How did agriculture contribute to the great depression

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The Great Depression of British Agriculture occurred during the late nineteenth century and is usually dated from 1873 to 1896. Contemporaneous with the global Long Depression, Britain’s agricultural depression was caused by the dramatic fall in grain prices that followed the opening up of the American prairies to cultivation in the 1870s and the advent of cheap transportation with the rise of steamships. British agriculture did not recover from this depression until after the Second World War.

Farmers who had borrowed money to expand during the boom couldn’t pay their debts. As farms became less valuable, land prices fell, too, and farms were often worth less than their owners owed to the bank. Farmers across the country lost their farms as banks foreclosed on mortgages. Farming communities suffered, too.

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Answer

How did the Great Depression affect farming?

How were farmers affected by the Great Depression? Farmers who had borrowed money to expand during the boom couldn’t pay their debts. As farms became less valuable, land prices fell, too, and farms were often worth less than their owners owed to the bank. Farmers across the country lost their farms as banks foreclosed on mortgages. Farming communities suffered, too.

What was agriculture like during the Great Depression?

Was life bad for everyone?

  • Farmers had to deal with huge swarms of grasshoppers that would come out of nowhere and eat up all their crops.
  • Farmers sometimes burned corn instead of wood to keep their houses warm because they couldn’t sell the corn and wood was expensive.
  • In some areas, thousands of starving jackrabbits came down from the hills to devour and destroy crops.

More items…

What are farmers doing to survive Great Depression?

What did farmers do during the Great Depression? Although it wasn’t easy, many farmers were able to survive during the Great Depression. They managed to grow and sell enough crops to pay their mortgages and keep their farms. These farmers were usually located in areas of the country that weren’t hit by drought and dust storms.

What was farming like during the Great Depression?

One advantage to living on a farm during the Great Depression is that farmers could grow their own food. They had vegetables, eggs, and milk that sometimes were tough to come by in the city. They even had meat occasionally from sheep, cattle, or pigs. What did they wear?

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How was farming a cause of the Great Depression?

Factories and farms were producing more goods than the people could afford to buy. As a result, prices fell, factories closed and workers were laid off. Prices for farm products also fell, as a result, farmers could not pay off bank loans and many lost their farms due to foreclosure.


Why was agriculture important in the Great Depression?

High crop prices translated quickly into needed income for US farmers. Income from crops nearly tripled from March to July of 1933, and total farm income doubled, according to the authors. This extra income meant that farmers could buy new equipment, more food, clothing, and so on.


How did decline in agricultural prices lead to the Great Depression?

Perhaps most important, falling farm product prices shifted income away from farmers. This column argues that this redistribution explains between 10% and 30% of the US output decline in 1930. Recovery from the Great Depression began in 1933 in part because farm product prices rose, reversing this redistribution.


What was happening in farming in the 1920s that contributed to the Great Depression?

While most Americans enjoyed relative prosperity for most of the 1920s, the Great Depression for the American farmer really began after World War I. Much of the Roaring ’20s was a continual cycle of debt for the American farmer, stemming from falling farm prices and the need to purchase expensive machinery.


How did agriculture contribute to the stock market crash?

As Food Demand Drops, Farm Prices Collapse Until then, land prices had been rising rapidly as farmers and non-farmers saw buying farms as a good investment. With the collapse of farm prices, the land bubble burst, often dropping the market value of the land well below what the investor owed on it.


What did farmers and homeowners have in common during the Great Depression?

1 Answer. Joey P. One thing that farmers and homeowners had in common is that the one thing that they had invested a lot of money and time into was dropping in price.


What was the economic effect of the Great Depression on America’s farmers?

Prices paid for crops dropped sharply and farmers fell into debt. In 1929 the average annual income for an American family was $750, but for farm families if was only $273. The problems in the agricultural sector had a large impact since 30% of Americans still lived on farms [7].


What was the economic effect of the Great Depression on America’s farmers farmers grew more and more crops despite drought conditions?

What was the economic effect of the Great Depression on America’s farmers? Farmers grew more and more crops despite drought conditions. Farmers could not pay taxes or repay money they had borrowed. Farmers stripped away natural grasses that held the soil in place.


How was agricultural industry impacted by the 1920?

