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The U.S. government continued to instill inflationary policy following World War I. By June 1920, crop prices averaged 31% above 1919 prices and 121% above prewar prices of 1913. Also, farm land prices rose 40 percent from 1913 to 1920. Crops of 1920 cost more to produce than any other year. A price break which began in July 1920 squeezed farmers between decreasing agricultural prices and steady industrial prices. Examples of agriculture price declines include: Cotton went from 12.4 cents/lb. (average 1909-1914 prices) to 5.5 cents/lb. in 1933;

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