I’ll begin with a brief account of how our modern global grain trading system was invented in Chicago in the 19th century, which is maybe a bit of a jolt from the present focus of this blog cycle on the forms of property but hopefully my purposes will become clear.
Prior to the railroad/grain elevator/futures market nexus that began to emerge in the 1850s, prairie grain farmers sold their product in sacks that retained their identity with the source farm through to the point of sale. The innovation of the railroad/elevator system was to create standardized grades of grain that enabled the harvest from individual farms to be amassed together in vast quantities as a fungible commodity like money. The innovation of the futures market was to remove uncertainty about future price fluctuations, essentially by enabling speculators to assume the burden of the risk by betting on movements in grain prices. Before long, the value of the futures being traded greatly exceeded the value of the physical grain in existence.
These innovations called forth vastly more economic activity than previously possible, created a torrent of cheap grain that flooded global markets and pushed farmers in other places out of grain production (and often out of farming altogether), and stimulated the growth of prairie grain farming, while removing from farmers themselves substantial economic autonomy, fostering perhaps a self-interest on their part in the grading of their grain at the margin, but not a more holistic interest in the story of their grain from field to fork. They also pretty much forged the global economy as we know it today (I’ll ignore the meat/livestock side of the story for brevity, but the globalization of meat production was another prong to the same history)1.
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