You might be familiar with the different types of agricultural operations such as plantations, ranches, livestock farms and even with the term hardscrabble farm but do you know what a Bonanza farm is? In this Footnote our guest columnist, Dr. Jim Connors, from South Dakota State University will educate us about Bonanza Farms. Take it away Dr. Connors.
Creation of Bonanza Farms
When you hear the word Bonanza, many people think of the 1960s era western television show. The show Bonanza was set on the Ponderosa cattle ranch in the mountains surrounding Lake Tahoe, NV. Few people outside of the upper great plains region would know that the term bonanza was also used to describe large grain operations in the late 1800s commonly referred to as Bonanza Farms.
In modern day 2024, the public is always warned of the growth of large corporate agriculture operations that result in the decline of small family-owned farms. However, this is not a new concern. The same scenario took place in the last few decades of the 19th century when gigantic bonanza farms appeared in the upper great plains region which includes North Dakota, South Dakota, and western Minnesota.
The farms were given the name “bonanza” because they were seen as a “lucky strike” type operation that was a “get rich quick” opportunity. One of the main issues with the bonanza farms was they were owned by absentee landowners. Many of the owners were railroad officials, land speculators, bankers, politicians, and industrialists from Minneapolis or the east coast. The owners, who didn’t know much about farming, hired local farmers to serve as Farm Managers to oversee the operations and organization of the farm.
A number of factors coalesced to allow for the growth of bonanza farms.
- Land – the land in the upper great plains region was largely flat, stoneless, treeless, and extremely productive.
- Machinery – large steam driven tractors pulling large mold-board plows began appearing across the region.
- Railroad Land-Grants – the bankruptcy of the Northern Pacific Railroad during the Panic of 1873 made large tracts of land available for purchase by wealthy east coast investors.
- Transportation – The growth of railroad lines throughout the upper great plains improved the transportation of crops from producers to market or processors.
- Export Markets – the increase in grain exports to Europe improved the markets and profitability of large grain farms.
- Grain Processing – The growth of the grain processing industry, specifically in Minneapolis-St. Paul resulted in greater demand for quality wheat from large-scale operations. The processing of wheat into flour resulted in Minneapolis-St. Paul being recognized as the “Flour Milling Capital of the World.”
A good description of the creation of Bonanza Farms is as follows (Drache, 1964, p. 8):
Wheat production was deemed best adapted to the conditions of frontier agriculture. Land was cheap so the farmer used as much of it as possible in relation to labor and capital. This led to large farms and rapid mechanization, resulting in wheat monoculture.
Figure 1: Field operations using a steam tractor and teams of horses on a Bonanza Farm in the Red River Valley of North Dakota.
Figure 2: Threshing machine operating on 19th century farm.
Figure 3: Steam tractors pulling gang plows on the Bagg Bonanza Farm
Growth of Upper Great Plains Region
Many Bonanza Farms were at least 10,000 acres in size. It was commonly agreed that a farm had to have at least 3,000 acres of cultivated land to be considered a bonanza farm. This allowed for the purchase of large expensive machinery, specifically steam tractors to till the land. Economies of scale allowed for large operations to make significant profit. While new technology and machinery was utilized, the farms still required considerable manpower to operate. Large farms needed more labor, which resulted in a population boom across the Dakotas during the last decades of the 18th century.
The great boom in agriculture and railroad development across the upper great plains occurred between 1879 and 1886, peaking around 1883-1884. J.B. Power, a land agent for the Northern Pacific Railway stated, “men, capital and energy…rapidly converted the raw prairie into a great field of waving grain” (Drache, 1964, p. 26).
The Great Dakota Boom during these decades resulted in the population of North Dakota tripling, 50 new incorporated towns, new villages, schools, railroads, post offices, churches, flour mills, newspapers, and banks. The growth of the Bonanza Farm system helped play a major part in the development of the upper great plains region.
Bonanza Farms were so large that they required a militaristic division of management and labor. Because most operations were greater than 10,000 acres, they were divided into divisions of 5,000 acres. These were further divided into stations or sub-divisions of 1,200 to 1,800 acres. The entire Bonanza Farm was led by a Bonanza Manager. Divisions were operated by a Superintendent and stations or sub-divisions were led by foremen.
This hierarchy can still be seen today in land-grant university and agricultural experiment “stations.” While some universities have dropped the name “station” for their research farms, many still utilize the term. These agricultural experiment stations are usually operated by a superintendent, manager, or foreman.