Crisis of the 1920s and 1930s By June 1920, crop prices averaged 31 percent above 1919 and 121 percent above prewar prices of 1913. Also, farm land prices rose 40 percent from 1913 to 1920. Crops of 1920 cost more to produce than any other year.


How did the condition of farmers or manufacturing workers before the Great Depression contribute to its effects?

How did the condition of farmers or manufacturing workers before the Great Depression contribute to its effects? Farmers and workers earned so much money in the 1920s that they forgot how to save. Farmers and poor workers were already struggling to get by, so they had no savings.


What problem did farmers face throughout the 1920s?

What problems did farmers face in the 1920s? The demand for food dropped, so farmers’ incomes went down. They could not afford payments on their farms, so they lost their land.


How did farming Cause the Great Depression?

Factories and farms were producing more goods than the people could afford to buy. As a result, prices fell, factories closed and workers were laid off. Prices for farm products also fell, as a result, farmers could not pay off bank loans and many lost their farms due to foreclosure.


How much did farmers make during the Great Depression?

National farm income fell from a high of $16.9 billion in 1919 to only $5.3 billion in 1932. The Agricultural Adjustment Act (AAA) of 1933 paid farmers to reduce the number of acres they planted in crops such as tobacco, peanuts, and cotton. By restricting production, the law was intended to boost prices.


How many farmers were affected by the Great Depression?

Nevertheless, some 750,000 farms were lost between 1930 and 1935 through bankruptcy and foreclosure.


Why did farmers destroy their crops during the Great Depression?

Government intervention in the early 1930s led to “emergency livestock reductions,” which saw hundreds of thousands of pigs and cattle killed, and crops destroyed as Steinbeck described, on the idea that less supply would lead to higher prices.


How many farms closed during the Great Depression?

During 1933, at the height of the Great Depression, more than 200,000 farms underwent foreclosure. Foreclosure rates were higher in the Great Plains states and some southern states than elsewhere.


How did World War I affect farmers and help lead to the Great Depression?

How did World War 1 affect farmers and help lead to the depression? During World War 1, they had increased their harvests to raise more food for soldiers. After the war, larger harvests flooded the market with cheap food and brought down profits. At the onset of the Great Depression, urban unemployment


What did farmers eat during the Great Depression?

Chili, macaroni and cheese, soups, and creamed chicken on biscuits were popular meals. In the 70 or more years since the Great Depression, a lot has changed on the farms of rural America. All of these changes have resulted in farms that usually specialize in only one main crop.


What was the gross income of Minnesota farmers during the Great Depression?

Minnesota farmers’ gross cash income fell from $438 million in 1918 to $229 million in 1922.


What happened to farm prices in 1920?

The resulting large surpluses caused farm prices to plummet. From 1919 to 1920, corn tumbled from $1.30 per bushel to forty-seven cents, a drop of more than 63 percent. Wheat prices fell to $1.65 per bushel. The price of hogs dropped to $12.90 per hundred pounds.


What was the price of corn in 1932?

In 1932, Minnesota corn prices fell to twenty-eight cents per bushel, wheat dropped to forty-four cents per bushel, and the price of hogs fell 75 percent to $3.20 per hundred pounds. With less demand for land, real estate values plunged to an average of $35 per acre by the late 1930s.


Why did Minnesota farmers take out loans?

Encouraged by the US government to increase production, farmers took out loans to buy more land and invest in new equipment. As war-torn countries recovered, the demand for US exports fell, and land values and prices for commodities dropped. Farmers found it hard to repay their loans—a situation worsened by the Great Depression and the drought years that followed.


How much did corn cost in Minnesota in 1914?

In Minnesota, the season-average price per bushel of corn rose from fifty-nine cent s in 1914 to $1.30 in 1919. Wheat prices jumped from $1.05 per bushel to $2.34. The average price of hogs increased from $7.40 to $16.70 per hundred pounds, and the price of milk rose from $1.50 to $2.95 per hundred pounds. To meet the demand, the US government …


What was the purpose of the Federal Farm Loan Act?

To meet the demand, the US government encouraged farmers to produce more. In 1916, Congress passed the Federal Farm Loan Act, creating twelve federal land banks to provide long-term loans for farm expansion. Believing that the boom would continue, many farmers took advantage of this and other loan opportunities to invest in land, tractors, and other new labor-saving equipment at interest rates ranging from 5 to 7 percent. By 1920, 52.4 percent of the 132,744 Minnesota farms reporting to the Agricultural Census carried mortgage debt, totaling more than $254 million.


