We can make a more direct and useful calculation using acres as follows. In 1860 farmland in the seventeen-state West was 17,839,000 acres and in 1900 was 249,222,000 acres; therefore, the growth in farmland was 231,383,000 acres; with 76,480,436 acres homesteaded (counting proved-up and in-process), the percent of farmland gained via the Homestead Act was 33.1 percent, hardly the “small role” Cochrane asserted.
In sum, correcting Shannon’s analysis shows that his estimate of “less than a sixth” of the new farms originating from homesteads is badly misleading. In the twenty-nine homesteading states, we found that 32.6 percent of new farms probably developed from homesteads. But more relevantly, in the seventeen-state West, we calculated that 63.9 percent of new farms created originated in homestead claims, contrary to Shannon’s assertions and those of the many historians who repeated them. And we found that 33.1 percent of new farmland in the West derived from homestead claims, making the ratio of purchased to homesteaded land about two to one, not the “three or four times” Hine asserted. The bottom line is that between 1863 and 1900 homesteading accounted for approximately two out of three new farms created and one-third of the new farmland in the West.
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A more troubling question is why Shannon’s numerically wrong calculations and misleading statistical presentation have lingered for so long and found such ready acceptance among today’s scholars. The reasons scholars uncritically accepted his results are fundamentally unknowable, but the pattern is consistent with the hypothesis that having accepted that homesteading was somehow a sham, these scholars quickly welcomed any supporting evidence without checking it. It is long past time when such “evidence” should shape our understanding of homesteading.
Correcting the Historical Record
We can collect the findings from above to present a more accurate picture of homesteading in the period 1863–1900 in the West. First, we find that homesteading’s role in creating farms varied substantially among the seventeen states, as shown in figure 2.2. States where homesteading was very important in farm formation are Colorado (86.6 percent), Idaho (84.6 percent), South Dakota (80.3 percent), and Washington (96.7 percent). In some states, those with the highest density of homesteads, the number of homesteads patented actually exceeded the number of new farms created and still surviving by 1900—for example, Montana (109.6 percent), North Dakota (113.3 percent), Oregon (114.5 percent), and Wyoming (109.6 percent).
Although initially puzzling, this pattern (exceeding 100 percent) is quite understandable in areas where farms were undergoing the long-term process of farm consolidation. Imagine a section of land, one square mile, where there were no farms in 1860; in the next decade, four homesteaders each file 160-acre claims and prove up. In 1870 there would be four farms, all derived from homesteads, so we would say 100 percent of the farms in this section started as homesteads. Then, over the next thirty years, three of the four homesteaders sold out to the fourth. By 1900, our square mile would have four times (400 percent) the number of homesteads filed as functioning farms. As the example shows, how many homesteads resulted in functioning farms is highly time-dependent in a context of consolidation: the longer the period, the higher the ratio of original homesteads to functioning farms. For the West as a whole, that is, the sixteen states west of the Missouri River plus Minnesota, homesteading likely contributed up to 63.9 percent of the new farms created.
These findings are broadly consistent with Gilbert Fite’s conclusion: the charge that not many settlers actually obtained free land “is definitely not true if applied to the Minnesota-Dakota-Nebraska-Kansas frontier in the late 1860s and 1870s. . . . [Between 1863 and 1880] 86,169 farmers in Minnesota, Dakota, Nebraska, and Kansas obtained patents [and another] 50,673 who had filed entries before June 30, 1880, gained their title [later]. Thus between 1863 and 1880, 136,842 of the 242,000 new farms were settled as homesteads. . . . This was about 56.5 percent of the total farms created. . . . About two-thirds of the farms in Minnesota were originally established by homesteaders.”
Homesteading was also important but less so in the proportion of land newly converted to farming in the West. As shown in figure 2.3, the states with the highest proportions are Idaho (65.4 percent), Washington (54.4 percent), North Dakota (50.3 percent), and Oregon (44.7 percent). Overall in the seventeen-state West, homesteading accounted for 33.1 percent of farmland added. Since homesteads accounted for a much larger percentage of farms than homesteaded acres did of new farm acres, the obvious implication is that homesteaded farms were on average smaller than farms obtained through purchase or other methods. This result would be expected, given that homesteads were capped at 160 acres (except under the Kinkaid and Enlarged Homestead Acts), whereas farms created via purchase, military warrants, agricultural college scrip, or other methods were not. This result again demonstrates why one cannot draw conclusions about the number of homesteaders vs. other farmers based on acreage unless one also knows the average size of each group’s farms.
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What picture of homesteading, then, emerges from the more soundly grounded statistics reviewed above? Considering the West during the period 1863–1900, and remembering our earlier caution about the approximate nature of the data, both of the stylized facts we began the chapter with have been shown to be incorrect. The first assertion, that homesteading was a minor factor in farm making and most farmers purchased their land, might be replaced, based on the data in figure 2.2, with this finding:
Homesteading was a major factor in farm making in the West; before 1900 it was responsible for nearly two out of every three new farms and almost a third of the new land brought into farming.
The second stylized fact, that most homesteaders failed to prove up their claims, is refuted by a corrected reanalysis of Donaldson’s data for the period 1863–80 and by the Historical Statistics evidence for 1881–1900; instead, it might be replaced with:
Most homesteaders—between 55 percent to 63 percent before 1900—succeeded in obtaining title to their land during the first phase of homesteading.
This is a nearly complete reversal of what scholars for more than a half century have accepted as the received wisdom on homesteading and have been teaching their students.