In the 1970s, farm income in the United States had advanced rapidly as exports surged. The broad increase in farm income led to a significant rise in capital investments in the years that followed. But exports began to soften and fell sharply after the suspension of trade with the thenSoviet Union.
Farm incomes dropped, profits declined rapidly, and liquidity in the U.S. farm sector dried up. Other factors turned the sharp downturn into a crisis.