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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

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Van Von

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3y ago

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Related Questions

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 are some Advantages and disadvantages of crop lien system?

The crop lien system allows farmers to secure loans based on their future crop yields, providing immediate access to credit and enabling them to finance necessary inputs like seeds and equipment. However, it can also lead to a cycle of debt, as farmers may struggle to repay loans if crop yields are poor or prices fall. Additionally, the system can create dependency on lenders, limiting farmers' financial autonomy and potentially leading to exploitative practices. Overall, while it offers short-term financial relief, the long-term implications can be detrimental to farmers' economic stability.


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.


What was the crop lien system bad for bankers?

They often could not collect on debts


Who did the crop-lien system benefit most?

get your lazy arse off of here


Why was the crop lien system so bad for merchants?

Their businesses failed if they could not collect debts.