What was an effect of the currency deflation in the late 19th century?

In the late 19th century, currency deflation referred to a decrease in the money supply and a corresponding increase in the value of money. This situation had significant impacts on the agricultural community, particularly for farmers who frequently relied on loans to operate their farms.

Due to currency deflation, the value of money increased, which meant that the debt farmers owed became more burdensome in real terms. As prices for agricultural products fell, farmers found it increasingly difficult to generate enough revenue to meet their debts. This led to a cycle of financial hardship, where farmers struggled to pay off loans because the low crop prices did not provide sufficient income. Thus, the condition of being in high-cost debt during an era of currency deflation had severe consequences for farmers, who often faced foreclosure and loss of their land, resulting in challenges that rippled through the agricultural economy.

The other options do not accurately reflect the environment created by currency deflation. For instance, while local economies may have benefited from low prices in some contexts, the broader economic hardship for farmers contrasted with the benefits of deflation in local economies. Similarly, access to credit did not improve for farmers; instead, they faced tighter lending conditions due to their declining financial stability.