Well, Lotho was truly the initiater of the problem. He began to sell the best Leaf off to "somehwhere" (presumably Saruman). After he began to make enough money he bought up other property in the shire. Sandyman's mill for instance. Then he began to sell things besides Leaf, such as food, off and out of the Shire. To control the Hobbits who were getting angry about him selling all the food they'd need for winter, he brought in the "ruffians" who in time took over. So the destruction was half-complete by the time Saruman got there.
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