Why did farm prices drop so drastically in the 1920s?
A) New methods of farming and an increased demand for American crops in Europe caused a boom in production that pushed prices down.
B) Federal laws restricted prices from rising above established levels, and Coolidge as well as the general public showed little interest in the "farm problem."
C) Competition from overseas was keeping prices down, as European farms produced far more than American farms, especially in the western plains.
D) The end of the Great War led to a dramatic decrease in the demand for crops, though production levels remained high, with surplus crops.
E) The most successful farms had become far simpler and less mechanized due to the emphasis on military technology over farming technology.

Question

Quizplus · Accepted Answer

The end of the Great War (World War I) led to a decrease in demand for agricultural products as European countries resumed their own agricultural production. American farmers, who had increased production to meet wartime needs, found themselves with excess supply and no corresponding demand, leading to a drop in prices.

Why Did Farm Prices Drop So Drastically in the 1920s