After World War I, the United States attempted to rebuild itself both politically and economically. Unfortunately, the United States economy was very unstable; therefore, the stock market crashed in October of 1929. Many people were investing their income and savings into speculative ventures and even borrowing money from brokers and banks in order to pay for the stock in cash. The stock market crash caused financial turmoil which resulted in many businesses closing and countless layoffs. With so many people unemployed or underemployed, businesses continued to fail and unemployment was at an all-time high. Also, the dust bowl was going on at about the same time, therefore farmers were hurting as well and crops were not flourishing. By 1932,…
In the period 1865-1900, technology, government policy, and economic conditions all changed American agriculture a great deal. New farming machinery had a large role in the late 19th century, giving farmers the opportunity to produce a lot more crops than they used to. The railroads had an enormous influence on agriculture. They were able to charge the farmers large fees, expenses that farmers barely had enough to cover, in order to transport their goods throughout the expansive country. The booming industry also changed American agriculture, creating monopolies and gaining incredible wealth with which the farmers simply could not compete. Economically, the monetary policy along with the steadily dropping prices of agricultural produce led farmers further into debt, eventually producing outcomes such as the crop-lien system and sharecropping. All of these tie into government policy which favored the large and wealthy industries and monopolies over the farmers.…
The growth of corporations in post-Civil War America led to economic deflation which subsequently widened the gap between the rich and the poor, paving the way for a change in labor and the relationships between social classes. The chart form Historical Statistics of the United States depicts the connection of the increase in big business with the improved innovations of mass production in agriculture. While improved farming equipment increased the crop production, the demand for produce declined, creating economic deflation. In response to the farmer’s plight, Charles Macune came up with the idea of the subtreasury plan, a plan that would allow farmers to store their nonperishable commodities in government warehouses until the market prices rose. Also, as a response to the farmer’s struggle the Farmer’s Alliance was created with the intention of alleviating farming hardships. Similar to agricultural mass production, Theodore Dreiser’s Sister…
March 16th Farm Bill sent to congress to remedy lack of purchasing power of farmers. This includes the measures against over-production which by October result in 6 million pigs being slaughtered and the meat thrown out as waste, and cotton crops plowed under.…
The Agricultural Adjustment Act (AAA) tried to raise prices by regulating the production of basic crops such as wheat, dairy, tobacco and corn by giving cash payments to farmers. It paid farmers who voluntarily cutback and left their fields vacant to end agricultural excess. This system limited the amount of each crop grown so there would be a demand for the crops and farmers could sell them at higher prices. The AAA also gave loans to farmers facing bankruptcy. Farm income increased by more than fifty percent. (Britannica, History.com, Hardman,…
During World War II produce was needed in mass quantities from American farmers. This was because the war was focused around Europe and the Allies’ land was destroyed. With the high demand of…
Both benefited farmers and seasonal workers, along with the conservation of the land. The New Deal helped preserve the soil and set regulations that would keep money flowing, workers working and food to be distributed throughout the local areas for a decent price. In 1934 the Taylor Grazing Act was proposed to protect grazing on public lands and to manage amounts and use of it. The act also balanced livestock production which in the long run was positive for human consumption.…
With the lack of European food production prices in America rose dramatically to supply the demand the war had brought. After the First World War the markets were flooded with food that was no longer being sent to the soldiers and European farms able to produce crops again. With the low prices most farmers found it easier in their shoes then that of the homeless and unemployed in the cities. The farmers could grow there own food and had livestock such as cows,, chickens, and pigs for milk, eggs and meat. Farmers also found that they could use feed sacks and other old items as scratch materials for clothing and other needs to stay on their land.…
