UNIT 4
A Nation at War
LESSON 10
A Period of Prosperity
why did farm prices fall in the 1950's
Farm prices fell in the 1950s due to a combination of factors:
1. Technological advancements: The introduction of new farming technologies, such as mechanized equipment and chemical fertilizers, led to increased agricultural productivity. This resulted in an oversupply of farm products, which drove down prices.
2. Government policies: After World War II, the US government continued its policy of price supports for farm products, but the support prices were often set below the cost of production, causing financial difficulties for many farmers.
3. Market changes: The growth of suburbs and the movement of people from rural to urban areas led to a reduced demand for farm products. Additionally, as more people had access to refrigeration and transportation, food imports increased, further driving down domestic farm prices.
4. International competition: The rebuilding of Europe and Japan after the war allowed those regions to become more self-sufficient in food production, reducing the demand for American agricultural exports.
Overall, these factors created a situation in the 1950s where farm production outpaced demand, leading to a decline in farm prices. This adversely affected the farming industry, forcing many farmers to take on debt or leave their family farms altogether.