THE ERIE AND CHAMPLAIN CANALS, TWO HUNDRED YEARS OF HISTORY AND HOW IT TRANSFORMED THE FLOW OF COMMERCE BY OPENING THE WEST

It began just 200 years ago, on July 4^th, 1817 when the beginning of a 40-ft. wide and 4 feet deep canal was begun connecting the Hudson River to the Great Lakes, 363 miles long in the town of Rome, New York.  It was completed eight years and four months later at a cost of 7.1 million dollars. Tolls paid off its construction costs within eight years.

It was not a new idea, connecting the West to the East, as the thought had been around since the 18^th Century. However, federal funding for it had been rejected by President Thomas Jefferson, who is said to have stated that “talk of a canal 350 miles through wilderness is a little short of madness.”  It took the determination of De Witt Clinton, Governor of New York, and the New York legislature to make it a reality.   Detractors, and there were many, called it “Clinton’s big ditch.”  But it was an immediate success when it opened on October 26, 1825, eight years and four months after the first shovel was placed into the ground in that small town outside of Albany, New York. 

The canal quickly transformed North America, and was soon called the greatest engineering feat of the 19^th Century in America.  Some even marveled when it was completed that it was The Eighth Wonder of the World.  It was, at the time, the longest artificial waterway and greatest public works project in North America.  But how it transformed America was its greatest achievement

It quickly transformed New York City into a leading economic and commercial city with the most important seaport in North America. Its population quadrupled between 1820-1850.  It opened the interior of the West to settlement from those in the East as well as those coming from Europe.  Many have concluded that this resulted in the demise of New England agriculture, as it was then known, to inexpensive goods from the mid-west.  Farmers, loggers, miners, and manufactures now had quick access to the markets of the East.  For example, a ton of wheat from the Mid-west to the Northeast before the Erie Canal cost $100 per ton, and only about fourteen thousand bushels were shipped East.  After the Canal, it cost $10 per ton to ship a product and it took one-third of the time.  In 1840, for example, about eight million bushels of wheat were shipped East from the Mid-west.  The East began to rely on the mid-west for food and other products, and New York City became the international gateway.  The Erie Canal made the West accessible and valuable, unlocking the floodgates to western settlement.

Canal building mania lasted a decade or so after the completion of the Erie, with some 3000 miles of waterway by 1840. The Champlain Canal, part of the New York system, was opened in 1823 and connected Lake Champlain to the Erie Canal.  This too led to a further transformation of the Vermont agriculture and forestry economy and marked the end of the Champlain Valley’s relative isolation from the outside world and its entry into the national economy. It is said that the opening of the canal “fundamentally affected the economic development of the Champlain Valley.”

Before the coming of the railroads, state legislatures chartered some of the most elaborate canal plans, many which were never developed.   The first canal system in the United States was in Bellows Falls, Vermont with the Connecticut River being the first major waterway in the country improved for travel by 1810.  In the 1820’s plans were discussed for a canal (Onion River Canal) connecting the Connecticut River to Lake Champlain in Vermont.   The coming of the railroads after the 1840’s led to the economic demise of the canal system and any plans to expand or create new systems. Railroads were faster, cheaper and did not freeze over in the winter. 

Today the Erie Canal still has some commercial traffic, but is primarily recreational and tourism use system.  In the year 2000, Congress created the Erie Canal National Heritage Corridor to recognize the canal’s historical significance in the transformation of North America.

COMMENTARY:

Transportation and improvements in travel have had a profound impact on agriculture and food systems.  In the beginning, the state legislature authorized “toll roads.”  Improvements in transportation have taken place over time.  Railroads were used to ship milk and other products. (note a butter train first left St. Albans in 1852, once a week to Boston.  The first milk train left Bellows Falls around 1890 for Boston).  Improvements in transportation have continued with the Interstate highway system in Vermont in the late 1950’s and early 1960’s.  With airplanes, products can be shipped overnight by air into and out of the U.S.  A lobster landed in Maine on one day can be in a restaurant in France the next, for example.  In the winter fruits, can be airlifted from places like Chile, or flowers from other places in South America too.  The internet has further allowed for communication instantly between buyers and sellers.  As Thomas Friedman, the author notes, “The World is Flat.” Amazon will today ship an order directly to a house the next day after an order is made.   The world has come far since the Wright Brothers flew their first plane at Kitty Hawk in 1903.

What will be the advancing in transportation over the next 200 years, and how will these changes impact Vermont agriculture and food systems and the working landscape?

A TRIP THROUGH HISTORY WITH VERMONT’S CELEBRATED DAIRY INDUSTRY

Since the mid 1800’s dairy farming has been Vermont’s major agricultural enterprise. It is today.  Dairy farming has never been easy due to the many changes on the farm, in the markets, and in the public policy arena over the years.

