Agriculture in Chile has a long history dating back to the Pre-Hispanic period. Indigenous peoples practised varying types of agriculture, from the oases of the Atacama Desert to as far south as the Guaitecas Archipelago (43° S). Potato was the staple food in the populous Mapuche lands.Bengoa 2003, pp. 199–200. Llama and chilihueque herding was practised by various indigenous groups.Villalobos et al. 1974, p. 50.Bengoa 2003, pp. 208–209.
The arrival of the Spanish disrupted local agriculture in many places as indigenous populations shrank and mining rose to prominence. Mapuches in south-central Chile adopted sheep, wheat and the horse from the Spanish. Further south in Chiloé, apple trees and pigs were successfully introduced into the local potato-based agricultural system. With the Spanish expelled from southern regions, central Chile became increasingly populated, with animal husbandry becoming the most prominent agricultural activity in Spanish-ruled areas in the 17th century. In parallel to husbandry, vineyards also grew in importance. Spanish agriculture, centered on the hacienda, absorbed most of the scattered and declining indigenous populations of Central Chile. Much land in Central Chile was cleared with fire during this period. On the contrary, open fields in southern Chile were overgrown as indigenous populations declined due to warfareOtero 2006, p. 25. and diseases introduced by the Spanish.
The 18th century saw the rise of wheat and wine for export to Peru. Villalobos, Sergio; Retamal Ávila, Julio and Serrano, Sol. 2000. Historia del pueblo Chileno. Vol 4. p. 154.
Although many agricultural lands were devastated by the independence wars and outlaw banditry, Chilean agriculture recovered fast and new lands were opened up for agriculture.Villalobos et al. 1974, pp. 406–413. This development, along with other factors, led to a conflict with free Mapuches in Araucanía. With the whole of Araucanía conquered in 1883, the region became known in the following decades as the "granary of Chile". Dispossessed Mapuches were marginalized to small plots or mountainous terrain where their husbandry operations caused severe soil erosion. The intensive monoculture of wheat and logging by Chilean and foreign settlers also contributed to severe erosion. In the far south a sheep farming boom developed at the turn of the century as the Patagonian grasslands became settled.
Despite the development of irrigation canals, Economía chilena durante el siglo XIX. Cristián Sepúlveda Irribarra. limited introduction of wage labour and apiculture much of Chilean agriculture remained backward in relation to other economic sectors. Inquilinaje, an institution reminiscent of feudalism remained into the 1960s.Rytkönen, P. Fruits of Capitalism: Modernization of Chilean Agriculture, 1950-2000. Lund Studies in Economic History, 31, p. 43.
As part of a policy of industrialization, the Chilean state invested in dairy plants, refrigerated slaughterhouses, sugar refineries, and transport infrastructure in the late 1950s and early 1960s. The subsequent Chilean land reform brought profound changes to agriculture in the 1960s and 1970s. Large holdings () were partitioned and land distributed to campesinos and cooperatives. Farmers' unions were legalized and promoted. As the military dictatorship headed by Augusto Pinochet initiated a partial counter-reform in 1973, agriculture became increasingly run by large private enterprises and individuals who concentrated land ownership. Despite a setback during the Crisis of 1982, Chile's agriculture sector expanded in the 1980s, particularly with fruit export.
Pre-Hispanic agriculture At the time of the arrival of the first Spaniards to Chile the largest indigenous population concentration was in the area spanning from Itata River to Chiloé Archipelago.Otero 2006, p. 36. In this area indigenous groups practised glade agriculture among the forests.Otero 2006, pp. 21–22. The forests provided firewood, fibre and allowed the production of planks. Agriculture type varied; while some Mapuches and Huilliches practised a slash-and-burn type of agriculture some more labour-intensive agriculture is known to have been developed by Mapuches around Budi Lake (raised fields) and the Lumaco and Purén valleys (canalized fields).Dillehay, Tom D.; Pino Quivira, Mario; Bonzani, Renée; Silva, Claudia; Wallner, Johannes; Le Quesne, Carlos (2007) Cultivated wetlands and emerging complexity in south-central Chile and long distance effects of climate change. Antiquity 81 (2007): 949–960 Pre-Hispanic agriculture extended as far south as the Guaitecas Archipelago (44° S), were indigenous Chonos cultivated Chiloé potatoes. Tools are known to have been relatively simple. In addition the Mapuche and Huilliche economy was complemented with chilihueque raising, fishing, collection of shellfish and algae.
In Valdivia and around Bueno River beans, maize and potatoes are known to have been cultivated in Pre-Hispanic times. Beans were cultivated across Chile, likely as far south as Chiloé Archipelago.
Quinoa is also cultivated since an early date in next to the coast in northern Chile, where was grown by the Chinchorro culture. Ch. quinoa was brought to the lowlands of south-central Chile at an early date from the Andean highlands. Varieties in the lowlands of south-central Chile derive directly from ancestral cultivars which then evolved in parallel to those of the highlands. It has been suggested that the introduction of Ch. quinoa occurred before highland varieties with floury perisperm emerged. There are wide discrepancies in the suggested dates of introduction, one study suggest c. 1000 BC as introduction date while another 600–1100 AD. If the older date is correct the introduction of quinoa to Chile would precede that of maize. In colonial times the quinoa is known to have been cultivated as far south as Chiloé Archipelago and the shores of Nahuel Huapi Lake.
