A STUDY OF LAND SETTLEMENT IN THE PRINCE GEORGE-SMITHERS AREA, BRITISH COLUMBIA By W. J. ANDERSON! INTRODUCTION Considerable areas of forested land in north central British Columbia are physically suited for agricultural development. Some of this land is already in farms but fairly extensive tracts are still part of the public domain. To convert it to agricultural use will involve large capital expenditures. It is important that land policy be based on the potential net income of individual farms, that is on the earning capacity of farms which have been formed into economic units on the basis of land use well suited to the region and management practices designed to make effective use of the capital and labour of their operators. A study of settlement experience in similar or contiguous areas may be revealing in that regard. The history of the free homestead in Canada and the United States has shown that the opportunity to take over virgin land and develop it has been sufficient inducement to attract settlers. A man who obtained a parcel of virgin land free or for a nominal sum could hope to build it gradually into a farm and to accumulate capital in the form of land values as the community developed. This process solved the problem of the capital requirement for land for those persons with limited resources who wished to get started in farming. It provided an opportunity to substitute their own labour and ingenuity in developing new land for the capital which would be required to purchase an established farm. The policy of free homesteads, though it was successful in promoting settle- ment, operated favourably for the settler only when the quality of the land was such that the quantity granted to the individual provided a better than marginal farm unit and could be developed relatively inexpensively to the stage where it returned an income. ‘The difficulty then, neither always realized nor within the scope of the settler’s knowledge, was the appraisal of the economic potentialities of new land and the cost of development. As a result there were attempts on the part of many settlers to operate uneconomic farm units. Perhaps the settlers who faced the greatest difficulties were those with little capital who tried to develop forest land. Instead of paying for clearing and breaking they were forced to use their own labour, accompanied by a relatively low level of living, for many years, before sufficient land was under cultivation to yield an adequate living. Modern machines offer an alternative to the slow and arduous hand labour method of clearing and breaking forested land. They do require a large capital investment, however, which means that most farm operators must use them on a, custom or rental basis. Moreover, even when the machines are available for hire, a large outlay must be made in order to bring sufficient land under cultivation to provide an adequate family living. This fact has been generally recognized and has led to the demand that in the development of forested land the state should assist in making available the minimum capital requirement needed for a farm that would provide a decent living for a farm family. As a result land clearing i Formerly Agricultural Economist, Economics Division, Dominion Department of Agriculture. 7 92711—3