1920s - Farmers

What happened 5 years after tarrifs were introduced? (2)

European countries began to introduce retaliatory tarrifs

This reduced international trade

Sharecroppers

Often African American farmers who rented their farms using their harvest to pay off the debt they owed to the landlord

What did most sharecroppers end up in?

A cycle of poverty

Sharecropper Cycle: Stage 1 (2)

Sharecropper is provided land and seed

In exchange, he promises landowner half of the crop

Sharecropper Cycle: Stage 2

Sharecropper buys food and clothing on credit from landowner’s store

Sharecropper Cycle: Stage 3

Sharecropper plants and harvests crop

Sharecropper Cycle: Stage 4 (2)

Sharecropper gives landowner crop to sell

Sharecropper will get half the earnings minus the cost of his purchases for the year

Sharecropper Cycle: Stage 5 (2)

When settling up, landowner says that sharecropper owes more than he has earned

This was deceptive - many farmers couldn’t argue as they were uneducated

Sharecropper Cycle: Stage 6

To pay debt, sharecropper must promise landowner a greater share of the next year’s crop

Short term consequence of sharecropping (2)

By the time sharecroppers had shared their crops and paid debt, they rarely had any money left

They were often uneducated - couldn’t argue with the landowners who cheated the

Long term consequence of sharecropping

A sharecropper frequently became tied to one plantation, having no choice but to work until his debts were paid

What happened to wheat prices post WWI?

They fell from $2.50 to $1 per bushel

What was prohibition?

The constitutional ban on the production, importation, transportation and sale of alcoholic beverages

What was the consequence of prohibition? (3)

Caused by the 18th ammendment

Reduced the demand for grain from brewers and distillers

Significantly reduced an important form of income for farmers

What was the effect of changing American diets?

Higher standards of living meant Americans ate more meat and comparatively fewer cereals

Consequence of growhth of synthetic fibres

Reduced the market for natural fibres eg. cotton

Technological advances (3)

More crops could be produced on the same / reduced acreage

During the 1920s, 13 million acres were taken out of production

Farm population fell by 5% but production rose by 9%

Tractors (2)

Greater use of tractors reduced need for horses

Reduced demand for animal food

Mechanisation

Increased efficiency led to farmers producing more than the demand - overproduction

What percentage of farms operated at a loss?

Around 66%

What was the Fordney-McCumber Tariff (2)

Passed in 1922

A massive tariff which imposed up to 38.5% tax on imports

Fordney-McCumber Tariff: Consequence (2)

Led to foreign governments retaliating with similar import duties on American goods

This meant American farmers struggle to sell to foreign markets

What was the Capper-Volstead Act (2)

1922

Tried to encourage small famrers to form cooperatives and join together to sell and market their goods

What was the Agricultural Credits Act?

1923

Gave loans to farming cooperatives as a way of incentivising farmers to work together

Large agricultural businesses were best able to take advantages of loans - produced more effectively

Agricultural Credits Act: Smaller Farmers

Put pressure on smaller farmers - they were reluctant to take on more debt

McNary-Haugen Bill (2)

1924

Meant to aid farmers by buying their surplus to sell to foreign markets

McNary-Haugen bill: Reality (2)

Coolidge vetoed twice in 1927 and 28, seeing it as intervening too much

He believed farmers should have to stand on their own two feet

Agricultural Marketing Act

1929

Introduced by Herbert Hoover - Watered down McNary-Haugen bill

Aimed to buy farm surpluses to keep farmers in business

Introduced too late for many farmers