A Level History - America - Practice Exam

What was a major cause of the decline in farming income in the 1920s?

1. Increased demand for agricultural products

2. Mechanized overproduction

3. Strict government regulations limiting production

4. Rising costs of farming equipment

The correct answer is: Mechanized overproduction

The decline in farming income in the 1920s can be largely attributed to mechanized overproduction. After World War I, advances in agricultural technology and mechanization allowed farmers to produce crops more efficiently and in larger quantities. Initially, this increase in production seemed beneficial; however, it ultimately led to an oversupply of agricultural products in the market. As supply exceeded demand, prices for these products plummeted, significantly reducing farmers' income. The context of the 1920s is important here as it was a time of economic growth in other sectors, but agriculture was stuck in an unsustainable cycle of overproduction. Despite rising costs of farming equipment and other economic pressures, the root issue was the sheer volume of crops being produced, which far outstripped the market's ability to absorb them, leading to the decline in prices and income for farmers.