Why didn’t American Farmers share in the prosperity of the 1920s boom?

1. Why didn’t American Farmers share in the prosperity of the 1920s boom? American agriculture 1918~1929

2. During the First World War American Farmers had made big profits • Demand for American foodstuffs in Europe had soared • American farmers had made big profits • However to increase their profit they had attempted to increase their levels of production • In many cases they had borrowed money to buy new land and machinery

3. After the War ended • European countries attempted to restore their own agriculture so demand for American foodstuffs dropped. • As a result prices fell and many farmers found that they could not pay the loans they had taken out. Rent and mortgages also rose. • In attempt to pay their debts many farmers borrowed more money using their farms as collateral for the loan.

5. Other factors working against American farmers • New man-made fibres decreased the demand for cotton • European countries could buy cheaper food from Canada, Russia and Argentina • American trade tariffs stopped foreign countries exporting manufactured goods to the USA. Therefore they had fewer dollars with which to buy American wheat and cotton

6. Also • Smaller farmers could not compete with large planting corporations who used mass production techniques • The US population fell so there was less domestic demand for food • Increased car ownership meant less demand for horse feed • A wider diet meant a move away from wheat and beef

7. As a consequence • Many farmers lost their land • By 1924 600,000 were bankrupt • Over 1 million farm workers had left the land. In desperation they turned to the American Government for help

8. So, what did the Government do? • The Government did not want to interfere with the ‘free market’ but they did: • Make it easier for farmers to borrow money • Tariffs were further increased on foreign imports • Research was carried out into pests and droughts None of these things really helped the farmers