized by long lasting tenure. Tenants are tied to the landlord through the plantation store. This form of tenure tends to be replaced by paid salaries as markets penetrate. Decentralized sharecropping involves virtually no role for the landlord: plots are scattered, peasants manage their own labor and the landowners do not manufacture the crops. This form of tenure becomes more common when markets penetrate.^[3]

Some economists have argued that sharecropping is not as exploitative as it is often perceived. John Heath and Hans P. Binswanger, contend that "evidence from around the world suggests that sharecropping is often a way for differently endowed enterprises to pool resources to mutual benefit, overcoming credit restraints and helping to manage risk."^[4]

Sharecropping agreements can be made fairly, as a form of tenant farming or sharefarming that has a variable rental payment, paid in arrears. There are three different types of contracts.^[5]

1. Workers can rent plots of land from the owner for a certain sum and keep the whole crop.
2. Workers work on the land and earn a fixed wage from the land owner but keep some of the crop.
3. No money changes hands but the worker and land owner each keep a share of the crop.

It also gave sharecroppers a vested interest in the land, incentivizing hard work and care. American plantations were, however, wary of this interest, as they felt that would lead to African Americans demanding rights of partnership. Many black laborers denied the unilateral authority that landowners hoped to achieve, further complicating relations between landowners and sharecroppers.^[6]

Landlords opt for sharecropping to avoid the administrative costs and shirking that occurs on plantations and haciendas. It is preferred to cash tenancy because cash tenants take all the risks, and any harvest failure will hurt them and not the landlord. Therefore, they tend to demand lower rents than sharecroppers.^[7]

Another possible benefit to sharecropping is that it enables women to have access to arable land, albeit not as owners, in places where ownership rights are vested only in men.^[8]

Disadvantages

The practice was harmful to tenants with many cases of high interest rates, unpredictable harvests, and unscrupulous landlords and merchants often keeping tenant farm families severely indebted. The debt was often compounded year on year leaving the cropper vulnerable to intimidation and shortchanging.^[9] Nevertheless, it appeared to be inevitable, with no serious alternative unless the croppers left agriculture.^[10][11]

A new system of credit, the crop lien, became closely associated with sharecropping. Under this system, a planter or merchant extended a line of credit to the sharecropper while taking the year's crop as collateral. The sharecropper could then draw food and supplies all year long. When the crop was harvested, the planter or merchants who held the lien sold the harvest for the sharecropper and settled the debt.

Sharecropping has more than a passing similarity to serfdom or indenture, particularly where associated with large debts at a plantation store that effectively ties down the workers and their family to the land. It has therefore been seen as an issue of land reform in contexts such as the Mexican Revolution.

Regions

Historically, sharecropping occurred extensively in Scotland, Ireland and colonial Africa. Use of the sharecropper system has also been identified in England (as the practice of "farming to halves").^[12] It was widely used in the Southern United States during the Reconstruction era (1865–1877) that followed the American Civil War, which was economically devastating to the southern states.^[13] It is still used in many rural poor areas of the world today, notably in Pakistan, India, and Bangladesh.^[14][15][16]

Africa

In settler colonies of colonial Africa, sharecropping was a feature of the agricultural life. White farmers, who owned most of the land, were frequently unable to work the whole of their farm for lack of capital. They, therefore, had African farmers to work the excess on a sharecropping basis. In South Africa the 1913 Natives' Land Act^[17] outlawed the ownership of land by Africans in areas designated for white ownership and effectively reduced the status of most sharecroppers to tenant farmers and then to farm laborers. In the 1960s, generous subsidies to white farmers meant that most farmers could afford to work their entire farms, and sharecropping faded out.