At one time, after the demise of the position as the leading merino sheep state, Vermont became the butter capital of the world, winning prizes in international competitions. Starting in 1854, an iced butter train left St. Albans for Boston once per week and the region was known as one of the greatest  butter producing centers in the world.  Vermont butter was considered the acme of perfection in New England markets.  By 1899, Vermont was producing 35 million pounds of butter. Whole support industries like the Bellows Falls Machinery Company (maker of butter churns and equipment), and the Montgomery butter box firm, existed to support this trade. Eventually the butter trade, as well as the businesses that supported it, largely disappeared. This was due to competition from the West (cheaper to bring butter into New York from Chicago than from Vermont, it is recorded).  From 1890 on, competition with western butter became increasingly acute.  Other events that led to its decline included the introduction of margarine (see the stories about the butter and margarine wars), and the increasing demand for fluid milk from cities like Boston. 

Becoming a fluid milk producing state had its challenges too. These included fair pricing from buyers, shipping rates and fees, sanitary regulations with interstate shipments, management on the farm, and better animal genetics.  Due to the concerns, relative to fair pricing, numerous studies were conducted.  For example, in 1915 the Boston Chamber of Commerce did a thorough analysis of the marketing constraints faced by Vermont dairy farmers, and recommended that farmer cooperatives be formed to guarantee better pricing for farmers.  Federal legislation to include Capper-Volstead Act in 1922 gave these farmer cooperatives limited anti-trust protection against price fixing.

In 1927, thirty percent of Vermont’s population was engaged in farming, and there were twenty-seven thousand farms in the state.  By this time, Vermont was a major supplier of fluid milk to the Boston Market.  The depression, however, brought a period of great economic turmoil to agriculture in Vermont as well as nationally. With the passage of the federal Agricultural Adjustment Act of 1937, marketing orders were established and dairy farmers in Vermont, New England, and elsewhere voted for federal control of pricing through these orders.  After World War II, a parity system was instituted to provide better pricing to dairy farmers that equated to the period 1910-1914.  This was considered one of the better times in the farm economy.  The pricing system was advocated and supported by dairy cooperatives throughout the United States.

Since 1982, and the elimination of the parity concept, dairy pricing in the United States has moved toward more market orientation and greater pricing unpredictability.  While there have been several attempts since 1982 to better control or influence pricing ( a national whole herd buyout, and followed by the Northeast Dairy Compact), today greater pricing unpredicapitcaly and volatility exists for the convential dairy farmers in Vermont and elsewhere.  Vermont and other Northeast conventional dairy farmers are faced with an unstable and unpredictable demand for dairy products in international markets; a declining demand for fluid milk in regional markets and its depressing impact on the Marketing Order pricing; a Westward migration of U.S. milk production; and finally, increased costs associated with water quality environmental compliance.

The early leaders of Vermont agriculture stated in the 1894-95 Report of the State Board of Agriculture that “our own state has seen one industry after another go down under the fierce competition of cheap western land.  Our sheep, beef, and grain production have all been borne down through this course, and today our dairymen are contesting the ground with these same forces.”   Yes, time and technologies do change, but as others recently have concluded, while our advantage in Vermont and the Northeast is being near large markets, it is an advantage that will continue to erode without an aggressive strategy. U.S milk production will continue its shift to large dairies in the West.  It is known that dairy product manufacturers look to where production is growing and not declining in siting facilities.

While there continues to be debate over the direction of Vermont’s valued conventional dairy sector, I believe it is understood by many that the strength of Vermont agriculture is the entrepreneurial ability of farmers to solve problems.  However, the magnitude of the problems faced today requires that there be informed dialogue among and between farmers, and their cooperatives, consumers, processors, environmentalists, policy officials and others to consider and debate feasible options for the longer-term sustainability of the dairy sector in Vermont.  It is too important an industry to do otherwise as the market will likely continue to erode Vermont’s position as a valued milk producing state if action is not taken soon.

                                                             

Roger Allbee is a former Secretary of Agriculture, Food and Markets for Vermont. He has been Executive Director of the USDA Farm Service Agency for Vermont; he has served on the U.S. House Committee of Agriculture; he has been Chair of the Animal and Animal Products Advisory Committee to the U.S. Trade Ambassador and the U.S. Secretary of Agriculture; he has participated in the Seattle Around of Multinational Trade Negotiations; and he has been on the Senor Management Staff of the Former Farm Credit Banks and Bank for Cooperatives for the Northeast.  He does a blog on Vermont’s agricultural history at www.whatceresmightsay.blogspot.com

WHY WE CELEBRATE JUNE AS DAIRY MONTH IN VERMONT

There are many reasons to celebrate Vermont’s dairy industry, and many facts bear that out.  We know that dairy brings in $2.2 billion to Vermont’s economy and accounts for 70% of agricultural sales.  Six to seven thousand jobs in our state depend on dairy.  In addition, New England depends on the state’s milk production with sixty-three percent of the region’s supply coming from farms in Vermont.  There have been many changes in Vermont’s dairy industry over the years.

