In the 1920s, the prices of agricultural products fell and farmers faced difficult situations. The system was oversupplied and farmers were involved in a debt cycle.
In the 1920s, with economic growth and the jazz era gone, America had entered the Great Depression. The last decade had been one of learning and exploration. America had become a world power and was no longer just another former British colony.
After the end of World War I, relief efforts kept the demand for US agricultural products high. Farmers continued to generate more expected demand and prices in order to remain stable. But when Europe began to recover from the war, US agriculture began a long recession that led to a crisis during the Great Depression. Much of the 1920's was a continuous debt cycle for American farmers due to falling agricultural prices and the need to buy expensive machinery. With huge debt and improved agricultural practices and equipment to make it easier to cultivate more land, farmers found it difficult to reduce production. Declining agricultural value adversely affected the value of land, and farmers owed far more banks than their land value.
The correct answer is option C.
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