The arrangement has reappeared in other African countries in modern times, including Ghana^[18] and Zimbabwe.^[19]

Economic historian Pius S. Nyambara argued that Eurocentric historiographical devices such as 'feudalism' or 'slavery' often qualified by weak prefixes like 'semi-' or 'quasi-' are not helpful in understanding the antecedents and functions of sharecropping in Africa.^[19]

United States

 

Sharecroppers on the roadside after they were evicted for membership in the Southern Tenant Farmers Union (January 1936)

Further information: Black land loss in the United States, African-American history of agriculture in the United States, and Jim Crow economy

Prior to the Civil War, sharecropping is known to have existed in Mississippi and is believed to have been in place in Tennessee.^[20][21] However, it was not until the economic upheaval caused by the American Civil War and the end of slavery during and after Reconstruction that it became widespread in the South.^[22][13] It is theorized that sharecropping in the United States originated in the Natchez District, roughly centered in Adams County, Mississippi with its county seat, Natchez.^[23]

After the war, plantations and other lands throughout the South were seized by the federal government. In January 1865, General William T. Sherman issued Special Field Orders No. 15, which announced that he would temporarily grant newly freed families 40 acres of this seized land on the islands and coastal regions of Georgia. Many believed that this policy would be extended to all former slaves and their families as repayment for their treatment at the end of the war. In the summer of 1865, President Andrew Johnson, as one of the first acts of Reconstruction, instead ordered all land under federal control be returned to the owners from whom it had been seized.

 

An early 20th century Texas sharecropper's home diorama at the Audie Murphy American Cotton Museum, in Greenville, Texas 2015

Southern landowners thus found themselves with a great deal of land, but no liquid assets to pay for labor. Many former slaves, now called freedmen, having no land or other assets of their own, needed to work to support their families. A sharecropping system centered on cotton, a major cash crop, developed as a result. Large plantations were subdivided into plots that could be worked by sharecroppers. Initially, sharecroppers in the American South were almost all black former slaves, but eventually cash-strapped indigent white farmers were integrated into the system.^[2][24] During Reconstruction, the federal Freedmen's Bureau ordered the arrangements for freedmen and wrote and enforced their contracts.^[25]

American sharecroppers worked a section of the plantation independently, usually growing cotton, tobacco, rice, sugar, and other cash crops, and received half of the parcel's output.^[26][27] Sharecroppers also often received their farming tools and all other goods from the landowner they were contracted with.^[1] Landowners dictated decisions relating to the crop mix, and sharecroppers were often in agreements to sell their portion of the crop back to the landowner, thus being subjected to manipulated prices.^[6] In addition to this, landowners, threatening to not renew the lease at the end of the growing season, were able to apply pressure to their tenants.^[6] Sharecropping often proved economically problematic, as the landowners held significant economic control.^[28]

 

Cotton sharecroppers, Hale County, Alabama, 1936

In the Reconstruction Era, sharecropping was one of few options for penniless freedmen to support themselves and their families. Other solutions included the crop-lien system (where the farmer was extended credit for seed and other supplies by the merchant), a rent labor system (where the former slave rents his land but keeps his entire crop), and the wage system (worker earns a fixed wage, but keeps none of their crop). Sharecropping was by far the most economically efficient, as it provided incentives for workers to produce a bigger harvest. It was a stage beyond simple hired labor because the sharecropper had an annual contract.^[25] Sharecropping as historically practiced in the American South is considered more economically productive than the gang system of slave plantations, though less efficient than modern agricultural techniques.^[29]

 

Sharecropper's cabin displayed at Louisiana State Cotton Museum in Lake Providence, Louisiana (2013 photo)

Sharecropping continued to be a significant institution in many states for decades following the Civil War. By the early 1930s, there were 5.5 million white tenant farmers, sharecroppers, and mixed cropping/laborers in the United States; and 3 million Blacks.^[30][31] In Tennessee, sharecroppers operated approximately one-third of all farm units in the state in the 1930s, with white people making up two thirds or more of the sharecroppers.^[21] In Mississippi, by 1900, 36% of all white farmers were tenants or sharecroppers, while 85% of black farmers were.^[20] In Georgia, fewer than 16,000 farms were operated by black owners in 1910, while, at the same time, African-Americans managed 106,738 farms as tenants.^[32]

