The rancho system shaped Mexican California's economy and society. Large land grants to prominent individuals created a cattle-based economy, with hides and tallow as key exports. This system established a social hierarchy with rancheros at the top and Native American laborers at the bottom.

Land grants varied in size and were influenced by social status and connections. By the 1840s, about 500 ranchos existed, mostly owned by elite families. This system greatly impacted Native Americans, displacing them from traditional lands and forcing them into harsh working conditions on ranchos.

The Rancho System in Mexican California

Role of rancho system

• Spanish and Mexican governments established land grant system in Alta California granted large tracts of land to prominent individuals (rancheros or Californios) for raising cattle and livestock
• Shaped California's economic landscape with cattle ranching as dominant activity, hides and tallow being primary exports
• Cattle trade flourished with foreign merchants from United States and England
• Influenced social structure with rancheros and families as elite class holding political power and social influence
• Native Americans worked on ranchos as laborers, vaqueros (cowboys), and servants creating hierarchical social structure

Land grants for Californios

• Spanish and Mexican governments awarded land grants to individuals meeting requirements of Mexican citizenship, Catholicism, and good character
• Required to build house, plant fruit trees, and raise livestock on granted land
• Land grants varied in size from 4,500 to 50,000 acres (1,800 to 20,000 hectares)
• Distribution influenced by social status, political connections, military service, loyalty to Mexican government, and marriages and family ties among Californio elite
• By mid-1840s, approximately 500 ranchos in Mexican California with most land concentrated among small number of prominent families

Impact on Native Americans

• Detrimental effect on Native American populations as they were displaced from traditional lands and hunting grounds
• Forced to work on ranchos as laborers under harsh conditions with little pay
• Mexican government did not recognize Native American land rights and rarely considered their presence or land use in grant petitions
• In some cases, forced to relocate to missions or designated areas
• Loss of land and traditional ways of life led to poverty, disease, and cultural erosion

Economic activities of ranchos

• Cattle ranching primary activity with cattle raised for hides (used as "California banknotes" currency) and tallow for leather goods and soap production
• Other livestock raised included sheep for wool and horses for transportation and cattle herding
• Agriculture secondary with crops (wheat, corn, beans, grapes, oranges) grown for local consumption and some wine and brandy production
• Largely self-sufficient with skilled laborers (blacksmiths, carpenters) employed on larger ranchos to support operations