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Because the crop lien system would sometimes run out of money to the point that they would be broke, they would scam and have these poor farmers in debt
Van Von
Betty Wilderman
Small farmers could lose their farms
Wiki User
∙ 8y agoSharecroppers and tenant farmers who did not own the land they worked obtain supplies and food on credit from local merchants. They held a lien on the cotton crop and the merchants and landowners were the first ones paid from its sale. What was left over went to the farmer. The system ended in the 1940s as prosperity returned and many poor farmers moved permanently to cities and towns, where jobs were plentiful because of the war.
The crop-lien system gave farmers a line of credit with a local merchant for supplies, with repayment to be made when a farmer's crop was sold. Crop-liens were fairly common in the late nineteenth and early twentieth centuries.
Wiki User
∙ 11y agoFarmers would make an arrangement with the bank under which the would loan money to purchase their supplies pay the loan off at harvest with a portion of the crop . . . a large portion, plus interest. The farmer could never catch up and remained dirt poor. The crop lien system kept many farmers in debt to merchants and banks in much the same was a sharecropper was always in debt to the land owner. They could never catch up and earn any actual profits.
Wiki User
∙ 12y agoCrop liens used to be a form of credit. They were utilized by farmers from the time of the American Civil war to about the 1920's. Crop liens now are papers of security against a farmer who owes a debt that has not been satisfied.
Wiki User
∙ 12y agoThe often lost their farms for lack of money
Anonymous
Because the crop lien system would sometimes run out of money to the point that they would be broke, they would scam and have these poor farmers in debt
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How did the farmers alliances change the way small farmers operated?
They allowed farmers to band together against railroads and business interests
During the agricultural revolution of the 18th century farmers increased the crop production by using?
Crop rotation
Western farmers sold as their main cash crop?
Fruit
What was the name given to poor southern white small farmers after the Civil War?
After the US Civil War, many poor white farmers became sharecroppers, farming land owned by the wealthy planters in exchange for a percentage of their crop's yield.
What was the result of Indian farmers growing cotton a cash crop rather than food?
widespread famine and starvation
Why was the crop lien system bad for small?
Small farmers could lose their farms
How did the crop lien system trap some farmers in a cycle debt?
Because the crop lien system would sometimes run out of money to the point that they would be broke, they would scam and have these poor farmers in debt
How did crop lien system trap some farmers in a cycle of debt?
Because the crop lien system would sometimes run out of money to the point that they would be broke, they would scam and have these poor farmers in debt
What was the system that enabled storekeepers to extend credit on small farmers' crops and thus keep them permanently in debt?
The Crop-Lien System enabled storekeepers to extend credit on small farmers' crops, which kept them permanently in debt.
Which is true of the crop lien system of the 1880s?
The system kept many farmers in debt to merchants and banks.
What was the crop lien?
Sharecroppers and tenant farmers who did not own the land they worked obtain supplies and food on credit from local merchants. They held a lien on the cotton crop and the merchants and landowners were the first ones paid from its sale. What was left over went to the farmer. The system ended in the 1940s as prosperity returned and many poor farmers moved permanently to cities and towns, where jobs were plentiful because of the war. The crop-lien system gave farmers a line of credit with a local merchant for supplies, with repayment to be made when a farmer's crop was sold. Crop-liens were fairly common in the late nineteenth and early twentieth centuries.
What system provided cheap labor in Louisiana?
crop lien system
Who did the crop-lien system benefit the most?
The crop lien system benefitted the banks and the landowners the most. The tenants were kept in debt and impoverished and could hardly ever improve their situations.The crop lien system benefitted the banks and the landowners the most. The tenants were kept in debt and impoverished and could hardly ever improve their situations.The crop lien system benefitted the banks and the landowners the most. The tenants were kept in debt and impoverished and could hardly ever improve their situations.The crop lien system benefitted the banks and the landowners the most. The tenants were kept in debt and impoverished and could hardly ever improve their situations.
Who did the crop-lien system benefit most?
get your lazy arse off of here
What was the crop lien system bad for bankers?
They often could not collect on debts
Why was the crop lien system so bad for merchants?
Their businesses failed if they could not collect debts.
How did growing cash crops hurt small farmers?
Prices for in-demand cash crops are set in commodity markets. Therefore, small farmers relying of the crop will suffer low prices if a bumper crop is in excess elsewhere.
