Overproduction & Mechanisation

• Fall in Demand

  • New man made materials
  • Prohibition
  • Tractors
  • 1921 Tariffs
  • Few export opportunities
• In 1924, 600,000 people lost farms.

  1 million fewer farmers in 10 years.

  2/3s of farmers operated at a loss
• Wheat prices fell to less than $1 per bush

  1/3 labour force worked on farms

  no insurance
• Overproduction

  • Agricultural credit act 1923 - borrow money.
  • Tractors - farm more land with fewer people
  • New pesticides + feed

  (Had to lower prices)