Farmers who had borrowed money to expand during the boom couldn’t pay their debts. As farms became less valuable, land prices fell, too, and farms were often worth less than their owners owed to the bank. Farmers across the country lost their farms as banks foreclosed on mortgages. Farming communities suffered, too.

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Overproduction, or oversupply, means you have too much of something than is necessary to meet the demand of your market. The resulting glut leads to lower prices and possibly unsold goods. That, in turn, leads to the cost of manufacturing ” including the cost of labor ” increasing drastically.

The main cause of the Wall Street crash of 1929 was the long period of speculation that preceded it, during which millions of people invested their savings or borrowed money to buy stocks, pushing prices to unsustainable levels.

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New technology, including chemicals and larger tractors, allowed farmers to work larger areas of land with less labor. Government policies encouraged farmers to scale up their operations. Farmers were also motivated by economies of scale”the economic advantage of producing larger numbers of products.

Farming increased the yield of food plants and allowed people to have food available year round. Animals were domesticated to provide meat. With agriculture, people could settle down, so that they no longer needed to carry all their possessions (Figure below).

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The Agricultural Revolution of the 18th century paved the way for the Industrial Revolution in Britain. New farming techniques and improved livestock breeding led to amplified food production. This allowed a spike in population and increased health. The new farmingtechniques also led to an enclosure movement.

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Commercial farming means the intensive cultivation of arable land by the raising of agricultural or horticultural products as a principal source of the owner’s livelihood.

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Farming Practices Some produce milk. Others raise animals for meat, milk or egg production. Many farms produce combinations of crops and livestock. Increasing numbers “farm” fish, shellfish and crustaceans as demand for seafood outstrips supply in the wild.

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Majority of farmers are poor with low education, vulnerable to physical and economic risks, and financially stressed with zero savings or worse, indebtedness. As agriculture is in itself a risky financial and social enterprise, the pressure for the farming families to stay afloat is saddling.

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Another reason for the disappearing family farm is the ever-increasing disparity between dwindling income and soaring expenses. Net farm income in 2000 dropped to $39.7 billion”the lowest since 1995.

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In the early 1930s prices dropped so low that many farmers went bankrupt and lost their farms. In some cases, the price of a bushel of corn fell to just eight or ten cents. Some farm families began burning corn rather than coal in their stoves because corn was cheaper.

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The number of U.S. farms continues to decline slowly In the most recent survey, there were 2.02 million U.S. farms in 2020, down from 2.20 million in 2007. With 897 million acres of land in farms in 2020, the average farm size was 444 acres, only slightly greater than the 440 acres recorded in the early 1970s.

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The inability to raise money has been the number one problem with farmers for as long as farmers have been around. It is one of the reasons why most people today who engage in small scale farming also engage in a job outside of farming.

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The debts Black farmers consequently accrued cost them millions of acres, which were then snapped up by white buyers. In 1920, the number of Black farmers peaked at nearly 1 million, constituting 14 percent of all farmers. But between 1910 and 1997, they lost 90 percent of their property.

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While most Americans enjoyed relative prosperity for most of the 1920s, the Great Depression for the American farmer really began after World War I. 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.

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The Agricultural Adjustment Act (AAA) was a federal law passed in 1933 as part of U.S. president Franklin D. Roosevelt’s New Deal. The law offered farmers subsidies in exchange for limiting their production of certain crops. The subsidies were meant to limit overproduction so that crop prices could increase.

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How did the expansion of railroads help to create a cattle boom? Access to railroads, in the Midwest, helped to create a cattle boom. The railroads gave ranchers easy access to large cities and cattle could be shipped more easily. How did the cattle boom lead to economic prosperity for many new towns in the West?

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The development of the railroad made it profitable to raise cattle on the Great Plains. In 1860, some five-million longhorn cattle grazed in the Lone Star state. Cattle that could be bought for $3 to $5 a head in Texas could be sold for $30 to $50 at railroad shipping points in Abilene or Dodge City in Kansas.