Many farmers lost their homes because of the low prices they received for their products and the rising taxes. To counter this, the AAA (Agricultural Adjustment Act) was created. The AAA was designed to maintain a balance between production and consumption of food. The AAA also answers many demands made by farmers: higher prices for their crops; the chance to refinance loans over a longer period of time; and cash relief to pay debts. The first demand was solved by using a process known as "supply and demand." By growing less, the price of the crops rises. Wheat that was sold for $0.38 a bushel in 1932 now rose to $1.02 a bushel in 1936. The AAA is also paying farmers for not growing crops to help pay off debts. The final result of the AAA is that American farmers were now making a decent…
During the 1920s American farmers faced difficult times especially only making up one forth of the workforce. Many farmers saw several opportunities for increasing their production by buying an increase of harvest yields and land to put under plow in order to meet the demands created by World War 1. Farmers also bought expensive tractors and other merchandize farm equipment and by doing so led farmers into huge debt and additional mortgage payments. Later, demands fell nearly hitting rock bottom and hitting it hard. But in spite of the drop postwar production remained high due to increasing merchandise of farm equipment and methods. However, failing to sell off crop surpluses and pay banks and other institutions created more problems. Through the mid 1930s farmers faced additional problems and looked for the governments help. Dust storms and droughts hit hard through the Great Plains and the high plains, regions of Texas, Oklahoma,…
The troubles of a farmer were part of a larger economic problem that was affecting the entire nation. Deflation followed the Civil War, which made the amount of money in circulation decreased therefore the value increased. This was bad for the farmer because products took up a lower value. Loans that needed to be repaid with dollars are now worth more than what the farmers had originally borrowed, so many farmers lost money. The farmers saw a solution. It was the use of "cheap money" to reverse the effects of deflation. Farmers demanded the increase of greenbacks with the addition of…
One of the earliest farm bills introduced by the Federal Government was called the Agriculture Adjustment Act. The Agriculture Adjustment Act was proposed in 1938. Farm incomes were rapidly falling as the Great Depression deepened. In the early twentieth century more than 25% of American were farmers. The government hoped to increase farm income by providing incentives to farmers to take farm land out of production, and thus reducing supply. The Act also provided subsidies for the major commodities of corn, wheat, and cotton ("Agricultural Adjustment Administration," n.d.). This Act is considered to be the beginning of the modern farm bill. There have been 15 major farm bills pass since the 1938 Agriculture Adjustment Act. Starting in 1973 the Farm Bill has been revised about every 5 years.…
Farming was the major growing production in the United States in the 1930's. Panhandle farming attached many people because it attracted many people searching for work. The best crop that was prospering around the country was wheat. The world needed it and the United States could supply it easily because of rich mineral soil. In the beginning of the 1930's it was dry but most farmers made a wheat crop. In 1931 everyone started farming wheat. The wheat crop forced the price down from sixty-eight cents/ bushels in July 1930 to twenty-five cents/ bushels July 1931. Many farmers went broke and others abandoned their fields. As the storms approached the farmers were getting ready. Farmers increased their milking cowherds. The cream from the cows was sold to make milk and the skim milk was fed to the chickens and pigs. When normal feed crops failed, thistles were harvested, and when thistles failed, hardy souls dug up soap weed,…
In addition to the drought, The New Deal Agricultural Adjustment Act (AAA), which was a part of the New Deal, paid farmers not to grow grains or cotton; this enabled landowners to evict the sharecroppers since they were no longer necessary to work the land. Since the owners of the land could use machinery, known as “cats”, one man on a ‘cat’ could do the work of 12-15 workers, they saw no need to keep tenants on the property with which they had to share profits. Between the Agricultural Act and the use of machinery in farming, it was difficult, if not impossible, for small farmers to make ends meet. Being unable to pay their mortgages or to ‘earn their keep’ on tenant farms, many families were driven from their land; this marked the beginning of the end of small family farms.…
Documents A-H reveal some of the problems that many farmers in the late nineteenth century(1880-1900)saw as threats to their way of life.(a)explain the reasons for agrarian discontent and(b)evaluate the validity of the farmers' complaints.…