Final answer:
Farmers faced high shipping costs for 'short hauls' due to limited transportation options, market dynamics, and economic pressure from banks.
Step-by-step explanation:
Farmers faced high shipping costs for 'short hauls' even if the distances were relatively small due to several factors:
- Limited transportation options: In newly settled parts of the country where market economies had not fully reached, farmers often had limited access to transportation options such as railroads, which could offer lower shipping costs. This lack of competition allowed railroads to charge high rates for shipping farm equipment and livestock.
- Market dynamics: As more farmers moved westward and produced larger crops, the market became flooded with agricultural products. This oversupply drove prices down, making it difficult for farmers to make a profit even on relatively short distance shipments.
- Economic pressure from banks: Farmers faced the ever-present threat of debt and farm foreclosure. They often had to borrow money from banks with high interest rates to obtain necessary farm necessities. This added financial burden made it even more challenging for farmers to afford high shipping costs for short hauls.