Even as the stock market surged in the 1920s, with stock prices more than quadrupling in value, an economic depression was beginning to take hold on American farms.
They had prospered during the 1910s.
Europe’s devastation from World War I towards the end of the decade, had brought a surge in export demands for farm products.
So, farmers had borrowed money to buy new equipment and additional farmland to boost production.
But when Europe recovered from World War I, the international demand for farm products fell.
Surpluses of farm products drove prices down, making farmland less valuable.
Farm foreclosures, once rare, became commonplace.
Then, in 1930, things got much worse.
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