How a Revenue Farm Worked
The auction
Farms were typically auctioned annually or over multi-year terms, with the highest bidder securing exclusive rights within a district.
Where the money went
Revenue collected from farm holders funded a meaningful share of colonial administrative budgets in some territories and periods (verify proportions before publishing).
Enforcement
Farm holders were themselves responsible for suppressing unlicensed competition within their district, effectively privatising part of law enforcement around the activity.