Essay on Farmer Dilemma

609 Words Apr 4th, 2007 3 Pages
1. Railroads- Railroads in each area were often controlled by one company, enabling those railroads to charge what they wanted. Railroads were the only way for many western farmers to get their produce to market and high prices were always charged. Railroads controlled storage, elevators, and warehouses so the prices the farmers paid were very high.

Middlemen- Middlemen set the price of the produce low when they sold because the market price was unpredictable.

Bankers- High interest rates caused the farmers to pay even more when they didn't have the money to pay.

Trusts- Trusts such as McCormick, makers of farm machinery, set the price for the farm machinery. Many farmers relied on McCormick farm machinery to grow crops, so the
…show more content…
Indeed, Document A states that farmers overproduced which caused prices to fall, but it is very evident and far more explanation is given for reasons such as railroads, banks, and the lack of government help.

4. Because farmers could only afford one machine most times, most farmers specialized in what crop the machine worked best with.

5. The value of money appreciated 300% so that the value of the farmers' goods decreased to ½ of what it used to be. 6. This could be both beneficial or harmful with the deflation. They might not have enough money to pay for things. On the other hand, the interest/mortgage rates were the same.

7. Farmers might suggest that a remedy for deflation is to have more government involvement such as paying farmers a certain amount to NOT grow crops to ensure a profit (or some earnings) for that year. Because prices fall in a deflated economy, and the price for crops is already set low, farmers could not plant as much crop either. Additionally, they could petition for the government to set the price in proportion to their income.

8. There would have been strong forces to depreciate the currency in the late nineteenth century because

9. A college such as The University of Illinois could provide farmers with the knowledge of new technology that could give them better crops for possibly less cost and a way to limit production. Additionally, it could teach farmers how to respond to new market

More about Essay on Farmer Dilemma

Open Document