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The Major stages in the historical development of agriculture provide an interesting context for the conventional view that agriculture is unique in its vulnerability to intensification practices, while the use of such practices in industrial sectors is believed to provide rare opportunities for environmental regulation. Following an extended period of technological progress in primitive agriculture, we find that earlier forms of intensive agriculture, often leading to catastrophic depletion of soil resources, involved steeper social hierarchies and larger scale operations on land held by religious or military authorities. Such top-down farming practices were mainly applied in connection with factors of production like slavery or serfdom, and increased food production was in the interest of a restricted elite that expected protection against possible threats from below. The imposition of external costs on both the environment and society was one of the major incentives to intensify production, both in terms of quantity and quality of outputMany of these features changed when the economy was transformed by the industrial revolution and transportation became available at steadily decreasing costs. As the industrial revolution led to urbanization, the cost of labor relative to other factors of production increased and led to increased demand for more productive and efficient farming methods. This induced a development and restructuring of the agricultural sector with large worker flows from rural areas to manufacturing industries. The resulting increased food prices, together with increased demands from migrant workers, induced incentive-oriented technical progress in these sectors in order to meet the requirements. Intersectoral labor reallocation that was facilitated by the possibility of feeding the poor was thus not only critical for the financing of the industrial revolution, but also shaped its general equilibrium and created related political and institutional changes.
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