The rise of populism or the Populist Party a third party taking 5 states in the 1892 election was the product of the western grain farmer speaking out against the corporation and monopolistic control of transportation fees, grain processing fees, government currency polices and banking practices. The Free Silver coinage issue began to gather momentum and that issue dominated the corporation corrupted election of 1896.The populists then fused with the democrats for solidarity about the money issue and is faintly remembered in historys faded pages. The election of 1892 shows James Weaver the populist presidential candidate gained most of his support from the western grain growing areas.
A new refinement of capitalistic agriculture had developed in the upper Mississippi basin. Here there was sectional specialization. By the time populism appeared there were three such sections, each dominated by a single type of farm system: corn livestock farming in a wide belt stretching from Ohio westward through Iowa and gradually pushing into eastern Kansas and Nebraska: dairy farming, found principally in Wisconsin and southeastern Minnesota: and grain farming, predominantly wheat, which had been pushed out into a broad crescent sweeping from Kansas, through Nebraska, the Dakotas, and western Minnesota.The corn livestock belt system felt the pressure of transportation costs and trade monopolies to a far less degree than did wheat farmers. The evils or disadvantages of the situation in which the wheat farmer were caught were all too apparent. Far from the market and with no competition in transportation, the freight on grain practically ate up not only the profit but the value of the grain as well. The extremely complex character of the machinery which controlled the grain trade, with local buyers, local elevator fees, commission merchant fees, terminal elevator charges, millers profits, etc., all taking a toll from the passing stream of grain. Thus the grain farmer in comparison with corn and dairy farming not only found his margin of profit disappearing, but was able to put his finger on many practices which appeared unjust and which if remedied would leave to him a greater share of the value of his product.
There was also the question of credit. Here too the grain growing west was at a disadvantage. In the first place being only recently settled there had not been time to pay off the loans and mortgages by which farmers had capitalized their anticipated earnings, this step usually being necessary to secure the farm plant. Secondly because of the less stable profits and being at the mercy of monopolists they were less able to pay higher interest rates caused by contraction of the currency.
