Growth of An Industry
The purchase of farm inputs, such as machinery, required an increasing
amount of capital and fewer individuals were willing or able to take on
the debt necessary to farm. Large cash outlays for farm equipment
increased specialization, and operators began producing larger
quantities of a limited number of products.
As a result, fewer farms were needed to meet the demand for agricultural products. Total farm and ranch acreage increased steadily during the first half of the 20th century, due in large part to development in the Great Plains and Far West where land policy encouraged continued conversion of large tracts of arid government lands to agricultural uses.
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