Colonial agriculture As the Spanish settled in Chile in the 16th century many cities were founded and indean labour partitioned among Spanish conquistadores.Villalobos et al. 1974, pp. 109–113. Beyond subsistence the 16th century economy of Chile was oriented towards large-scale production. Spanish colonizers used large amounts of indigenous labour following the slave labour system used in the sugar cane plantations of the Mediterranean islands and Macaronesia. This system of labour successively killed the production base leading to the imposition of the encomienda system by the Spanish Crown in order to prevent excesses. In Chile Spanish settlers managed to continue to exploit indigenous labour under slave like conditions despite the implementation of the encomienda. Rich Spanish settlers had over time to face opposition to their mode of production by Jesuits, Spanish officials and indigenous Mapuches.Salazar 1985, pp. 23–25.
The initial Spanish settlers of Chiloé Archipelago (conquered in 1567) attempted to base their economy on gold extraction and a "hispanic-mediterranean" agricultural model. This activity ended in a general failure given the unsuitable conditions of the archipelago.Torrejón, Fernando; Cisternas, Marco; Alvial, Ingrid and Torres, Laura. 2011. Consecuencias de la tala maderera colonial en los bosques de alece de Chiloé, sur de Chile (Siglos XVI-XIX)*. Magallania. Vol. 39(2):75–95. Spaniards however reoriented their activities into logging Fitzroya.
The collapse of the Spanish cities in the south following the battle of Curalaba (1598) meant for the Spaniards the loss of both the main gold districts and the largest indigenous labour sources.Salazar & Pinto 2002, p. 15. After those dramatic years the colony of Chile became concentrated in the central valley which became increasingly populated, explored and economically exploited. Following a tendency common in the whole Spanish America haciendas were formed as the economy moved away from mining and into agriculture and husbandry.Villalobos et al. 1974, pp. 160–165.
In the 17th century economy of the Viceroyalty of Peru, Chile's husbandry and agriculture based economy had a peripheral role, contrasting to ore-rich districts like Potosí and the wealthy city of Lima. Husbandry products made up the bulk of Chilean exports to the rest of the viceroyalty. These products included suet, charqui and leather. This trade made Chilean historian Benjamín Vicuña Mackenna label the 17th century the century of suet (Spanish: Siglo del sebo). Other products exported included dry fruits, mules, wines and minor amounts of copper. Trade with Peru was controlled by merchants from Lima that enjoyed protection by the Spanish authorities in Lima. In addition to the exports to coastal Peru Chile also exported products inland to Upper Peru through the port of Arica. Trade inside Chile was small since cities were tiny and self-sufficient.
In the 1650–1800 period the Chilean lower classes grew considerably in size.Salazar 1985, p. 49. To deal with the poor and landless population a policy of founding citiesThese cities were often in fact more of villages or towns due to their size. and granting lands in their surroundings was implemented. From 1730 to 1820 a large number of farmers settled in the outskirts of old cities or formed new cities.Salazar 1985, p. 58. Settling as a farmer in the outskirts of old cities (La Serena, Valparaíso, Santiago and Concepción) was overall more popular than joining a new city since it secured a larger consumer market for agricultural products.Salazar 1985, p. 52. Chilean haciendas (latifundia) engaged little in the supply of Chilean cities but focused on international exports for revenues.Salazar 1985, p. 88.
Chile begun exporting cereals to Peru in 1687 when Peru was struck by both an earthquake and a stem rust epidemic.Villalobos et al. 1974, pp. 155–160. Chilean soil and climatic conditions were better for cereal production than those of Peru and Chilean wheat was cheaper and of better quality than Peruvian wheat.Collier, Simon and Sater William F. 2004. A History of Chile: 1808–2002 Cambridge University Press. p. 10. According to historians Villalobos et al. the 1687 events were only the detonant factor for exports to start. The Chilean Central Valley, La Serena and Concepción were the districts that came to be involved in cereal export to Peru. Compared to the 19th century the area cultivated with wheat was very small and production modest.
Initially Chilean latifundia could not meet the wheat demand due to a labour shortage, so had to incorporate temporal workers in addition to the permanent staff. Another response by the latifundia to labour shortages was to act as merchants buying wheat produced by independent farmers or from farmers that hired land. In the period 1700 to 1850 this second option was overall more lucrative.Salazar 1985, pp. 40–41
The 1687 Peru earthquake also ended a Peruvian wine-boom as the earthquake destroyed wine cellars and mud containers used for wine storage. The gradual decline of Peruvian wine even caused Peru to import some wine from Chile as it happened in 1795 when Lima imported 5.000 troves (Spanish: botijas) from Concepción in southern Chile. This particular export showed the emergence of Chile relative to Peru as a wine-making region.
Early Republican Era The independence wars in Chile (1810–1818) and Peru (1809–1824) had a negative impact on the Chilean economy. Trade was disrupted and armies in Chile pillaged the countryside. The war made commerce a high risk activity and royalist Peru, then the only market for Chilean agricultural products, was closed to commerce with independent Chile. The Guerra a muerte phase was particularly destructive for the Biobío area and ended only to see a period of outlaw banditry (e.g. Pincheira brothers) occur until the late 1820s.Bengoa 2000, p. 156.