Each storehouse adds 2% to your overall production. You can build four per territory including in your city. That’s 8% per territory. The total number of territories you can have (including your city) is 10, and 10 times 8% is 80%! That means all of your production will (eventually) have 80% of it’s production added to it over again just from storehouses, and since you can build them where you can build farms and houses they don’t take up any valuable space.
Each upgrade is permanent and will continue to affect you months down the line even if you don’t log in. The bonuses it gives are worth the gold in the long run. The earlier on you can buy the upgrades from your university the better. They help everything from peasant efficiency and resource production to troop survival rate and espionage success rate.
Giving your peasants plenty of food and housing gives you a happiness bonus. I keep my taxes at +1 gold per peasant which doesn’t affect the happiness rating and feed and house mine to get the largest happiness bonus possible.
Make this project second to storehouses and your university because those two things will make your resource buildings worth much more. Of course you’ll need around five farms, two gold mines, one stone quarry and two lumber mills just to get started, but beyond that, go for the university and the storehouses first. Once those are complete, focus on filling every colored square with the requisite resource building.
Beware of getting more peasants than you can afford, but as long as you can house them and feed them, attain more and more and more. The max is 300 and I say go for it as soon as you can. You can see which quests are good for farming peasants at which levels on the quest farming page.
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