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The westward development of the railroad system shortened cattle drives. The first rail-transported cattle were shipped from Abilene, Kansas in 1867. Other rail centers were soon established. Thereafter, thousands of animals were moved along the various cattle trails which led to these shipping points.

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Railroads created the market for ranching, and because for the few years after the war that railroads connected eastern markets with important market hubs such as Chicago, but had yet to reach Texas ranchlands, ranchers began driving cattle north, out of the Lone Star state, to major railroad terminuses in Kansas, …

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Barbed wire was invented by J F Glidden in 1874. This invention meant that large areas could be fenced cheaply. Cattle were now enclosed on ranches and no longer roamed the Plains. As a result fewer cowboys were needed and the long drive was a thing of the past.

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How did the expansion of railroads help to create a cattle boom? Access to railroads, in the Midwest, helped to create a cattle boom. The railroads gave ranchers easy access to large cities and cattle could be shipped more easily.

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Railroads allowed more trade outside the state, brought business into the area, improved The economy in the area, and helped towns grow. It began enclosing the open range, which hurt cattle drives, it also started fence cutting wars.

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The Railroad Boom The main reason for the transcontinental railroads to be built was to bring the east and west together. The building of these railroads caused huge economic growth throughout the United States. The railroad created opportunities for everyone across the US.

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The cattle Boom of the 1870s was caused by the spread of ranching from Texas and across the grassy plains.

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The Cattle Boom started mainly with the Texas longhorn which was the time when Spanish settlers in the 1700s brought their cattle to California and Texas. Later, the cattle were mixed with English breeds and created the Texas longhorn. These types of cattle were very tough and had horns up to five feet across.

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Texas cattle owners drove their herds along cattle trails to the railroads. Cattle drives made up an important part of the cattle industry. Cowhands led the herds over miles of terrain to railroads where they could be shipped east. Life on the trail required hard work and long days.

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How did the cattle boom lead to economic prosperity for new towns in the west? It helped to develop and grow towns in the west. Service businesses developed (hotels, saloons,etc.). Cattle could be bought cheap but sold at a much higher price, allowing Ranchers to make a lot of money.

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One of the primary effects of railroads on farmers is the decrease that railroads bring to farmers’ transportation costs. Most obviously, it becomes cheaper to transport crops to the cities and ports. In addition, farmers can buy and transport industrial goods back to farms, including farm equipment and cattle.

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The invention of barbed wire made it possible to build fences without lumber and protect railroad tracks from stampeding animals. The first barbed wire was produced in 1868 and early barbed wire had to be manufactured by hand. Two strands of wire were wound together and barbs were then threaded through the wires.

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Cattle boom. explosion of cattle ranchers and associated jobs that used the grasslands of the Great Plains to breed, raise, butcher and sell cattle. Factories of the West as large-scale cattle ranching pushed out small ranchers. Significant reason for America’s economic growth and population explosion in the West.

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Why did cattle ranching expand in the US? Increased demand for beef.

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How did the railroads encourage economic growth in the West? They connected the goods produced in one part of the country with consumers in another part of the country. The great northern railway was more successful than the northern pacific railroad due to low fares.

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The railway allowed people to flock to cities and allowed people to travel newer places as well. Business boomed due to the railway with the mass increase of people and goods. All in all, the railway was a major success in all aspects of the Industrial Revolution especially in time and distance.

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The railroads made it possible to ship cattle to the North East where the meat market boomed because of the lack of beef in the north. The cost of cattle was almost tripled in the north, giving the cattleman a great profit.

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The cattle boom brought cattle drives, popularity and expansion in the West. The price of beef was high which led to an economic rise. The cows had to be transported to the North for the railroads. The west became a cattle kingdom which contained cattle drives, cow hands, and cow towns.

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Although the era of the cowboy slowly came to an end as ranchers found that railroads were a faster and more economical way of transporting cattle for sale, the era of ranching and cattle production continued. Ranching wasn’t the only industry with a major impact on the Texas economy during the late 1800s.

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How did cattle trails affect Texas railroads? led to the development of particular railroad lines. You just studied 14 terms!