key term - Farming crisis

Definition

The farming crisis refers to a period of economic hardship faced by farmers, often characterized by plummeting crop prices, increased debt, and financial instability. In Georgia, this crisis was significantly exacerbated during the Great Depression, leading to widespread poverty among agricultural workers and contributing to a decline in the overall economy. The struggles of farmers during this time highlighted the vulnerabilities of the agricultural sector, which was heavily reliant on cotton and other cash crops.

5 Must Know Facts For Your Next Test

1. During the Great Depression, cotton prices dropped drastically, sometimes falling below the cost of production, which left many farmers unable to sustain their livelihoods.
2. Many farmers in Georgia turned to sharecropping as a means to survive, but this often led to a cycle of debt that perpetuated poverty rather than alleviating it.
3. The farming crisis resulted in many rural families facing starvation and severe malnutrition due to their inability to produce or purchase sufficient food.
4. Government programs such as the Agricultural Adjustment Act were implemented to stabilize crop prices and provide relief to struggling farmers during this time.
5. The impact of the farming crisis extended beyond individual farmers, contributing to broader economic issues in Georgia, including high unemployment rates and a decrease in overall economic activity.

Review Questions

• How did the farming crisis during the Great Depression specifically impact Georgia's agricultural economy?
  • The farming crisis during the Great Depression severely impacted Georgia's agricultural economy by causing cotton prices to plummet. Many farmers found themselves unable to cover production costs, leading to widespread bankruptcies and increased poverty. This crisis not only affected individual farmers but also had a ripple effect throughout rural communities as local businesses suffered from decreased spending power.
• What role did sharecropping play in the continuation of economic struggles for farmers during the farming crisis?
  • Sharecropping played a significant role in perpetuating economic struggles for farmers during the farming crisis because it often trapped tenants in a cycle of debt. While it provided a temporary solution for some landless farmers, they frequently ended up owing more than they could repay due to high interest rates and exploitative practices by landowners. This system made it difficult for many families to escape poverty and improved their financial situation.
• Evaluate how government interventions like the Agricultural Adjustment Act aimed to address the challenges posed by the farming crisis in Georgia and their overall effectiveness.
  • Government interventions such as the Agricultural Adjustment Act aimed to alleviate the challenges of the farming crisis by attempting to stabilize crop prices and provide financial support to struggling farmers. By paying farmers to reduce crop production, these policies sought to create scarcity and drive prices up. However, while some farmers benefited from these programs, many still faced hardships due to the complexities of implementation and lingering economic issues that were not fully addressed by these measures.

Related terms

Great Depression:

A severe worldwide economic downturn that lasted from 1929 until the late 1930s, causing massive unemployment and widespread hardship.

Dust Bowl: A severe drought in the 1930s that affected the Great Plains and worsened the economic situation for farmers by destroying crops and displacing many farming families.

Sharecropping:

A system of agriculture where landowners allow tenants to farm their land in exchange for a share of the crops produced, often leading to cycles of debt for the tenants.