B) declined
Farm incomes declined during the 1920s due to overproduction and a reduction in demand for farm goods.
Farmers were producing at a high level from World War I. Once the war ended, European countries began to produce their own food again. Farmers continued to overproduce but had lost their market for their goods. This caused the farmers to see a decline in income because they were not selling enough to cover their debts.
As the 1920s progressed, farm incomes declined. This implies the correct answer is B.
Farm crises took place in the 1920s; it was a period of agricultural recessions, low farm incomes including low crop prices.
The farm crises started in the 1920s due to the increased production for military needs during World War 1. This period was marked as a decade of poverty. About 60% of the country’s population at that time were living below the poverty line.
When the crises started, the supply of farm produce to the market was very high and the prizes were high as well. Credits were also available for the consumer and the producer. The crop prices began to decline around June 1920.
Crops prizes began to fall because of the following factors:
Another factor that caused the decline of crop prizes was the taxes imposed on other countries.
Foreign countries affected by tariffs war ignore American farm produce and consumed their local farm produce.
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