Around this time, sharecroppers began to form unions protesting against poor treatment, beginning in Tallapoosa County, Alabama in 1931, and Arkansas in 1934. Membership in the Southern Tenant Farmers Union included both blacks and poor whites, who used meetings, protests, and labor strikes to push for better treatment. The success of these actions frightened and enraged landlords, who responded with aggressive tactics.^[33] Landless farmers who fought the sharecropping system were socially denounced, harassed by legal and illegal means, and physically attacked by officials, landlords' agents, or in extreme cases, angry mobs.^[34] Sharecroppers' strikes in Arkansas and the Missouri Bootheel, the 1939 Missouri Sharecroppers' Strike, were documented in the newsreel Oh Freedom After While.^[35] The plight of a sharecropper was addressed in the song Sharecropper's Blues recorded by Charlie Barnet and His Orchestra in 1944.^[36]

 

Sharecroppers' chapel at Cotton Museum in Lake Providence

The sharecropping system in the U.S. increased during the Great Depression with the creation of tenant farmers following the failure of many small farms throughout the Dustbowl. Traditional sharecropping declined after mechanization of farm work became economical beginning in the late 1930s and early 1940s.^[21][37] As a result, many sharecroppers were forced off the farms, and migrated to cities to work in factories, or became migrant workers in the Western United States during World War II. By the end of the 1960s, sharecropping had disappeared in the United States.^{[citation needed]}

Sharecropping and socioeconomic status

About two-thirds of sharecroppers were white, the rest black. Sharecroppers, the poorest of the poor, organized for better conditions. The racially integrated Southern Tenant Farmers Union made gains for sharecroppers in the 1930s. Sharecropping had diminished in the 1940s due to the Great Depression, farm mechanization, and other factors.^[38]

Economic theories of share tenancy

 

A sharecropper family in Walker County, Alabama (c. 1937)

The theory of share tenancy was long dominated by Alfred Marshall's famous footnote in Book VI, Chapter X.14 of Principles^[39] where he illustrated the inefficiency of agricultural share-contracting. Steven N.S. Cheung (1969),^[40] challenged this view, showing that with sufficient competition and in the absence of transaction costs, share tenancy will be equivalent to competitive labor markets and therefore efficient.^[41]

He also showed that in the presence of transaction costs, share-contracting may be preferred to either wage contracts or rent contracts—due to the mitigation of labor shirking and the provision of risk sharing. Joseph Stiglitz (1974,^[42] 1988),^[43] suggested that if share tenancy is only a labor contract, then it is only pairwise-efficient and that land-to-the-tiller reform would improve social efficiency by removing the necessity for labor contracts in the first place.

Reid (1973),^[44] Murrel (1983),^[45] Roumasset (1995)^[46] and Allen and Lueck (2004)^[47] provided transaction cost theories of share-contracting, wherein tenancy is more of a partnership than a labor contract and both landlord and tenant provide multiple inputs. It has also been argued that the sharecropping institution can be explained by factors such as informational asymmetry (Hallagan, 1978;^[48] Allen, 1982;^[49] Muthoo, 1998),^[50] moral hazard (Reid, 1976;^[51] Eswaran and Kotwal, 1985;^[52] Ghatak and Pandey, 2000),^[53] intertemporal discounting (Roy and Serfes, 2001),^[54] price fluctuations (Sen, 2011)^[55] or limited liability (Shetty, 1988;^[56] Basu, 1992;^[57] Sengupta, 1997;^[58] Ray and Singh, 2001).^[59]

See also

• Coolie
• Convict lease
• Peonage
• Rent-seeking
• Rural tenancy
• Sharefarming
• Sharemilking
• Tenant farmer
• Wage slavery

