USA HISTORY

Detailed explanation-1: -It was difficult for farmers to get out of debt because they had to plant a lot of crops and so the price of their crops went down and this made them in debt. They had to take loans and sometimes the loans made them pay large interest rates which also put them in debt.

Detailed explanation-2: -The small farmers often borrow money from money lenders. In return they are often forced to sell their produce to the money lenders at a price which is less than market price. Moreover small farmers find it difficult to avail bank loans. These reasons cause the farmers to fall into debt trap.

Detailed explanation-3: -Drought. Drought has been established as the single greatest culprit of agricultural production loss.

Detailed explanation-4: -Poverty: Poverty is perhaps a major cause for rural indebtedness. The low level of rural incomes, the uncertain and primitive farming of small landholdings makes it impossible to meet the needs required for their living. Often, the rural people take debts to meet these needs.