How much land was under cultivation in Minnesota in 1929?

Minnesota farmers had nearly 18.5 million acres under cultivation by 1929. The demand for land inflated the price of farm real estate, regardless of quality. The average price of Minnesota farm land more than doubled between 1910 and 1920, from $46 to $109 per acre.


Where did farmers live during the Great Depression?

U.S. Farmers During the Great Depression. A dust storm engulfs Stratford, Texas, in April 1935. A desolate farm in Dallas, S.D., abandoned to the dust in 1936. By 1933 there was despair in many quarters, as illustrated by this ad for a company seeking door-to-door salesmen.


How many farms were lost in the 1930s?

Finally, the farmer himself made a token bid, the auctioneer kept trying, and soon someone in the crowd said insistently, “Sell ‘er!” The rest of the machinery and livestock went the same way – no one bid except the original owner, who got all his stuff back at a very low price. Nevertheless, some 750,000 farms were lost between 1930 and 1935 through bankruptcy and foreclosure.


How much wheat was harvested in the Great War?

In 1913, U.S. farmers harvested more than 50 million acres of wheat (with an average yield of 15.2 bushels per acre), and got $0.79.9 per bushel for the crop. At the peak in 1919, 75.7 million acres were harvested with a somewhat diminished yield of 12.8 bushels per acre, but the high price of $2.14.9 per bushel.


Why were grain prices so low in the 1920s?

Even though grain prices were low because of world over-production, American farmers had to keep planting large acreages in the hope of getting enough cash to pay off debts. Wheat prices bobbed along at a few cents over a dollar for most of the 1920s. Some farmers survived.


What happened to wheat in 1921?

In 1921, the price of wheat dropped to $0.92.6 per bushel, and heavily indebted farmers couldn’t make the payments on all those new acres and tractors.


What was the poster for the Great Depression?

A poster for a U.S. government program designed to help dispossessed farmers. The Great Depression that caused so much trouble in the world during the 1930s ended only with the boom caused by World War II. For American farmers however, the downturn began shortly after World War I ended, continuing mostly unabated for two decades.


Who exhorted farmers to increase production?

All during the war, Food Administrator Herbert Hoover exhorted farmers in this country to increase production. As the prices realized for their products rose, farmers began to borrow money to buy more acres and new machinery, especially farm tractors since labor costs were sky high.


How did the Great Depression impact farmers?

When prices fell they tried to produce even more to pay their debts, taxes and living expenses. In the early 1930s prices dropped so low that many farmers went bankrupt and lost their farms. In some cases, the price of a bushel of corn fell to just eight or ten cents.


How many farmers were affected by the Great Depression?

Nevertheless, some 750,000 farms were lost between 1930 and 1935 through bankruptcy and foreclosure.


Why did farmers destroy their crops during the Great Depression?

Government intervention in the early 1930s led to “emergency livestock reductions,” which saw hundreds of thousands of pigs and cattle killed, and crops destroyed as Steinbeck described, on the idea that less supply would lead to higher prices.


How much did farmers make during the Great Depression?

National farm income fell from a high of $16.9 billion in 1919 to only $5.3 billion in 1932. The Agricultural Adjustment Act (AAA) of 1933 paid farmers to reduce the number of acres they planted in crops such as tobacco, peanuts, and cotton. By restricting production, the law was intended to boost prices.


How many farms closed during the Great Depression?

During 1933, at the height of the Great Depression, more than 200,000 farms underwent foreclosure. Foreclosure rates were higher in the Great Plains states and some southern states than elsewhere.


How did World War I affect farmers and help lead to the Great Depression?

How did World War 1 affect farmers and help lead to the depression? During World War 1, they had increased their harvests to raise more food for soldiers. After the war, larger harvests flooded the market with cheap food and brought down profits. At the onset of the Great Depression, urban unemployment


Will farmers get payments in 2020?

In addition, farmers were able to tap billions of dollars in funding from the Paycheck Protection Program. The $46 billion in direct government payments to farmers in 2020 broke the previous annual record by about $10 billion, even after accounting for inflation.


Why did farmers produce more food during World War I?

