Slump in agricultural prices in the 1920s

In the 1920s, increased production of food grains, particularly wheat, expanded world trade. In the case of Germany, the gold standard supported the storage of wheat which was then used as a collateral for foreign credit. Between 1924 and 1929, the oversupply of wheat around the world (mainly imported from the US, Argentina, Canada and Australia) caused the decrease in international price.

The unstoppable decline of wheat prices in 1929 contributed to the decreasing value of trade, which later resulted in panic sales of stocks, mainly in the US. Agricultural recession or farming crisis in the US in the 1920s was characterised by low crop prices and low farm income.