Presentation on theme: "Why didnt American Farmers share in the prosperity of the 1920s boom? American agriculture 1918~1929."— Presentation transcript:
Why didnt American Farmers share in the prosperity of the 1920s boom? American agriculture 1918~1929
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
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.
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
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
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
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