Module 2: Agriculture in the Great Depression

Essential Questions

Why are some people rich and other people poor?

Is the economy fair?

What role should a government play in its citizens' economic welfare? 

Agriculture in the Great Depression

In the 1920s, American farmers faced a series of challenging conditions that profoundly impacted their livelihoods. Following World War I, many farmers had initially prospered due to increased demand for agricultural products to support the war effort. However, once the war ended, this demand plummeted as European agriculture resumed and the market became saturated. The rapid shift led to a significant decline in crop prices, leaving many farmers unable to cover their debts and operating costs. The financial strain was compounded by the availability of credit, which many farmers had relied on during the war years, resulting in a cycle of debt that became increasingly difficult to manage.

Overproduction was another critical issue during this decade. In an effort to capitalize on the high prices during the war, farmers expanded their acreage and increased production. However, this led to a surplus of crops, driving prices even lower and forcing farmers into a desperate situation. Many found themselves producing more than the market could bear, and as prices continued to fall, their profit margins shrank to unsustainable levels. The inability to sell crops at a fair price meant that many farmers faced foreclosure on their lands, as they could not meet their financial obligations. This crisis not only affected individual farmers but also had a ripple effect on rural communities and the broader economy.

Compounding these difficulties was the onset of the Dust Bowl in the 1930s, a devastating environmental disaster that further ravaged the agricultural landscape. Poor farming practices, combined with severe drought conditions, led to massive soil erosion and dust storms that made large swathes of farmland unproductive. Many farmers, particularly in the Great Plains, were forced to abandon their fields, and millions of people were displaced as they sought better opportunities elsewhere. The Dust Bowl not only intensified the economic struggles of farmers but also underscored the need for sustainable agricultural practices. Together, these factors created a perfect storm of hardship for American farmers during the 1920s, setting the stage for a broader economic crisis that would culminate in the Great Depression.