Is this statement true or false? by the mid-1800s, farming families were buying products such as cloth that they had made for themselves in earlier times.

This statement is true. During the Industrial Revolution lives of the people changed drastically, especially for those in the North. The North became more urbanized and it consisted of mostly commercial farms and factories. The farmers were now raising livestock for the economic purposes and used the money earned to buy the things they used to manufacture themselves before.

The answer is true.
The lives of people living in the North really changed when the Industrial Revolution came. They became more urbanized and they develop farms and factories. The farmers planted livestock and earn money, and these earned money will help them buy things to use in their production.