Persian Empire 1845

Chapter 534 Agricultural Harvesters

While Ali was engaged in a fierce internal struggle, the Baghdad Machinery Plant was also completed and commissioned. As was customary, Nasser al-Din Shah was always present at the Baghdad Machinery Plant, a project with an investment of 580 million riyals. In fact, Nasser al-Din did come to inspect it, not because of its scale, but because of its products.

"Greetings, Shah." A group of senior executives from the machinery factory greeted Nasser al-Din with a bow, led by the factory manager.

"Alright, don't be shy."

Upon hearing Shah's greeting, the group straightened up and stood aside. Led by the factory manager, Nasser al-Din entered the factory area.

"Shah, please look. This is a newly developed combine harvester. It combines a small steam engine with a harvester to achieve self-propelled power. It is also equipped with an automatic tying device to reduce manual tying. It uses steel serrated blades to improve durability. Moreover, we have equipped it with a large number of agricultural tools, making it a versatile tool in the countryside."

Following the direction the finger was pointing, several combine harvesters were neatly arranged together. One of them also had a plow, harrow, and a small flour mill placed next to it.

"What is the current production volume of this product? How much do you plan to sell it for? How are the sales? How many people are interested?"

The factory manager began to answer, "Because we've just started production, we can only produce about 35 harvesters a month. And considering the complex terrain in rural areas and the high requirements for durability, we plan to sell them for around 3200 riyals."

Upon hearing that it would cost 320 pounds, Nasserdin asked him with some doubt, "Isn't that a bit too expensive?"

"The main problem is that the production costs of the steam engine and parts are a bit high. Those blades also need to be purchased from Tabriz at a high price. We have to sell them at that price to make a profit."

Shah continued, "Have you considered whether the market can accept it?"

“We have conducted research and found that this harvester is quite suitable for people with large fields. There is a market of about 3000 to 6000 units in our country. Moreover, there are large tracts of farmland in Austria and Prussia, and we believe there is a demand of about 5 units in Europe.”

If this is true, Iran currently has approximately 2400 million hectares of arable land. This is only possible after the Ministry of Agriculture and Forestry has worked tirelessly to develop agriculture.

When Mesopotamia was first reconquered, local farming techniques were primitive and still in their early stages. Simple wooden plows, often without bulldozer blades, were harnessed to oxen or mules, sometimes water buffalo, but rarely horses. In the fertile river valleys, abundant harvests were easily achieved, sometimes yielding two or three crops a year. Therefore, the region lacked the incentives that people in harsh, uncultivable climates had for developing technological innovations.

Another point is that, with very few exceptions, educated gentlemen in the Middle East rarely bothered with farming, while farmers were largely uneducated. Therefore, the Mesopotamian region generally lacked the necessary conditions for technological improvements: academic training, craft skills, and interaction among those truly engaged in agriculture. After Iran entered the region, it initiated land reforms and agricultural upgrades. A large number of new agricultural tools were introduced, increasing farmers' enthusiasm and boosting yields. Irrigation systems were also built, making it far better than under the Ottoman regime.

The Shia also contributed to agricultural development, which was attributed to the Prophet's teachings. While many praised commerce, few expressed respect for agriculture. They showed little concern for the farmers' practical needs, except for matters of taxation. As the trend towards state-led economic development intensified, farmland fell under the control of military officers with little agricultural knowledge and little interest in the long-term prosperity of their territories, naturally leading to a further decline in the situation.

Therefore, many Shia religious scholars compiled a "Respectful Terms for Agriculture," extracting sentences from the Quran and other religious texts that emphasized agriculture, and promoted it. Even Najaf had to agree with it.

However, there is still a large amount of agricultural land available for development in Mesopotamia and Transoxiana. There are also undeveloped areas within Iran itself, which, according to the most optimistic estimates, could exceed 5000 million hectares. Of course, the actual situation will depend on the future.

These arable lands aren't solely used for growing grains; higher-value crops like fruits, coffee, and cotton are also cultivated. For instance, the Amu Darya basin is a major cotton-producing area, and the Muscat region is a coffee-growing region. By cultivating these crops, farmers' lives have improved, and they are also able to consume some high-end industrial goods.

Iran has no shortage of desert land, which can be improved through composting and tree planting. Other arable land can also be gradually improved. The introduction of this harvester to the market will allow Iran to cultivate more land for food production. It will also allow more people to move to cities and strengthen Iran's industry.

"I'm quite optimistic about this harvester now, but your output is a big problem."

"Don't worry, Shah. I already had a plan for this. As soon as there's any sign of a surge in demand, we'll continue to recruit more people. We expect that with just a week of buffer training, we can increase daily production to over 25 units."

Nasser al-Din nodded, trusting that he could handle the job. He then returned to the Baghdad Royal Palace and issued an order requiring Iranian banks to provide loans for these harvesters to alleviate the burden on the people.

At the same time, Iran also began to amend its strict banking regulations. Previously, the establishment of private banks was prohibited, but now local banks were permitted. Subsequently, with the approval of the Ministry of Finance, the Tehran Bank, Tabriz Bank, Iran Post Bank, and Baghdad Bank were established between 1863 and 1866. They were under the jurisdiction of the Ministry of Finance and the Central Bank, and could operate locally, but were still subject to many restrictions.

Foreign banks were still required to deposit a 20% margin (amended in 1856) to conduct transactions, but they could not penetrate as deeply inland as they did in other countries; Iran's financial walls were very strong. And they began to expand outwards, constantly eroding the existing order.

The country's current financial structure consists of: the National Bank of Iran as the central bank; four major state-controlled banks: the Industrial and Commercial Bank of Iran, the Postal Bank of Iran, the Agricultural Bank of Iran, and the Bank of Iran; three regional banks; and three foreign banks: the Austrian Trade Bank, the Naples Bank, and the Bahrain Bank.

The expansion of financial capital also spurred industrial development. In 1866 alone, seven banks issued a total of 7231 million rials in industrial and commercial loans, the number of stocks on the Tehran Stock Exchange increased to 119, and numerous joint-stock companies were established. With substantial industrial investment and government policies, Iran's industry also took off.

(End of this chapter)