Decline of Bonanza Farms
Eventually all good things must come to an end, and so it happened with Bonanza Farms. Eventually the overproduction of wheat resulted in a decline in the price per bushel received for the crop. In addition, periodic droughts and high investment costs in machinery took its toll. The reliance on one-crop monoculture of wheat caused many operators to lose everything and go bankrupt.
Because of the early success of the bonanza farm system, land values started to rise, and the slim profit margins eventually forced most operations to disband. The era of the bonanza farms started coming to an end around 1910. It has been written that,
The contributions of the bonanza system to American agriculture in general were obviously limited…the economic significance was a short and restricted one and that the chief value of the bonanza era was historical. (Drache, 1964, p. 219)
Bagg Bonanza Farm
While most Bonanza Farm facilities are long gone, the land is still farmed and produces an abundance of crops. At least one Bonanza Farm still exists and can be visited today. In the southeastern corner of North Dakota is the Frederick A. & Sophia Bagg Bonanza Farm. The Baggs began acquiring land in 1890. The farm grew in size until it encompassed 7,000 acres. The buildings consist of a main house which housed the Bagg family and some of their workers, and numerous agriculture buildings to facilitate the operation of the farm.
Bagg described his operation as “essentially a factory operation, using labor division, management, and cost management techniques from industrial business, but applied to the practice of agriculture (Bagg bonanza farm, n.d.)
The Bagg farm is one of the best-preserved examples of a bonanza farm complex remaining in the United States. In 2005, it was declared a National Historic Landmark and is open for tours and events throughout the year.
Figure 4: Bagg Bonanza Farm National Historic Landmark Marker
Teaching Agricultural History
In addition to being able to visit the Bagg Bonanza Farm, the history of bonanza farms across North Dakota and the upper great plains is being taught in North Dakota schools. The State Historical Society of North Dakota has created a program called North Dakota Studies. One of the courses is titled People Living on the Land.
The curriculum is divided as follows:
- People Living on the Land
o Unit 1: Back Through Time
o Unit 2: A Time of Transformation
o Unit 3: Waves of Development
o Unit 4: Modern North Dakota
Unit 3 is divided as follows:
Unit 3: Waves of Development
o Lesson 2: Making a Living
Topic 3: Farming
Section 4: Bonanza Farms
Figure 5: North Dakota Historical Marker – Bonanza Farms in the Red River Valley
Historical Agriculture Demonstrations
In addition to visiting the Bagg Bonanza Farm, it is still possible to see many of the historical agricultural methods demonstrated even today. Throughout the country there are numerous agricultural historical societies that host antique farming demonstrations.
This past August, I was able to attend the Albert City Thresherman’s and Collectors Show in Albert City, Iowa. The three-day show included horse drawn plowing, discing, and harvesting. Steam powered tractors were being used to plow and run stationary threshing machines. These are two of the agricultural practices utilized on the Bonanza Farms throughout the upper great plains.
Figure 6: Steam powered tractor pulling gang plow at Albert City Thresherman’s and Collectors Show – August 2024 (photo by Jim Connors)
Figure 7: Thresher demonstration at Albert City Thresherman’s and Collectors Show – August 2024 (photo by Jim Connors)
Conclusion
The late 1800s saw major technological changes in agricultural practices across America. The availability of railroad land grants, productive land, modern steam driven tractors, railroad transportation, and wheat milling resulted in the growth of Bonanza Farms across the upper great plains region. The period from 1870 to 1910 was a transformative time in American agriculture.
The remnants of these Bonanza Farms can still be seen today at the Bagg Bonanza Farm National Historic Landmark in North Dakota. Demonstrations of agricultural practices used on the Bonanza Farms can still be observed every summer at antique farming demonstrations and thresher jamborees. The Bonanza Farms are a unique part of American agricultural history.
References
Bagg Bonanza Farm (n.d.) https://www.baggbonanzafarm.com/
Bonanza farms. (2024, April 6). In Wikipedia. https://en.wikipedia.org/wiki/Bonanza_farms
Cameron, L. A. (2021). Bonanza farms, Red River Valley. MNopedia. Minnesota Historical Society. https://www.mnopedia.org/bonanza-farms-red-river-valley
Dambach, B. (Executive Producer).(2000). Bonanza Farms: Prairie giants of the norther plains [Video]. YouTube. https://www.youtube.com/watch?v=mMCYX9a_b9k
Drache, H. M. (1964). The day of the bonanza: A history of bonanza farming in the Red River valley of the north. Fargo, ND: North Dakota Institute for Regional Studies.
State Historical Society of North Dakota (n.d.) People Living on the Land, Unit III Waves of Development, Lesson 2: Making a Living, Topic 3: Farming, Lesson 2: Bonanza Farms.