GREENWICH, N.Y. — The 1970s were a turbulent time for the United States. Events like the Watergate Scandal, the Vietnam War, and the Energy Crisis all caused division and difficulty for Americans. The American farmer similarly experienced many undulations and changes throughout the 70s. A farming boom occurred early in the decade, however as the 1980s approached cracks were visible in this boom which would foreshadow the difficulty that farmers would face later on.
The early 1970s brought a spike in grain prices that was beneficial to farmers. During that time period the Soviet Union experienced multiple years of drought and crop failure in 1971-1972. It was estimated that the Soviet Union were going to be around 700 million bushels short of grain. Sensing an opportunity to increase exports and improve relations with their Cold War adversary, President Richard Nixon’s administration and the USDA orchestrated a deal for the Soviet Union to purchase grain from U.S. exporting companies.1
The Soviets agreed to a multi-year contract and the U.S. sold around 434 million bushels of wheat, 255 million bushels of feed grains, and 37 million bushels of soybeans in 1972. It was considered the largest sale of grain in U.S. at that time.2 The deal emptied grain stocks and prices soared. In the following years wheat prices doubled and corn prices tripled.3
This increase in prices coincided with a change in farm policy from the Nixon administration. Throughout the 1950s and 1960s American farms produced a tremendous surplus of commodities, particularly grain. To keep a check on supply, the U.S. government would directly pay farmers to keep some acreage fallow.4 Beginning in the 1970s this switched to a “set aside” policy in which the USDA could require certain acreage for conservation purposes.5 But the number of acres set aside were considerably less than in years past opening up more land for production.
With this change in policy and greater demand for American farm commodities due to the deal with the Soviets, the USDA advocated increased production on a greater number of acres. Earl Butz, the hard-nosed and at times controversial Secretary of Agriculture at that time, toured the country exhorting farmers to produce more and expand their operations. Butz became famous for advising the American farmer to, “get big or get out” and to plant “fencerow to fencerow.”6 The 1973 Farm Bill further encouraged greater production. The key element of the bill was an institution of a “target price” payment system which would pay farmers the difference between the market price of commodities and the higher target price, as opposed to direct income payments leaving ground fallow.7
Farmers took the admonition and grew their operations planting more wheat, corn, and soybeans. For instance, in 1972 farmers planted 55 million acres of wheat in the U.S. Just two years later the planted wheat acreage jumped to 71 million in 1974. In 1970 the acres planted of major commodities was 227 million. In 1980 the acreage planted to major commodities had grown to 289 million.8
Farmers often went into debt to purchase more land and expand their farms. The 1971 Farm Credit Act increased federal land banks’ lending authority making it easier for them to award loans to farmers. However, with commodity prices being so good many felt it was a necessary expenditure or a risk worth taking.9
The early and mid-1970s were in fact great years for farmers. The high commodity prices, high production, and more export markets brought in record income to American farmers. For instance, overall farm income leapt from $2.3 billion in 1972 to $19.6 billion in 1973.10 In the mid-1970s income would peak at around $33 billion.11 In the years 1973 and 1974 per capita farm income exceed urban income in the United States for the first time ever.12 (It is worth noting that livestock farmers did not share in this boom due to the high feed prices they had to pay for.)
Unfortunately, these good times did not last. By the late 1970s commodity prices had dropped and the export market for grain had returned to normal as well. However, farmers will still producing high levels of crops and beginning to have difficulties covering production costs. In 1977 a group of farmers formed the American Agriculture Movement which organized a strike to draw attention to these issues. In December of 1977 farmers converged on state capitols across the country to demand parity, the income needed to pay for farm costs and make a living farming. While the strike did bring attention to the problems facing farmers it did not lead to any policy changes. It did, however, foreshadow some of the issues farmers would face in the 1980s.13
Changes in policy and a thaw in Cold War tensions created an environment for farmers to expand and make record income in the farming boom of the early 1970s. While this boom is what is most remembered about agriculture in the decade, aspects of it ended up sowing the seeds of problems which would come to fruition in the next decade. The 1970s are also remembered today for the changes in policy that encouraged farmers to “get big” in their operations. A change which is still felt in agriculture today.
1 Jonathan Coppess, “A Brief Review of the Consequential Seventies,” farmdoc daily (9):99, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, May 30, 2019, https://farmdocdaily.illinois.edu/2019/05/a-brief-review-of-the-consequential-seventies.html.
2 Ibid.
3 Iowa PBS, “The 1970s See Good Times in Agriculture,” YouTube, 2013, 0:52, https://www.youtube.com/watch?v=Azxkm-3g1D4.
4 “Agriculture 1973: Overview.” In CQ Almanac 1973, 29th ed., 285-86. Washington, DC: Congressional Quarterly, 1974, http://library.cqpress.com/cqalmanac/cqal73-1228226.
5 “Farm Boom of the 1970s,” Wessel’s Living History Farm, accessed January 12, 2023, https://livinghistoryfarm.org/farminginthe70s/money_02.html.
6 Ibid.
7“Agriculture 1973: Overview.” In CQ Almanac 1973, 29th ed., 285-86. Washington, DC: Congressional Quarterly, 1974, http://library.cqpress.com/cqalmanac/cqal73-1228226.
8 Jonathan Coppess, “A Brief Review of the Consequential Seventies,” farmdoc daily (9):99, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, May 30, 2019, https://farmdocdaily.illinois.edu/2019/05/a-brief-review-of-the-consequential-seventies.html.
9 Ibid.
10 “Farm Boom of the 1970s,” Wessel’s Living History Farm, accessed January 12, 2023, https://livinghistoryfarm.org/farminginthe70s/money_02.html.
11 “Farm Strike,” Wessel’s Living History Farm, accessed January 12, 2023, https://livinghistoryfarm.org/farminginthe70s/money_04.html.
12 Iowa PBS, “The 1970s See Good Times in Agriculture,” YouTube, 2013, 1:37, https://www.youtube.com/watch?v=Azxkm-3g1D4.
13 “Farm Strike,” Wessel’s Living History Farm, accessed January 12, 2023, https://livinghistoryfarm.org/farminginthe70s/money_04.html.
Chandler Hansen grew up and lives in Easton, NY. He is a graduate of Gordon College where he earned a bachelor’s degree in History. He serves as a writer and editor for Morning Ag Clips.