Abstract
This article challenges the dominant strand of thinking on Iranian agriculture, which has hitherto stressed the depressing effects of the 1970s’ oil boom on the rural economy. In highlighting the nature of the economic boom both in the rural and urban areas, it delineates new constraints imposed on agriculture and offers a new explanation as to its outcome. The precipitated outflow of agricultural workforce in this period is thus shown to have been a common source of difficulty to the sector, and not a mere manifestation of its demise. The reasons for this process are located in new developments in the rural non‐farm and urban construction sectors, rather than in the ‘decay’ and ‘disintegration’ of agriculture.