Final answer:
The exact rate of farm foreclosures in 1925 is not provided, but challenging economic conditions led to a wave of foreclosures throughout the 1920s, peaking in 1930. Falling commodity prices, high levels of debt, along with the Great Depression, exacerbated the crisis for farmers, culminating in widespread foreclosures.
Step-by-step explanation:
The rate of farm foreclosures in 1925 was not provided with exact percentages for the proposed options (8%, 14%, 16%, 18%). However, it is documented that the situation for farmers was difficult throughout the 1920s, worsened by overproduction and falling commodity prices, leading to an increase in foreclosures. Foreclosures reached their peak in the year 1930.
During World War I, high demand for food led to increased prices, but post-war, prices plummeted due to surplus production. As a consequence, the profits for farmers decreased significantly. Many had taken loans during the war expecting high returns, which resulted in widespread inability to repay these loans; by 1924, thousands of farms faced foreclosure. This economic strain exacerbated the migration from rural to urban areas.
With the onset of the Great Depression, conditions worsened. Prices for farm commodities dropped steeply, particularly affecting the Great Plains area. The agricultural sector's dire situation led to the foreclosure of approximately 750,000 family farms between 1930 and 1935, as farmers were unable to pay off mortgages and loans, leading to peak foreclosure rates in 1930.