1. Farming Problems
In the late 19th Century

2. Farm Problems: North, South, and West
By end of 1800s- farmers were a minority in American society
Number of U.S. farms actually doubled between and 1900
People working on farms declined from 60% to 37% in that same time span
What would explain that?

3. Changes in Agriculture
Farming became increasingly commercialized
More dependent on large, expensive machines vs. human labor
Larger farms were run like factories
Small, marginal farms could not compete or many had to begin specializing
Concentrated on raising one or a few cash crops

4. Falling Prices
Increased global production drove prices down for wheat, cotton, and other cash crops
As prices fell, farmers could only produce more to pay off mortgages and credit
Increased production only lowered prices more
More debts, foreclosures = more independent farmers forced into tenant farming/sharecropping
Wheat and Corn Prices per Bushel, 1867 and 1889
Year
Wheat
Corn
1867
$2.01
$0.78
1889
$0.70
$0.28

5. Rising Costs
Industrial corporations kept prices high on manufactured goods
Wholesalers and retailers took their cut before selling to the farmers
Railroads and warehouses charged high rates for shipment and storage of grain
Would even charge more for short trips on lines with no competition
Local and state governments taxed property and land heavily but not income from stocks and bonds
Protective tariffs meant northern manufacturers could keep prices high on the equipment, tools, etc. they sold to southern farmers

6. Fighting Back- National Grange Movement
Organized in 1868 by Oliver H. Kelley as a social, educational organization for farmers and their families
Became active in economics and politics to defend farmers against unfair business practices
Established cooperatives- businesses owned and run by farmers to save the costs charged by manufacturers or retailers
Also lobbied for laws regulating the rates charged by railroads and warehouses

7. Fighting Back- Interstate Commerce Act (1886)
States laws regulating railroad rates ran into legal problems
Especially with railroads that crossed state lines
States could only regulate local or short-haul trips, so railroads adapted by raising their long- haul (interstate) rates
Wabash v. Illinois (1886) ruled that individual states could not regulate interstate commerce
Nullified many of the state regulations achieved by the Grangers

8. Fighting Back- Interstate Commerce Act (1886)
Interstate Commerce Act of 1886 first federal effort to regulate the railroads
Required railroad rates to be “reasonable and just”
Also set up the Interstate Commerce Commission (ICC)
First federal regulatory agency
ICC had the power to investigate and prosecute discriminatory business practices
ICC ironically helped the railroads more than the farmers
Lost many of its cases in federal courts in 1890s, while the cases it did win only helped railroads stabilize rates and curtail destructive competition

9. Fighting Back- Farmers’ Alliances
Farmers formed state and regional groups known as farmers’ alliances
Educated farmers about scientific methods and always had the goal of economical and political action
Serious potential for creating an independent national political party
million farmers belonged to farmers’ alliances
Both poor white and black farmers joined the movement

10. Fighting Back- The Ocala Platform
National Alliance met in Ocala, Florida to address problems of rural America
Created a platform that supported the following:
Direct election of U.S. senators
Lower tariff rates on imported goods
Graduated (progressive) income tax
New banking system regulated by the federal government

11. Fighting Back- The Ocala Platform
Also demanded Treasury notes and silver be used to increase the amount of money in circulation
Could cause inflation and raise crop prices
Proposed federal storage for farmers’ crops and federal loans
Would free them from dependency on manufacturers and creditors
Stopped short of becoming a political party but their backing of local and state candidates who supported their goals proved decisive in 1890 elections
Many reform ideas of the Grange and farmers’ alliances would become part of the Populist movement later on in the decade…

12. ?
What was the main reason why even though the number of farms in the U.S. doubled between , the number of workers on farms declined during that same time period?
What did farmers do to try and make more money in the face of global overproduction? What happened as a result?
What unfair business practices did farmers have to compete against?
How did the ruling in Wabash v. Illinois (1886) lead to the Interstate Commerce Act of 1886?
What was the major objective of farmers’ alliances?