History of Oceania

What factor contributed to the creation of farmers alliance?

Economic Factors:

a. Low Crop Prices: Farmers faced declining crop prices due to overproduction, competition from large-scale farms, and market speculation. This led to a reduction in their income and made it challenging for them to make a sustainable living.

b. High Costs: Farmers were saddled with high costs for essentials such as transportation, storage, and farm equipment. This, combined with low crop prices, left them with little profit.

c. Lack of Market Power: Individual farmers had limited bargaining power when it came to selling their produce to large corporations and middlemen. This resulted in further exploitation and unfair trade practices.

Social and Political Factors:

a. Political Injustice: Farmers felt that the government and political system favored big businesses over small-scale farmers. They believed they were not represented and their concerns were not addressed.

b. Lack of Access to Credit: Farmers struggled to access credit and loans from banks and other financial institutions, which hindered their ability to invest in their farms and improve productivity.

c. Transportation Challenges: Inadequate infrastructure and poor transportation systems made it difficult for farmers to transport their produce to markets, resulting in spoilage and additional expenses.

d. Social Isolation: Farmers often lived in remote rural areas, feeling disconnected from the decision-makers in urban areas. This sense of isolation contributed to their desire to form collective alliances.