B. Factors disrupting the ecology of the Cotton South 1. South remains rural in contrast to North. Rise of Market a. Plantation system is organized for maximizing market production. Tobacco, rice, and indigo decline by 1780s. Between 1820 and 1860 world demand grows at 5 percent per year.
Sugar production rises in Mississippi Delta between Red River and Mississippi River.
During Civil War, other countries supply cotton to Great Britain. High prices after Civil War encourage rebuilding, and South recovers market share by 1878. World demand slackens to 1.3 percent annual growth by 1895. Continued cotton production in South begins to depress prices. Shortage of banks and credit after Civil War leads to increase in sharecropping, tenant farming, and crop lien systems.