Agricultural Depression and Farm Distress Flashcards

What was the agricultural depression in the 1920s?

A long slump when farm prices and incomes fell, causing hardship for many US farmers.

Why did demand for US farm goods fall after World War I?

Europe grew its own food again and stopped buying as much from the USA.

How did overproduction hurt farmers?

Too much grain and cotton on the market made prices drop, so farmers earned less.

How did new farm machines add to farm problems?

New machines raised output but cost money. Many farmers took loans and then struggled to repay them when prices fell.

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What did the Fordney–McCumber Tariff (1922) mean for farmers?

It raised import taxes and made it hard for Europeans to sell to the USA. They had less money to buy US farm exports.

What happened when farmers could not repay their loans?

Banks took their farms, and many small rural banks failed.

Which crops were hit by low prices in the 1920s?

Main crops like wheat, maize (corn), and cotton all fell in price.

Who were sharecroppers and how were they affected?

Sharecroppers farmed land they did not own and paid with a share of the crop. Low prices left them in deep poverty, especially in the South.

What was the McNary–Haugen plan?

A plan for the government to buy farm surpluses to raise prices. President Coolidge vetoed it.

How did farm distress change where people lived?

Many farm families left the countryside and moved to towns and cities to find work.

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