cash crops like rice tobacco and indigo
The main crop of poor subsistence farmers in the South was cotton. Cotton was a vital cash crop for these farmers, as it could be sold for profit and was in high demand for textiles.
Tobacco
Small farmers could lose their farms
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.
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.
For the farmers own Needs
for the farmers own needs -apex
for the farmers own needs -apex
for the farmers own needs -apex
The farmers planted a huge crop.
low prices for crops debt to merchants reliance on a single crop
The crop lien system was detrimental for small farmers because it often trapped them in a cycle of debt. Farmers would take loans from merchants to buy supplies and were required to use their future crops as collateral. If crop yields were poor or prices fell, they struggled to repay their debts, leading to further borrowing and financial instability. This system effectively limited their economic independence and entrenched poverty in rural areas.