Key Economic Challenges for Farmers (1865-1900)

Economic Trends Affecting Farmers

• Falling Prices: Rising production in the U.S. and other countries led to lower prices for crops (e.g., wheat, cotton).

  • Example: 1867 Wheat: $2.01 → 1889 Wheat: $0.70, 1867 Corn: $0.78 → 1889 Corn: $0.28.

• Impact on Farmers: High interest on mortgages and the need to increase output resulted in increased debts and more foreclosures.

  • Resulted in more farmers becoming tenant farmers/sharecroppers.

Rising Costs

• Monopolistic Corporations: Prices for manufactured goods remained high due to monopolies.

• Middlemen: Wholesalers and retailers deducted profits before farmers could sell.

• Railroad Charges: Discriminatory rates for shipping; higher rates for short hauls on lines without competition.

• Unfair Taxation: Farmers faced heavy local property taxes but enjoyed no tax relief on income from stocks/bonds. Tariffs viewed as additional burdens.

Collective Action by Farmers

• National Grange Movement: Founded in 1868 by Oliver H. Kelley as a social and educational platform for farmers.

  • Spread quickly in the Midwest and started promoting economic and political activism.

  • Established cooperatives to enhance farmers' economic power against middlemen and trusts.