In Brook, there wasn't much progress with the investigation, so Niall hopped on his small motorcycle and made his way to the neighboring Mannington, to visit the old colleague of the cheap "old father" from before.
When they saw Niall, they were overly enthusiastic. It just so happened that it was lunchtime, and they quickly invited him to sit down and eat. Niall, unable to refuse the warm hospitality, sat down and joined them for the meal.
Looking around, Niall saw that the family had an elderly mother—though "elderly" was a bit of an exaggeration, as she was only in her fifties. The father who passed away two years ago had been nearing seventy. This trend of older men marrying younger women seemed quite common these days, for reasons unknown. The family also had a couple and four children; the eldest daughter was already fifteen, though her face was covered in freckles, which slightly lowered her attractiveness.
After a simple lunch, Niall brought up the topic of farming in the spring. Last year, the drought in the American Midwest had ruined crops, making it a wasted year for farmers. The drought had lasted all the way until winter, but fortunately, things were looking better this year. At least by the end of winter, the snowfall had reached about two-thirds of the usual amount. If this trend continued and the spring saw two decent rains, then both oats and potatoes could be planted as usual.
Farmers who had just received agricultural aid had some money left, enough to buy fertilizer. As for seeds, some purchased them, while others used seeds saved from the previous year. Niall wasn't sure whether there was much difference between the two, so he didn't comment on it.
However, Niall wasn't here to hear about how people had money to farm. He was looking for a fresh face, someone who might have heard about the state-run agricultural fund and whether it offered small agricultural loans to farmers.
Following Niall's instructions, the person assured him that it would be no problem—he could simply go to the county administrative committee and ask. After all, coal miners and capitalist coal mine owners had a long history of "friendly consultations," and they were experienced at dealing with the "big bosses." The person added that there was no fear of the "big bosses." In fact, some of them had been killed and turned into a bloody pulp. Asking a few questions was no big deal.
Niall felt reassured and reminded him to make sure to note down the conditions for loans and whether farmers could qualify. There was no need to ask too many other questions.
The next day, before Niall could even visit Mannington for an answer, the person arrived in Brook by coal truck to deliver the news. It was no surprise, and it was quite common: farmers could borrow money!
But not without complications. There were numerous forms to fill out. For an ordinary small farmer, hiring someone who knew how to fill out the forms would cost several dollars, and with such a small loan of thirty or fifty dollars, it seemed not worth the trouble.
In addition to the many forms, there was also a cumbersome qualification check. They evaluated the value of the land, the house, whether there was any money in the bank account, whether there were any strong laborers in the family, and whether anyone worked in the mines. The process was full of trivialities. Someone unfamiliar with it might think they were applying for a loan of several thousand dollars.
Despite all these complications, over a million dollars had already been lent out, and the amount continued to rise. Niall was curious—who was receiving these loans? So many farmers had gone through the paperwork and received approval from the fund?
The answer: the loans were going to "sharecroppers!"
These weren't the sharecroppers from the Far East, but farmers in the U.S. agricultural production system who had signed production contracts with large agricultural companies. They received an advance payment from the company, and then grew the crops the company required. This type of farmer was common in the East and South, with a long history.
These farmers typically grew cash crops like tobacco, sugarcane, cotton, corn, and wheat, which had a high market value and were heavily exported. Agricultural companies could secure these crops at a lower price by offering advances to farmers.
In theory, this wasn't a bad deal for the farmers. Although the crops were sold at a lower price, the farmers received cash upfront, which ensured their livelihood and relieved them of the worry of buying machinery, tools, seeds, and fertilizer. It also eliminated the difficulty of borrowing money, which was especially important in East Asia. Many small self-sufficient farmers started with small loans and quickly found themselves losing their land and becoming farm laborers.
However, there was a huge problem with this economic model: what happens if there's a drought, like last year?
The farmers received the advance payment, but the agricultural companies expected their crops in the fall. If the farmers couldn't deliver the goods, it would be considered a breach of contract, leading to financial penalties. If they had some savings, they might sell everything they owned to cover the loss. But for those with little money, they might end up forfeiting their land and themselves to the agricultural companies, becoming "slaves" or "tenant farmers."
By providing loans to these farmers who were closely tied to agricultural monopoly companies, the state of West Virginia was effectively helping these large companies shift their risks.
From a more cynical perspective, the state government was assisting agricultural monopolies in further consolidating land and strengthening their control over the farmers.
These companies no longer had to bear any risk. They could just watch as farmers borrowed money. If the farmers faced any problems, such as a flood, drought, or locusts, the companies would simply take advantage of the situation and expand their holdings.
The state-backed loans ensured that as long as a farmer had land, they would at least break even. For example, if a piece of land was worth a hundred dollars, the state might only lend fifty. If the farmer couldn't repay, the land would be seized and sold.
Meanwhile, agricultural companies would purchase the land, gaining control over the tenant farmers, and could present themselves as "saviors" by continuing to offer advances and rent the land back to the farmers.
This is a well-synchronized system. In a few years, most of the agricultural land used for cash crops in West Virginia would be under the control of agricultural monopolies.
The government was quite happy with this arrangement. The self-sufficient farmers would be wiped out, and the large mechanized farms would take over, allowing one person to manage more land than a small farmer ever could. The bankrupt farmers would be forced into cities to work, providing the labor force needed for industrial development.
As long as there was a steady stream of cheap labor flowing into the cities, industrial capitalists in the cities would be happy, and the government's tax revenue would increase.
It was a win-win situation for everyone!