Question

How did overproduction affect farmers in the 1920s?

Farmers produced fewer goods.
Farmers used new technology.
Farmers could not pay their debts.
Farmers reacted to increased demand.

Answer 1

Overproduction in the 1920s significantly affected farmers, primarily resulting in the situation where **farmers could not pay their debts**. During this time, advancements in agricultural technology and increased mechanization allowed farmers to produce more crops than ever before. However, with the overproduction of goods, prices for agricultural products fell dramatically. Many farmers, having taken out loans to expand their operations and invest in new equipment, found themselves unable to sell their products at prices high enough to cover their expenses and debts. This financial strain led to widespread economic difficulties in the agricultural sector, contributing to the financial struggles that many farmers faced during the latter part of the decade and into the Great Depression.