- Overproduction: As agricultural technology improved, farmers were able to produce more food than ever before. This led to a surplus of crops, which drove down prices.
- Falling prices: The prices of agricultural commodities, such as wheat and corn, fell sharply in the late nineteenth century. This was due to a number of factors, including increased competition from other countries, improved transportation, and changes in consumer preferences.
- High transportation costs: Farmers were often located far from markets, and transportation costs ate up a large portion of their profits.
- High interest rates: Farmers often had to borrow money to finance their operations, and interest rates were high in the late nineteenth century. This made it difficult for farmers to make a profit.
- Lack of access to credit: Many farmers did not have access to credit, which made it difficult for them to purchase the land, machinery, and other resources they needed to be successful.
The Grange, a national farmers' organization founded in 1867, proposed several solutions to the problems facing farmers. These included:
- Establishing cooperatives: Cooperatives allowed farmers to pool their resources and buy supplies and equipment in bulk, which saved them money.
- Creating marketing boards: Marketing boards helped farmers to get a fair price for their crops by negotiating with buyers.
- Passing legislation: The Grange lobbied for legislation to protect farmers, such as the Interstate Commerce Act of 1887, which regulated railroad rates, and the Sherman Antitrust Act of 1890, which prohibited monopolies.
The Grange also advocated for education and research to help farmers improve their farming practices. These efforts helped to improve the economic conditions of farmers in the late nineteenth century.