During World War 1, prices rose and the international demand for crops soared. Farmers started to take out loans and plant more crops. After the war, the demand for crops dropped and prices of crops declined by 40% and more. The production of crops were boosted while holding a hope that more people would purchase crops but it only depressed their prices further. Farmers eventually fell into debt and had a hard time paying off their loans because the demand stopped. Farms and lands were lost when the banks foreclosed and took their property to pay off their debt. Many rural banks began to fail as farmers weren't able to pay off their debt. Congress decided to help out farmers with a piece of Legislation called "The McNary-Haugen Bill". A call for federal price supports for key products like cotton, corn and wheat. The government went out and bought surplus crops at guraranteed prices and sold them on the world market.

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