Incoming money payments of Iowa farmers in 1932 were only 38 percent of the 1929 level. By 1939, they had increased to 88 percent of 1929.
With the sharp drop in income in 1931 and 1932 farmers also reduced expenditures but since 1933 have increased them. Expenditures were reduced far more for some items than for others. Expenditures for fertilizer, machinery and buildings in 1932 were about 20 percent of those for 1929, while expenditures for taxes, gasoline, telephones and electricity had dropped only to about 75 percent of those for 1929. Tax and interest payments remained relatively high until 1931, when they dropped sharply as the full impact of the depression hit Iowa agriculture.
With higher incomes after 1933, farmers increased some expenditures but not others. In 1939 more was spent for feeder livestock, seeds, gasoline, baby chicks, electricity and family living than in 1929 even though income was 12 percent· less. This was possible through smaller increases in other expenditures, particularly taxes, buildings, wages to hired labor and interest on indebtedness, all of which were less than two-thirds of 1929 levels.
"Incoming and outgoing payments of Iowa farm families,"
Research Bulletin (Iowa Agriculture and Home Economics Experiment Station): Vol. 25
, Article 1.
Available at: https://lib.dr.iastate.edu/researchbulletin/vol25/iss293/1