USA HISTORY

Detailed explanation-1: -When the production costs of crops exceed the selling prices, then the farmers suffer. They lose their money rather than profit. It is very hard for them to gain the benefits of excess production. They become disappointed about future production.

Detailed explanation-2: -There were tremendous economic difficulties associated with Western farm life. First and foremost was overproduction. Because the amount of land under cultivation increased dramatically and new farming techniques produced greater and greater yields, the food market became so flooded with goods that prices fell sharply.

Detailed explanation-3: -At the end of the 19th century, about a third of Americans worked in agriculture, compared to only about four percent today. After the Civil War, drought, plagues of grasshoppers, boll weevils, rising costs, falling prices, and high interest rates made it increasingly difficult to make a living as a farmer.

Detailed explanation-4: -Explanation. Overproduction is the accumulation of unsalable inventories in the hands of businesses. Overproduction is a relative measure, referring to the excess of production over consumption. The tendency for an overproduction of commodities to lead to economic collapse is specific to the capitalist economy.