History shows that dairy started slowly in Vermont.  The commercial dairy industry in Vermont did not begin until the demise of the world-renowned Marino sheep sector in the mid-1800s.  It started slowly at first with butter being the main product produced on the farm. Dairy, from the beginning, has been well suited for our state’s grassland economy. By the mid to late 1800’s there was a growth in local creameries due to the fact that milk could not be shipped long distances. For example, by 1900 there were 186 creameries and 66 cheese factories in the state.  By the mid to late 1800’s St Albans was known as the butter capital of the world, with one butter train per week leaving for the Boston Market.  Buyers from as far away as New York and Boston came to the town each week to bid on blocks of butter, and by 1880 one-forth of the state’s butter production came from that area.  There was increased attention to dairy cow genetics as many farmers came to realize that making good butter required good milk and more than milking the old family cow.  Entire new support industries, like the butter tub factories in Montgomery and Stowe, Vermont, and the Vermont Machine Factory in Bellows Falls that made butter churns, grew up around the butter trade.  During this period, Vermont butter won international awards for best butter in the world.

Laws were enacted at the state and national levels to protect this industry.  For example, it was unlawful to serve any butter imitation product at any place of business in the state.  When margarine was introduced, it was illegal to sell the product except in its original white color or form (some might remember the yellow coloring sold separately from the margarine in the way distant past.)

Changes in demand and in the industry itself took place when nearby cities reached out for fluid milk in the late 1800’s and early 1900’s.  Producing and shipping fluid milk to urban markets in other states created some new challenges for dairy farmers in Vermont.  They now depended on others for shipping and for marketing and they had to comply with new health requirements.  This led to the establishment of dairy cooperatives within Vermont and nationally to better control pricing and quality standards.  The first milk train left Bellows Falls, Vermont for Boston in 1890.  By 1928 the profitability of Vermont’s dairy farmers was linked to the fluid market.  Today about $400 million of sales come from fluid milk and $650 million from cheese, with the remainder of the $1.3 billion in sales from other products like yogurt and ice cream.

A lot has changed over the years and continue to change as in any industry sector linked to national and international markets. Today the 850 plus dairy farms are family owned with the majority having less than 200 cows.  Five percent of the 321 million gallons of milk sold is certified organic, and dairy cooperatives are important to those sales.  It is no wonder that dairy still is so revered in our state with 97% of Vermonters saying that this industry is important to the state, its beauty, and way of life. 

In 1937, June was designated as National Dairy Month as a way of promoting the drinking of milk. As we think about Vermont’s dairy industry and its importance to our state today, join your neighbors across the nation, as well as the state, in celebrating June as dairy month.

By Roger Allbee, former Vermont Secretary of Agriculture, Food and Markets

He does a blog on the History of Vermont Agriculture at: whatceresmightsay.blogspot.com

In Vermont Agriculture and Food Systems, Understanding the Past Reinforces the Future

It is being called the Renaissance of the Past, the renewed interest in agriculture and food systems within our state. It manifests itself in many forms to include growth in CSA’s, or community supported agriculture, farmers’ markets, food hubs, and the further diversification of agriculture production with an array of products from the land and animals that are raised on the land. This re-birth or renaissance further reinforces Vermont’s past, its present, and its future.
Vermont’s agriculture, forests, and working landscape have always defined the state. The early settlers who came to Vermont from Southern New England after the French and Indian War were looking for productive soils. While they were subsistence farmers in the beginning, planting a few crops and keeping a few animals for their own use, increasingly many began raising items for sale or barter as towns and nearby cities grew in size. They found markets for grain, potatoes, and livestock in Montreal, Quebec, Troy, Albany, and Boston. In the early 1800s significant cash-crop exports included potash, pearl ash, whiskey, pork, beef, wheat, flour, grain, butter, cheese, lumber and horses. In the Champlain Valley, before 1820, growing grains was a very important agriculture enterprise and those grains were either distilled locally or hauled to markets in Albany or Troy.
Land and water transportation played integral parts in the development of industry and trade in agriculture and other products. Road building began in the late 1700’s with private turnpikes chartered by the state legislature. Canal and water transportation became as important as overland routes. In Bellows Falls, located on the Connecticut River, the construction of the first canal built in the U.S. began in 1792. This canal made it possible for our state’s producers to ship several tons of products to Hartford, CT on flat-bottomed boats in 3 days.
On the West side of the state, Burlington became a flourishing center of commerce after the completion of the 64-mile Champlain Canal in 1823. The access provided by these transportation networks to new markets grew increasingly important to the economic health of Vermont farms as the farm economy evolved from subsistence and a barter economy to cash basis. These new transportation networks also exposed products from the state to new competition. Railroads also proved to be a mixed blessing to Vermont farmers who witnessed dire economic realities as competition from western wool, beef, butter, and grain forced changes in the farm economy.
As agriculture continued to change in response to market conditions and competition, specialization grew and farmers focused on specialty crops, livestock, and livestock products. In the early 1800s when disease, pests and increased competition undermined grain production in the Champlain Valley, many farmers

