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The Dust Bowl: action and reaction between ecosystem and economy Alejandro Vidal Crespo Service Director, Market Strategies MONTHLY STRATEGY REPORT November 2014 Monthly Strategy Report. November 2014 The Dust Bowl: action and reaction between ecosystem and economy “In light of increasing concerns about environmental issues, we put into historical perspective the colonisation of America’s Great Plains, when crops replaced native vegetation, and a period of drought – compounded by the onset of the Great Depression in 1929 – triggered human displacement and massive dust storms. The government took the helm to mitigate the effects on the population and the rains returned, but major changes occurred along the way…” In the second half of the nineteenth century, Americans migrated en masse to the country’s vast central plains. Waves of settlers uprooted from the east coast to the country´s heartland, where the government offered land grants in exchange for five years of continuous residence on the property, cultivating the land and building a house on it. The territory was originally inhabited by Native Americans, who – in the best scenarios – agreed to “transfer” the land to the settlers. Often, clashes ensued between the authorities and the indigenous population, resulting in outright wars and the destruction of their livelihood. For example, of the vast herds of bison that roamed the prairies, an estimated 25 million were slaughtered in 1872-1873. Subsequently, in the decades to follow, the appearance of the Great Plains changed dramatically. A wild, drought-resistant ecosystem teeming with native flora and millions of large animals that tilled the soil beneath their feet became vast farmlands, particularly after the introduction of steel ploughs, a more efficient alternative than iron on this type of terrain. Farmers focused on cultivating wheat, a crop that was less-drought resistant with lower soil retention than the region’s native grasses. Nevertheless, in the early 1930s, a cold front from the tropical region of the eastern Pacific (known as La Niña) combined with abnormally high temperatures in the North Atlantic, triggered a period of prolonged drought (19301938) in the Great Plains of North America. Large wheat plantations yielded little or no crops. Degraded topsoil, coupled with desiccation and the effects of mechanised farming techniques, stripped the superficial layers of organic nutrients, and left the soil exposed to wind erosion. An estimated annual 369 million net tonnes of dust was lifted into the atmosphere, creating terrible dust storms over 400,000 km2 in scale (twice the size of Great Britain), that swept through the central and south-western states of Colorado, Texas, Oklahoma and Kansas, on its way to the Atlantic. For the population, the ramifications could not have come at a worse time. The onset of the drought and the subsequent Dust Bowl phenomenon coincided with the outbreak of the Great Depression in the United States, in October of 1929. Crop failures, followed by unbearable dust storms that buried farms, were compounded by unemployment rates that reached 25% at the height of the Depression, a crisis exacerbated by the Dust Bowl. It is important to note that in the years preceding the Great Monthly Strategy Report. November 2014 Depression, crops were bountiful and farmers enjoyed several seasons of high yields, the profits of which were often consigned to financial investments and bank deposits that disappeared over night. The combination of both phenomena resulted in a mass exodus from the central states. More than three million people abandoned their farms and headed to cities, where the situation was not much better and their arrival only exacerbated supply problems by reducing the ratio of food producers to consumers. The phenomenon also coincided with a shift in the economic focus of the United States implemented by President Roosevelt, known as the New Deal. One of its programmes, the Soil Erosion Service, promoted improved farming practices such as legume planting and the creation of pasturelands on which to rear livestock, whose prices were in turn subsidised by another government body to ensure the supply of quality meat products to cities. Millions of heads of livestock that could not be maintained by farmers were purchased by the government at above-market rates and, in many cases, slaughtered in order to stabilise falling prices as demand plummeted due to the crisis and the poor quality of meat products derived from animals living in substandard conditions. The restoration of market conditions meant salvation for many small farming communities, saving jobs and securing the rural population. Under the Soil Conservation and Domestic Allotment Act of 1936, more than 200 million trees were planted from Canada to Texas, which not only alleviated the problem of soil erosion, but created jobs for many unemployed labourers in the United States. Millions of acres of farmland transferred into government custody and were subsequently allocated to other uses in an effort to reduce the effects of soil degradation. The return of the rains, together with measures designed to mitigate erosion helped alleviate the problem in the years that followed. Nevertheless, the impact of the sudden changes to the ecosystem and the mass elimination of native species in favour of more productive but less resilient crops caused a natural disaster with mammoth implications for the human population, as well as for the economy and the supply of basic resources in the medium term.