What problems did farmers face in the 1920s?

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Poverty in the 1920s

Some groups did not participate fully in the emergent consumer economy, notably both African American and white farmers and immigrants. While one-fifth of the American population made their living on the land, rural poverty was widespread. Despite agricultural overproduction and successive attempts in Congress to provide relief, the agricultural economy of the 1920s experienced an ongoing depression. Large surpluses were accompanied by falling prices at a time when American farmers were burdened by heavy debt. Between 1920 and 1932, one in four farms was sold to meet financial obligations and many farmers migrated to urban areas.

Restrictive immigration laws, aided by a resurgence of nativism in America in the 1920s, contributed to an atmosphere hostile to immigrants. The Emergency Quota Act of 1921 discriminated against immigrants from southern and eastern Europe. The National Origins Act of 1924 completely excluded Japanese and other Asian immigrants and further reduced those admitted from southern and eastern Europe.

For further information, see the following entries in the "Guide to People, Organizations, and Topics in Prosperity and Thrift" or use these terms to search the collection: Agricultural Credits Act of 1923 and McNary-Haugen Farm Legislation.

For materials on farmers and rural populations, see: The Country Gentleman, Thrift for Women. Presented by the Household Science Department of the Illinois Farmers' Institute (1930), and Extension Work Among Negroes Conducted by Negro Agents (1923).

For materials on immigrants, see: The United American. A Magazine of Good Citizenship and Americanization through Homemaking, by Pearl Idelia Ellis (1929).

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Groups in society who did not prosper during the “Roaring Twenties”

For many Americans, the 1920s was a decade of poverty. More than 60 per cent of Americans lived just below the poverty line.

Generally, groups such as farmers, black Americans, immigrants and the older industries did not enjoy the prosperity of the “Roaring Twenties”.

Groups and sectors of people who didn't prosper in the 1920s boom

Farmers

Farmers had prospered during the war but were among those who suffered most during the boom. The income of farmer was around $275 per year. (The national average was $750.) By 1928, half of farmers were living in poverty.

This was due to several factors:

  • They were producing more crops than needed, so prices fell.
  • There were fewer overseas markets because of the tariff war and a surplus of food in other countries.
  • Prohibition led to a 90 per cent fall in demand for barley.
  • Changing tastes in food in America meant there was a 25 per cent decline in demand for wheat.

Farm income fell from $22 billion in 1919 to $13 billion in 1929.

Overproduction and under consumption of agricultural products meant 3 million families earned less than the national average.

Farmers borrowed money from the banks to be able to survive.

They got into crippling debts which reached $2 billion in 1929. Many had to sell their farms with roughly 600,000 farmers losing their farms in 1924 alone. Many became hobos who wandered around America looking for any type of work.

Others tried to survive by using more mechanisation and expanding the acreage they farmed, but this only made the over-production worse.

They refused to set up co-operatives to regulate production levels because they hated government interference.

They were also the worst hit by the failure of small banks. On average, 500 banks failed each year.

However, not all farmers suffered. The fruit growers in California and Florida and the large grain farmers of the Mid-West made profits.

It was small crop growers, sharecroppers and labourers who lost out most.

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What were the main problems facing farmers in the 1920s?

Much of the Roaring '20s was a continual cycle of debt for the American farmer, stemming from falling farm prices and the need to purchase expensive machinery.

What kinds of problems did farmers face?

What kind of problems do farmers face?.
Cope with climate change, soil erosion and biodiversity loss..
Satisfy consumers' changing tastes and expectations..
Meet rising demand for more food of higher quality..
Invest in farm productivity..
Adopt and learn new technologies..
Stay resilient against global economic factors..

What problems did farmers face in the 1920s Chapter 14?

What problems did farmers face in the 1920s? The demand for food dropped, so farmers' incomes went down. They could not afford payments on their farms, so they lost their land.