ECONOMICS 3
Immigration Policy
In 1920 the U.S. and Canada’s immigration policy differed. Canadian policy loosened up
the restrictions whereas the U.S. Immigration policy tightened a bit (Thomas & Biette, 2014).
These changes in policy impacted farmer's evaluation of labor supply. Canadian farmers
predicted continued inflow of the labor whereas the U.S. farmers recognized that labor rates
would develop increasingly inflexible. The U.S. farmers started expecting a rise in their wages
whereas Canadian farmers still didn't expect any rise in labor wages. In the middle of 1920 labor
rates were increased rapidly because of the unavailability of laborers (Rodgers, 2014). This led
to more and more farmers to reach out and get to know about the new technology in the market.
North America stared adopting machinery slowly instead of the human workforce.
Agriculture in North America
In colonial America the prime factor of livelihood was agriculture, 90 % of the
population and most of the towns were practicing agriculture for their living (Fogleman,
2014). Most of the population practiced agriculture for their family and not for other people.
After 1800 cotton became the main crop of southern plantations. The ratio of farms increased
from 1.4 million to 6.4 million in 1910 (Hoppe, 2014).
Factors affected the increase in the farms
Whenever there is a rapid change in the market or environment there are certain factors
that were involved in bringing the change. Few factors that affected the increase of machinery in
agriculture are growing interdependence, international support, framing as big business, and
machinery introduction.
Growing interdependence
From the 1980s to 1990s world leaders attempted a more systematic process to regulate
agriculture trade (Moyer & Josling, 2017). Every country's government attempted to show
some kind of support in the agriculture sector. The government showed support through
introducing new policies in the agriculture sector that would benefit farmers. After this support,
the agriculture market conditions became increasingly variable. Farmers were purely dependent
on the human workforce after machinery introduction; farmers started adopting machinery as
their main method of production.

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