References

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2. Ronald L. F. Davis "The U. S. Army and the Origins of Sharecropping in the Natchez District—A Case Study" The Journal of Negro History, Vol. 62, No.1 (January 1977), pp. 60–80 in JSTOR
3. Jeffery Paige, Agrarian Revolution, page 373
4. Heath, John & Binswanger, Hans P. (October 1998). "Chapter 3: Policy-Induced Effects of Natural Resource Degradation: The Case of Colombia" (PDF). In Lutz, Ernest (ed.). Agriculture and the Environment: Perspectives on Sustainable Rural Development. Washington, DC: The World Bank. pp. 32. ISBN 0-8213-4249-5. Retrieved 2011-04-01.
5. Arthur F. Raper and Ira De A. Reid, Sharecroppers All (1941); Gavin Wright, Old South, New South: Revolutions in the Southern Economy since the Civil War (1986).
6. Royce, Edward (1993). "The Rise of Southern Sharecropping". In Royce, Edward (ed.). The Origins of Southern Sharecropping. Temple University Press. pp. 181–222. ISBN 9781566390699. JSTOR j.ctt14bt3nz.9.
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16. Byres, T. J. (2005-08-02). Sharecropping and Sharecroppers. Routledge. ISBN 978-1-135-78003-6.
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18. Leonard, R. and Longbottom, J., Land Tenure Lexicon: A glossary of terms from English and French speaking West Africa^{[permanent dead link]} International Institute for Environment and Development (IIED), London, 2000
19. Pius S. Nyambara (2003). (PDF). Archived from the original (PDF) on 2006-03-26. Retrieved 2006-05-18., Centre for Applied Social Sciences, University of Zimbabwe and Land Tenure Center, University of Wisconsin–Madison, March 2003 (200Kb PDF)
20. Charles Bolton, "Farmers Without Land: The Plight of White Tenant Farmers and Sharecroppers 2016-03-04 at the Wayback Machine", Mississippi History Now, March 2004.
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22. Sharon Monteith, ed. (2013). The Cambridge Companion to the Literature of the American South. Cambridge U.P. p. 94. ISBN 9781107036789.
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30. The Rockabilly Legends; They Called It Rockabilly Long Before they Called It Rock and Roll by Jerry Naylor and Steve Halliday DVD
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32. Geisen, James C. (January 26, 2007). "Sharecropping". New Georgia Encyclopedia. Retrieved April 23, 2019.
33. The Devil's Music: A History of the Blues By Giles Oakley Edition: 2. Da Capo Press, 1997, p. 185. ISBN 0-306-80743-2, ISBN 978-0-306-80743-5
34. Sharecroppers All. Arthur F. Raper and Ira De A. Reid. Chapell Hill 1941. The University of North Carolina Press, 2011, ISBN 978-0-8078-9817-8
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41. Formalized in Roumasset, James (1979). "Sharecropping, Production Externalities and the Theory of Contracts". American Journal of Agricultural Economics. 61 (4): 640–647. doi:10.2307/1239911. JSTOR 1239911.
42. Stiglitz, Joseph (1974). "Incentives and Risk Sharing in Sharecropping" (PDF). The Review of Economic Studies. 41 (2): 219–255 j. doi:10.2307/2296714. JSTOR 2296714.
43. Stiglitz, Joseph (1988). "Principal And Agent". Princeton, Woodrow Wilson School – Discussion Paper (12). Retrieved 2009-06-14.
44. Reid, Joseph D. Jr. (March 1973). "Sharecropping As An Understandable Market Response: The Post-Bellum South". The Journal of Economic History. 33 (1): 106–130. doi:10.1017/S0022050700076476. JSTOR 2117145. S2CID 155056632.
45. Murrell, Peter (Spring 1983). "The Economics of Sharing: A Transactions Cost Analysis of Contractual Choice in Farming". The Bell Journal of Economics. 14 (1): 283–293. doi:10.2307/3003555. JSTOR 3003555.
46. Roumasset, James (March 1995). "The nature of the agricultural firm". Journal of Economic Behavior & Organization. 26 (2): 161–177. doi:10.1016/0167-2681(94)00007-2.
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50. Muthoo, Abhinay (1998). "Renegotiation-proof tenurial contracts as screening mechanisms". Journal of Development Economics. 56: 1–26. doi:10.1016/S0304-3878(98)00050-9.
51. Reid, Joseph D. Jr. (1976). "Sharecropping and agricultural uncertainty". Economic Development and Cultural Change. 24 (3): 549–576. doi:10.1086/450897. JSTOR 1153005. S2CID 154402121.
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Further reading

