Unit 13: The Farm Crisis

How To Use This Page

On this page, you will find a curated collection of videos, resources, guides, and opportunities for exploration that are tied specifically to Iowa and the Farm Crisis of the 1980s. Educators and lifelong learners can use the compelling and supporting questions to guide their learning and focus their exploration on the major topics. The lectures, videos, featured content, and readings can be completed at each learner's own pace and will provide necessary knowledge and background to craft and deliver Iowa History lessons in a K-12 classroom.

Every unit of this professional development series is tied directly to a companion student course. This course can be viewed at the Iowa Department of Education's Iowa e-Learning Central.

Compelling and Supporting Questions

Compelling and supporting questions are designed for each unit and the materials below will provide content and context for teachers, students, and lifelong learners.

Compelling Question

How did the Farm Crisis affect Iowans?

Supporting Questions

1. What was the Farm Crisis of the 1980s?
2. What short-term and long-term causes led to the Farm Crisis?
3. What national and global economic forces contributed to the Farm Crisis in Iowa?
4. How was Iowa’s economy affected by the Farm Crisis?
5. How did Iowans persevere during the Farm Crisis?

Overview

In the early 1970s, Iowa farm families experienced economic prosperity.The farm economy boomed as farm production grew, exports expanded, and land values increased. The state's total population was over two million with 42 percent of Iowans living on farms or in small towns. By 1990, the state lost population overall, with the decline in rural Iowa being the most substantial. One in four farms was no longer in operation in 1989. As farmers expected the prosperity of the 1970s to continue, a combination of economic, political and technological factors led to the greatest crisis in rural communities since the Great Depression of the 1930s. Many farmers expanded their acreage through land purchases or purchased new equipment with loans. However, when the Federal Reserve raised their lending, in an effort to stabilize inflation, it increased the cost of borrowing money for everyone in the United States. The effect on farmers, their families and others in rural America was devastating.

International factors contributed to a decline in farm income. In 1979 the Soviet Union invaded Afghanistan and in protest President Jimmy Carter penalized the USSR by suspending U.S. grain shipments. Other nations filled this need and the Soviets suffered little. Though President Ronald Reagan removed the embargo when he took office in 1981 the farm economy had been damaged as exports declined. In addition, the embargo caused a glut of corn in the U.S. leading to a drop in prices from over $3.15 a bushel in 1979 to under $2.15 in 1982, and under $1.55 in 1987.The U.S. dollar also gained in value with a 26 percent increase from 1980 to 1984. This increase made U.S. goods including crops more expensive on the international market. Debt and a decline in income led to extreme emotional and financial stress as farms failed.

Farmers across the nation protested and sought relief from their state governments and the federal government. Farmers participated in national "tractorcades" to Washington, D.C. organized by the American Agriculture Movement in 1979 and 1980. Iowa groups active in the 1980s were the PrairieFire Rural Action Network led by Rev. David Ostendorf, Iowa Farm Unity Coalition led by Dixon Terry, and the Iowa Farm Bureau Federation led by Bob Joslin and Merlin Plagge. PrairieFire organized "white cross" protests at auctions and courthouses beginning in 1984 in Wayne County to object to farm foreclosures. The group held rallies across the state through the mid-1980s including events in Audubon, Story, and Tama Counties. Hilton Coliseum in Ames was the site of the National Crisis Action Rally on February 27, 1985. Musician Willie Nelson and others founded Farm Aid in 1985. The organization held the first Farm Aid concert in Champaign, Illinois on September 22, 1985. Fifty-four acts performed before a crowd of more than 75,000 people and raised more than seven million for farm families. Iowa never instituted a farm foreclosure moratorium as was done in the Great Depression. Political leaders and advisors sought to reform the loan and credit system. Rural banks started closing and millions of dollars were lost by people in town and on the farm. The Farm Credit System was reformed and bailed out by the federal government in 1985. A 1987 New York Times article reported in, "Iowa, state health figures show that about 47 farmers have killed themselves each year since 1980." Food pantries sprang up in rural communities to offer hunger relief. Government cheese giveaways provided important protein, as did livestock donation programs. Iowa State University Extension offered counseling by telephone on its "Rural Concern Hotline." From October 1, 1984 to December 31, 1985, the hotline communicated with 11,900 people. The university also held meetings and support groups across that state that interacted with more than 50,000 Iowans. In 1986, Congress introduced Chapter 12 Bankruptcy which allowed family farmers to restructure their finances and avoid liquidation or foreclosure. In 1987, the Agriculture Credit Act authorized a four billion financial assistance package for financially vulnerable institutions of the Farm Credit System. Prices rebounded, debt was slowly reduced, and the 1980s Farm Crisis abated.

Think Like a Historian

In this video, distinguished professor of history Pamela Riney-Kehrberg discusses historical thinking skills like causation, continuity and change over time, and evaluating conclusions. 

Major Topics of Study

When learning about Iowa and Farm Crisis, some of the key areas to cover might include:

• Causes of the Farm Crisis
• Grain embargo
• Short and Long-Term Impacts on Iowa farmers
• Response of Government Leaders in Iowa and Washington, D.C.
• Effects for other Industries

Notable Iowans

Exemplary and significant people in Iowa history from this time period could include many of the below figures. Wherever possible, links to Iowa's digital biography provide opportunities for further exploration.

State Historical Society Objects, Documents, and Photos

Objects, documents, and photographs from the State Historical Society of Iowa are excellent catalysts for further inquiry in the classroom or for independent lifelong learners. 

Video Resources

If you are looking for longer, more detailed discussions or lectures related to the themes discussed in this unit, the following resources provide further context and information.

Further Reading

This curated collection of readings allow teachers, students, and lifelong learners to explored a curated collection of primary sources, articles, books, and essays that supplement and provide depth to the topics covered in this unit.