The late 19th century saw American farmers facing economic hardships due to falling crop prices, high transportation costs, and mounting debt. These challenges led to widespread discontent and the rise of farmers' protest movements across the country.

In response, farmers organized politically through groups like the Grange and Farmers' Alliances. This culminated in the formation of the Populist Party in 1892, which advocated for reforms like "free silver" and government ownership of railroads to address farmers' economic woes.

Economic Factors and Farmers' Protest Movement

Economic factors of farmers' protest movement

• Declining crop prices due to overproduction from increased mechanization (reapers, combines) and land cultivation, along with reduced demand for American crops in Europe
• High transportation costs as railroads charged exorbitant fees for shipping crops to market, leaving farmers feeling exploited by railroad monopolies (Southern Pacific, Union Pacific)
• Mounting debt and mortgages taken out by farmers to purchase land and equipment, with falling crop prices making loan repayment difficult and leading to widespread foreclosures
• Deflationary monetary policy under the gold standard limited money supply causing deflation which increased real value of debts making it even harder for cash-strapped farmers to repay loans
• Crop-lien system in the South trapped farmers in a cycle of debt, forcing them to put up future crops as collateral for loans

Farmers' Political Organization and the Populist Party

Political organization of farmers

• Grange movement organized by farmers to promote their interests and provide mutual aid, lobbying for regulation of railroads and grain elevators to combat price gouging
• Farmers' Alliances emerged in the 1870s and 1880s to advocate for farmers' rights, demanding government action to address the dire economic issues faced by the agricultural sector
• Populist Party (People's Party) formed in 1892 as a dedicated political party representing farmers and rural interests, advocating for a range of economic and political reforms to help struggling farmers

Goals and impact of Populist Party

• Populist Party platform centered on "free silver" policy to increase money supply and promote inflation, making it easier for farmers to pay off debts
• Demanded government ownership of railroads (Northern Pacific) and telegraph systems (Western Union) to reduce transportation costs and break up monopolies
• Called for progressive income tax to shift tax burden to the wealthy and provide relief to farmers and working class
• Advocated direct election of U.S. Senators to increase political accountability and give more power to the people
• Populist Party had significant impact, winning several state and congressional elections in the 1890s
• Populist ideas influenced Democratic Party to adopt some positions like free silver in their platform
• Raised national awareness of economic inequality and need for reform to address challenges of farmers and working class
• Many Populist ideas like direct election of Senators (17th Amendment) and progressive income tax (16th Amendment) were later adopted as national policies, showing lasting impact of the movement

Populist Economic Policies and Ideology

• Agrarianism: Populists emphasized the importance of farming and rural life as the foundation of American society and economy
• Bimetallism: Advocated for the use of both gold and silver as monetary standards to increase the money supply
• Subtreasury plan: Proposed government-run warehouses to store crops, allowing farmers to hold their harvest for better prices
• Greenbacks: Supported the issuance of paper currency not backed by gold to increase the money supply and combat deflation
• Omaha Platform: The 1892 Populist Party platform that outlined their key demands and principles for economic and political reform