• Adams, Jane; Gorton, D. (2009). "This Land Ain't My Land: The Eviction of Sharecroppers by the Farm Security Administration". Agricultural History. 83 (3): 323–51. doi:10.3098/ah.2009.83.3.323.
• Agee, James; Evans, Walker (1941). Let Us Now Praise Famous Men: Three Tenant Families. Boston: Houghton Mifflin.
• Allen, D. W.; Lueck, D. (1992). "Contract Choice in Modern Agriculture: Cash Rent versus Cropshare". Journal of Law and Economics. 35 (2): 397–426. doi:10.1086/467260. S2CID 153707520.
• Barbagallo, Tricia (June 1, 2005). (PDF). Archived from the original (PDF) on November 13, 2013. Retrieved 2008-06-04.
• Davis, Ronald L. F. (1982). Good and Faithful Labor: From Slavery to Sharecropping in the Natchez District, 1860–1890. Westport, Connecticut: Greenwood Press. ISBN 0-313-23134-6.
• Ferleger, Louis (1993). "Sharecropping Contracts in the Late-Nineteenth-Century South". Agricultural History. 67 (3): 31–46. JSTOR 3744228.
• Garrett, Martin A.; Xu, Zhenhui (2003). "The Efficiency of Sharecropping: Evidence from the Postbellum South". Southern Economic Journal. 69 (3): 578–595. doi:10.1002/j.2325-8012.2003.tb00514.x.
• Grubbs, Donald H. (1971). Cry from the Cotton: The Southern Tenant Farmer's Union and the New Deal. University of North Carolina Press. ISBN 0-8078-1156-4.
• Hurt, R. Douglas Hurt (2003). African American Life in the Rural South, 1900–1950. University of Missouri Press. ISBN 0-8262-1471-1.
• Liebowitz, Jonathan J. (1989). "Tenants, Sharecroppers, and the French Agricultural Depression of the Late Nineteenth Century". Journal of Interdisciplinary History. 19 (3): 429–445. doi:10.2307/204363. JSTOR 204363.
• Reid, Joseph D. Jr. (1975). "Sharecropping in History and Theory". Agricultural History. 49 (2): 426–440. JSTOR 3741281.
• Roll, Jarod (March 16, 2010). . Southern Spaces. Archived from the original on January 10, 2011.
• Shaban, R. A. (1987). "Testing Between Competing Models of Sharecropping". Journal of Political Economy. 95 (5): 893–920. doi:10.1086/261495. S2CID 55141070.
• Singh, N. (1989). "Theories of Sharecropping". In Bardhan, P. (ed.). The Economic Theory of Agrarian Institutions. Clarendon Press. pp. 33–72. ISBN 0-19-828619-8.
• Southworth, Caleb (2002). "Aid to Sharecroppers: How Agrarian Class Structure and Tenant-Farmer Politics Influenced Federal Relief in the South, 1933–1935". Social Science History. 26 (1): 33–70.
• Stiglitz, J. (1974). "Incentives and Risk Sharing in Share Cropping" (PDF). Review of Economic Studies. 41 (2): 219–255. doi:10.2307/2296714. JSTOR 2296714.
• Turner, Howard A. (1937). "Farm Tenancy Distribution and Trends in the United States". Law and Contemporary Problems. 4 (4): 424–433. doi:10.2307/1189524. JSTOR 1189524.
• Virts, Nancy (1991). "The Efficiency of Southern Tenant Plantations, 1900–1945". Journal of Economic History. 51 (2): 385–395. doi:10.1017/S0022050700039012. JSTOR 2122582. S2CID 154991172.
• Wayne, Michael (1983). The Reshaping of Plantation Society: The Natchez District, 1860–1880. Baton Rouge, Louisiana: Louisiana State University Press. ISBN 0-8071-1050-7.

External links

•   Media related to Sharecropping at Wikimedia Commons
• King Cotton's Slaves, 1936 newsreel by The March of Time about landless Southern farmers