The conflict reached its peak in 1801 and witnessed both companies expending more resources on out-competing each other than were expended on the exploration of new fur grounds. Between 1803–1804, Hudson's Bay morale had plummeted in the face of fierce Northwest competition and forced the two companies into negotiations but neither side could come to terms. Negotiations broke down again in 1805 and despite employing more aggressive agents and the provision of incentive programs, the Hudson's Bay Company was ready to abandon the fur trade in 1809. The Nor'Westers ability to make region-wide plans based on first-hand knowledge in addition to their ability to react quickly to changing circumstances provided the North West Company with a decisive advantage prior to 1810. After 1810, the combination of new management within the Hudson's Bay Company and the approval of a company-sponsored colony at Red River put the North West Company on the defensive. The establishment of a Hudson's Bay colony in the Red River region denied the Nor'Westers access to vital supplies and restricted the company's ability to expand westwards. Additionally, the establishment of an agricultural colony made the Hudson's Bay company nondependent on the profitable fur trade, a factor that the Nor'Westers simply could not compete with. Moreover, by establishing an agricultural colony, the Hudson's Bay Company gained a decisive advantage over the North West Company by virtue of a viable fallback economy as well as a readily available food source during economic slumps. Much of this new-found confidence hinged on the Selkirk's success at Red River and resulted in the colony becoming the central focus of seven years of inter-company warfare.