1. What was happening in farming in the 1920s that contributed to the Great Depression?

Overproduction and falling crop prices were major factors contributing to the agricultural depression of the 1920s, which in turn played a significant role in the Great Depression. Here's a breakdown:<br /><br />* **Overproduction:** During World War I, European demand for American agricultural products was extremely high. Farmers increased production significantly to meet this demand, often taking out loans to expand their operations and buy new equipment like tractors. After the war, European agriculture recovered, and demand for American crops dropped sharply. However, American farmers continued to produce at high levels, leading to a massive surplus.<br /><br />* **Falling Crop Prices:** This surplus, coupled with decreased demand, caused crop prices to plummet. Farmers found themselves earning less for their crops than it cost to produce them. They were unable to repay their loans, leading to widespread farm foreclosures and bankruptcies.<br /><br />* **The Dust Bowl:** While not directly caused by the economic situation, the Dust Bowl of the 1930s exacerbated the problems faced by farmers in the Great Plains. Severe drought and unsustainable farming practices led to massive dust storms that destroyed crops and made life incredibly difficult for farmers already struggling financially.<br /><br />* **Decreased Purchasing Power:** As farmers' incomes declined, they had less money to spend on goods and services produced in other sectors of the economy. This decrease in purchasing power contributed to the overall economic downturn.<br /><br />In short, the agricultural depression of the 1920s, characterized by overproduction and falling crop prices, weakened the American economy and made it more vulnerable to the crash of 1929 and the subsequent Great Depression.<br />