Farmers in the United States began producing more food during World War I to help supply allies in Europe with food. This overproduction continued through the 1920s. At this time, more and more farmers were trading their work animals for tractors and other machinery, which increased production even more. The overabundance of wheat, meat and other farm goods on the market drove the price down without increasing demand, which left farmers poor. Also during this time, more and more homes in urban and suburban areas had access to electricity and the demand for consumer goods rose. Manufacturers produced more goods to meet the demand. Advances in machinery and better processes increased production, but the workers’ wages remained the same. Supply greatly surpassed demand, and workers were laid off in great numbers. Since many people were unemployed and barely had money for food and other necessities, the demand for consumer goods plummeted.


What were the causes of the Great Depression?

A main cause of the Great Depression was overproduction. Factories and farms were producing more goods than the people could afford to buy. As a result, prices fell, factories closed and workers were laid off. Prices for farm products also fell, as a result, farmers could not pay off bank loans and many lost their farms due to foreclosure.


How did the Civil War affect farmers?

After the Civil War, farmers had increasingly struggled economically. The growth of cities and railroads opened new markets for farm products, and industrialists found new ways to process them into convenience foods. But little of the money from these new markets went to farmers — instead, it went to railroads, other distributors, and processors. (This trend — in which farmers get less and less of what consumers pay for food — has continued to the present day.) New technologies, meanwhile, made farmers more efficient — they could produce more with less work from the same land. But expensive machinery introduced what economists call an economy of scale: Only bigger farmers could afford the technology, and so farmers had to expand — or be forced off the land, as many were. (That trend, too, would continue throughout the twentieth century.)


How did the stock market crash affect farmers?

The stock market crash and everything that followed — bank failures, failing businesses, unemployment — made life even harder for farmers. Farmers were still producing more food than consumers were buying, and now consumers could buy even less. Farm prices fell even further. Cotton had sold for 35 cents a pound in 1919 but only 6 cents a pound in 1931. National farm income fell from a high of $16.9 billion in 1919 to only $5.3 billion in 1932. The Agricultural Adjustment Act (AAA) of 1933 paid farmers to reduce the number of acres they planted in crops such as tobacco, peanuts, and cotton. By restricting production, the law was intended to boost prices. This was the first “farm bill” in the U.S., and it introduced a new era of government regulation of and support for agricultulture. A second AAA followed in 1938.


What was the impact of the growth of cities and railroads on farmers?

The growth of cities and railroads opened new markets for farm products, and industrialists found new ways to process them into convenience foods. But little of the money from these new markets went to farmers — instead, it went to railroads, other distributors, and processors. (This trend — in which farmers get less and less of what consumers pay for food — has continued to the present day.” data-share-imageurl=””>


How did falling crop prices affect North Carolina?

None of the tenant farmers had running water, and only eight even had outhouses — the rest had no sanitary facilities at all. Sharecropping families, meanwhile, made only 9 cents a day per person. Falling crop prices also encouraged farmers to cut down forest for lumber. After the Civil War, both pine forests in the east and mountain forests in the west had faced heavy cutting, and by 1900 the state’s virgin forest was nearly gone. Now, second-growth and third-growth forests faced destructive cutting.


How did the 1930s affect agriculture?

The Great Depression changed the lives of people who lived and farmed on the Great Plains and in turn, changed America. The government programs that helped them to live through the 1930s changed the future of agriculture forever. Weather touched every part of life in the “Dirty 30s”: dust, insects, summer heat and winter cold.


What did farm families raise?

Many farm families raised most of their own food – eggs and chickens, milk and beef from their own cows, and vegetables from their gardens . People who grew up during the Depression said, “No one had any money. We were all in the same boat.”. Neighbors helped each other through hard times, sickness, and accidents.


Why did people drive out of Nebraska?

As you can see in the Water Section, large numbers of people were driven out of Nebraska and the Great Plains because of the Depression. Yet, a majority “toughed it out” and stayed.


What were the effects of the dryness of the 1940s?

When the dryness, heat, and grasshoppers destroyed the crops, farmers were left with no money to buy groceries or make farm payments. Some people lost hope and moved away. Many young men took government jobs building roads and bridges. By 1940, normal rainfall returned, and federal programs helped to boost farm prices and improve the soil. About the same time, a new government program started to hook up farmhouses to electricity, making farm life easier and safer.

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