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October 1929 the stock market crashed and sent farmers into a downward spiral. Crop prices hit an all time low and farms started closing shop as the banks came knocking for their debts. With farmers not being able to break even or even feed their families the farm defaulted back to the banks. -
The agricultural act of 1933 set up the emergency farm mortgage act. This was able to provide over $200 million for refinancing farm mortgage ms through federal banks. It also lowered interest rates and gave more leniency to farmers on paying their debts back. It even provided direct rescue loans to farmers in emergency situations. -
As the drought is worsening and the dust bowl is spreading and bringing the worst drought we have ever seen. Farms are closing shop due to not being able to produce a crop. The Franzier-Lemke Farm bankruptcy act is approved. This provided farmers with some security where banks couldn’t dispose of farmers in times of duress. -
The drought service relief provided a way for ranchers to get some breathing room. They began buying cattle in designated emergency areas for $14 to $20 a head. They were the unfit cattle for human consumption, 50 percent at the beginning were destroyed the rest were given to federal surplus relief.