USA HISTORY

Detailed explanation-1: -Overproduction in agriculture-as farming techniques improved and demand from Europe dropped, farmers were producing too much food. This caused a fall in prices, and drop in profits, so thousands of farmers had to sell their farms.

Detailed explanation-2: -With heavy debts to pay and improved farming practices and equipment making it easier to work more land, farmers found it hard to reduce production. The resulting large surpluses caused farm prices to plummet. From 1919 to 1920, corn tumbled from $1.30 per bushel to forty-seven cents, a drop of more than 63 percent.

Detailed explanation-3: -Farmers Were Stuck With Surplus For farmers in particular, the Great Depression basically began after World War I. During that war, U.S. farmers had increased food production to feed European allies. Afterward, prices and demand dropped, and farmers were stuck with an oversupply they couldn’t sell.

Detailed explanation-4: -While most Americans enjoyed relative prosperity for most of the 1920s, the Great Depression for the American farmer really began after World War I. Much of the Roaring ‘20s was a continual cycle of debt for the American farmer, stemming from falling farm prices and the need to purchase expensive machinery.