From the fifth to the tenth centuries, most of Europe was covered with vast forests. Thus, the land available for agriculture was limited. Also, peasants dissatisfied with their conditions could flee from oppression and take refuge in the forest. Europe was undergoing an intensely cold climatic spell in this period. This led to severe and prolonged winters, a shortened growing season for crops, and reduced yields from agriculture. From the eleventh century, Europe entered a warm phase. Average temperatures increased, which had a profound effect on agriculture. Peasants now had a longer growing season and the soil, now less subjected to frost, could be more easily ploughed. Environmental historians have noted that there was a significant receding of the forest line in many parts of Europe. This made expansion of the area under cultivation possible.

Initially, agricultural technology was very primitive. The only mechanical aid available to the peasant was the wooden plough, drawn by a team of oxen. This plough could at best scratch the surface of the earth and was unable to fully draw out the natural productivity of the soil. Agriculture was therefore very labour intensive. Fields had to be dug by hand, often once in four years, and enormous manual labour was required. Also, an ineffective method of crop rotation was in use. The land was divided in half, one field was planted in autumn with winter wheat, while the other field was left fallow. Rye was planted on this piece of fallow land the next year while the other half was put to fallow. With this system, the soil slowly deteriorated, and famines were not uncommon. Despite these hardships, the lords were anxious to maximise their incomes. Since it was not possible to increase output from the land, the peasants were forced to bring under cultivation all the land in the manorial estate, and spend more time doing this than they were legally bound to do.

By the eleventh century, there is evidence of several technological changes. Instead of the basic wooden ploughs, cultivators began using heavy iron-tipped ploughs and mould-boards. These ploughs could dig much deeper and the mould-boards turned the topsoil properly. With this, the nutrients from the soil were better utilised. The methods of harnessing animals to the plough improved. Instead of the neck-harness, the shoulder-harness came into use. This enabled animals to exert greater power. Horses were now better shod, with iron horseshoes, which prevented foot decay. There was increased use of wind and water energy for agriculture. More water-powered and wind-powered mills were set up all over Europe for purposes like milling corn and pressing grapes.

Expansion in agriculture was accompanied by growth in three related areas: population, trade, and towns. From roughly 42 million in 1000, Europe’s population stood at 62 million around 1200 and 73 million in 1300. Better food meant a longer lifespan. By the thirteenth century, an average European could expect to live 10 years longer than in the eighth century. The towns of the Roman Empire had become deserted and ruined after its fall. But from the eleventh century, as agriculture increased and became able to sustain higher levels of population, towns began to grow again. Peasants who had surplus grain to sell needed a place where they could set up a selling centre and where they could buy tools and cloth.

In towns, instead of services, people paid a tax to the lords who owned the land on which the town stood. Towns offered the prospect of paid work and freedom from the lord’s control, for young people from peasant families. 'Town air makes free' was a popular saying. Many serfs craving to be free ran away and hid in towns. If a serf could stay for one year and one day without his lord discovering him, he would become a free man. Many people in towns were free peasants or escaped serfs who provided unskilled labour. Shopkeepers and merchants were numerous. Later there was need for individuals with specialised skills, like bankers and lawyers. The bigger towns had populations of about 30,000.