adapted by raising Merino sheep. Grass was “king” in the hills and valleys of Vermont and this proved ideal for these sheep. Many towns had flocks of one thousand or more, and Vermont became known as the sheep capital of the world, home to over one and a half million. These sheep were envied for their fine wool and fleece and were in great demand worldwide. Nevertheless, Vermont and its Merino sheep fell captive to tariff regulations, international events, and competition from the western U.S. and abroad. While this specialization was taking place, other products continued to be produced. The 1850 agricultural statistics illustrate the following product diversification: butter, cheese, oats, beef, wheat, barley, rye, buckwheat, field beans, potatoes, hay, orchard products, flax, hops, hemp, silk, maple sugar, maple syrup, honey, and wool.
Vermont had already established itself as an important maple producing state, and the same was true for its apple production. Many farms produced maple syrup in the spring, providing important income diversity. Orchard farming began as early as the 1810’s on Isle La Motte. Beginning in the late 1800’s, large-scale orchards were established along Lake Champlain, and Vermont shipped its maple and fruit products throughout the U.S. and abroad, enhancing Vermont’s agricultural diversity.
Following the decline of the Merino sheep Industry, there was a slow migration to the specialization in butter and cheese production. These products had traditionally been made on the farm, with skills passed down from one generation to the next. As cities and towns grew in size, merchants reached out for these products and demand outstripped the capacity and the uneven quality of on-farm production, leading to the development of creameries and cheese factories. St. Albans had the world’s largest commercial creamery, and Vermont butter became known for its quality, and a product from the state won a gold medal for the best butter in the world. As demand for products grew, creameries sprang up in many towns and communities around the state. By 1900, 186 creameries and 66 cheese factories operated throughout Vermont. Whole industries sprang up to support this production to include cheese and butter box production, and specialty churns. This too changed as cities further south reached out for fluid milk and the first milk train left Bellows Falls, Vermont for Boston in 1890.
Commercialization of dairying and the interstate shipment of milk and milk products created renewed economic challenges and farmer cooperatives became important in bargaining for fair pricing for their members. Federal actions relative to dairy price supports and parity pricing could not forestall the pressure for change and the eventual beginning of the deregulation of the dairy industry in the early 1980’s. Many of the early farm leaders, who had witnessed these changes in Vermont agriculture over time (loss of Merino sheep, butter markets, grain production, beef trade), and had been part of it, recognized the competitive advantages of farming in Vermont. An important advantage was being near emerging markets in the Northeast and growing and producing products of the highest quality to meet changing consumer needs. Others saw the advantage in

growing grass and raising animals that could convert grass to energy. All agreed that Vermont farmers could never compete with the west on a commodity-pricing basis.
Through the years, farmers have had to adapt to changes. Today, there is a renewed interest by consumers in local and regional foods. Vermont farmers are taking the lead in many areas, to include, being known for organic and other locally produced food products. This renewed interest in local foods has resulted in the growth in farmers’ markets, food hubs, CSA’s or community supported agriculture, farmstead cheese production, farm raised beef, new maple products and production, new vineyards, pick your own fruit operations, and many other products from the farm. Maple, however, is still considered the soul, and dairy, the anchor of Vermont agriculture.
Vermont today is increasingly known for its food systems and connection to the land and the Vermont brand. This working landscape helps to support and define our state, its past, present, and future. It helps support a vibrant tourist industry, and connects people to places. National Geographic, just a few years ago, stated that Vermont was the number five place in the world to visit and the number one in the U.S. and that this was due to its working landscape and quaint villages. It is a true Renaissance, reinforced by the many products now being produced on or from the land.
By Roger Allbee, Townshend, Vermont
Former Vermont Secretary of Agriculture, Food and Markets