Farm owners faced many problems firstly because of the war exports were increased but as soon as the war ended countries stopped importing from the US and there was overproduction. The US decreased the prices on crops so people would buy more of them but since it could not all be bought and eaten, overproduction remained.
American agriculture was facing competition from Argentina and Canada, some countries stopped buying from them or reduced their imports from America. Another reason that the Europeans didn’t buy the American products was the high tariffs America had placed. The prices went down so people would buy crops, but the farmers didn’t earn much thus they started producing even more crops and this also contributed to overproduction.
When the farmers didn’t earn much, they started taking loans in order to provide for themselves and when those loans couldn’t be paid back many farms were seized by the banks. This lead to a lot of unemployment and directly led to poverty and homelessness.
Farming did not do well in the 1920s. US agriculture had expanded during the First World War to sell food to Europe, but afterwards countries returned to growing their own a grain. The expansion had led to overproduction and now there was too much food on the market. Farmers found it more and more difficult to sell their produce.
The agricultural economy of the 1920s experienced an ongoing depression. Large surpluses were accompanied by falling prices at a time when American farmers were burdened by heavy debt. Between 1920 and 1932, one in four farms was sold to meet financial obligations and many farmers migrated to urban areas. With one-fifth of the American population making their living on the land, rural poverty was widespread.Apart from white farmers, African American and immigrants found this decade tough. During the 1920s more than 600,000 farmers went bankrupt. There was also competition from Canada, which also produced large amounts of weheat. Prohibition hit the production of barley, which was not needed for the production of beer and spirits. So American farmers were over producing food, and the prices they got were very low. European countries would not buy from the USA, because the USA was not buying from Europe. A lot of farmer's had problems making their mortgage payments, paying their bills, and receiving low interest loans.
The farm policy of FDR was enacted as the Agricultural Adjustment Act, which the Supreme Court declared unconstitutional in 1936. It created an Agricultural Adjustment Administration (AAA) which was to enforce the principle of parity for which farmers had fought during the 1920s. Parity meant increasing farm income to what it was in the early 1900s. This was to be accomplished by restricting farm production. Growers of certain products, like wheat, corn,rice, hogs, etc., were paid subsidies to keep some of their land out of production. This would lower the amount of the production of the farm product but increase the price of the product in the market place. Consumers would pay more and more of the money would go to the farmer, in theory. Crops were plowed under and some excess animals were slaughtered but not sent to market. Results of this policy were mixed. Many could not understand how destroying crops and animals would help at a time when people were not getting enough to eat and had little money to pay for the increased prices. Some farms even had to trim their faming employees. This policy was saved (after the Supreme Court decision) by the Soil Conservation Act which kept parity and the limitation of production alive. Farm income did rise a bit, but not to the extent the administration hoped. Farm problems continued after World War II.
Falling grain prices and foreign competition (part of the reason prices fell).
Overproduction
Foreign competition
In the 1920s, one problematic economic issue that resulted in the depressed state of agriculture was overproduction. Another problem was falling prices.
they faced over production and there land was pretty much worthless
In the USA. Depression in rural areas and the Dust Bowl
Over production of agricultural goods.
Drought
During the 1920s the farmers' debts increased as a result of the crash of the stock markets. This is the period in history which was known as the Great Depression.
In both periods of time, farmers encountered a lot of problems regarding pests and parasites. They also had to put up with a rise in unknown crop diseases.
Demands for crops fell as farmers debt rose.
Demand for crops fell as farmers' debts rose.
Demand for crops fell as farmers' debts rose.
During the 1920s the farmers' debts increased as a result of the crash of the stock markets. This is the period in history which was known as the Great Depression.
industrialization(:
foreign competition
Job opportunities
Drought, Dustbowl, Great depression (meaning less selling and less money to purchase equipment.)
Farmers overproduced farm crops.
Farmers overproduced farm crops.
In both periods of time, farmers encountered a lot of problems regarding pests and parasites. They also had to put up with a rise in unknown crop diseases.
it was mainly the 'Blacks', coal miners and farmers.
the debts were erased because of the dsl tarrifs
Industrialization indostrailisim Drought rising crop prices
Farmers overproduced farm crops.