How were farmers affected by the railroads?

Steel rails linked the farms and the mills. The railroads provided the efficient, relatively cheap transportation that made both farming and milling profitable. They also carried the foodstuffs and other products that the men and women living on the single-crop bonanza farms needed to live.



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The railroads also fleeced the small farmer. Farmers were often charged higher rates to ship their goods a short distance than a manufacturer would pay to transport wares a great distance.

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In addition to the cycle of overproduction, tariffs were a serious problem for farmers. Rising tariffs on industrial products made purchased items more expensive, yet tariffs were not being used to keep farm prices artificially high as well. Therefore, farmers were paying inflated prices but not receiving them.

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The railroads provided the efficient, relatively cheap transportation that made both farming and milling profitable. They also carried the foodstuffs and other products that the men and women living on the single-crop bonanza farms needed to live.

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Railroads helped farmers by shipping crops to new markets but hurt farmers by charging high shipping rates.

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How did the railroads take advantage of farmers? Railroads took advantage of farmers because they charged Western farmers a higher fee than they did farmers in the East. Also, railroads sometimes charged more for short hauls than long hauls.

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Misguided railroad regulation was a major factor behind the rail industry's decline. For example, the ICC set maximum and minimum rates for rail shipments, with rates often unrelated to costs or demand.

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Railroads discriminated in the prices they charged to passengers and shippers in different localities by providing rebates to large shippers or buyers. These practices were especially harmful to American farmers, who lacked the shipment volume necessary to obtain more favorable rates.

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