FARMERS IN DEBT
Elaborate machinery was expensive, and farmers often had
to borrow money to buy it. When prices for wheat were higher, farmers could
usually repay their loans. When wheat prices fell, however, farmers needed to raise
more crops to make ends meet. This situation gave rise to a new type of farming
in the late 1870s. Railroad companies and investors created bonanza farms,
enormous single-crop spreads of 15,000–50,000 acres. The Cass-Cheney-
Dalrymple farm near Cassleton, North Dakota, for example, covered 24 square
miles. By 1900, the average farmer had nearly 150 acres under cultivation. Some
farmers mortgaged their land to buy more property, and as farms grew bigger, so
did farmers’ debts. Between 1885 and 1890, much of the plains experienced
drought, and the large single-crop operations couldn’t compete with smaller
farms, which could be more flexible in the crops they grew. The bonanza farms
slowly folded into bankruptcy.
Farmers also felt pressure from the rising cost of shipping grain. Railroads
charged Western farmers a higher fee than they did farmers in the East. Also, the
railroads sometimes charged more for short hauls, for which there was no com-
peting transportation, than for long hauls. The railroads claimed that they were
merely doing business, but farmers resented being taken advantage of. “No other
system of taxation has borne as heavily on the people as those extortions and
inequalities of railroad charges” wrote Henry Demarest Lloyd in an article in the
March 1881 edition of Atlantic Monthly.
Many farmers found themselves growing as much grain as they could grow,
on as much land as they could acquire, which resulted in going further into debt.
But they were not defeated by these conditions. Instead, these challenging con-
ditions drew farmers together in a common cause.
424 C
HAPTER 13
•Homestead Act
•exoduster
•soddy
•Morrill Act
•bonanza farm
1. TERMS & NAMES For each term or name, write a sentence explaining its significance.
MAIN IDEA
2. TAKING NOTES
Create a time line of four events
that shaped the settling of the Great
Plains.
How might history be different if one
of these events hadn’t happened?
CRITICAL THINKING
3. EVALUATING
How successful were government
efforts to promote settlement of the
Great Plains? Give examples to
support your answer. Think About:
• the growth in population on the
Great Plains
• the role of railroads in the
economy
• the Homestead Act
4. DRAWING CONCLUSIONS
Review the changes in technology
that influenced the life of settlers on
the Great Plains in the late 1800s.
Explain how you think settlement of
the plains would have been different
without these inventions.
5. IDENTIFYING PROBLEMS
How did the railroads take
advantage of farmers?
event one
event two event four
event three
▼
Bonanza farms
like this one
required the labor
of hundreds of
farm hands and
horses.
Vocabulary
extortion: illegal
use of one’s
official position or
powers to obtain
property or funds
Vocabulary
mortgage: to
legally pledge
property to a
creditor as
security for the
payment of a loan
or debt