Australian farms did change in the late 1930s and during World War II, but the main goal was usually survival and stability rather than a single strategy to avoid foreclosure. A shift from only cropping to mixed farming often helped, because livestock could spread risk, improve soil use, and provide a more reliable cash flow when grain prices, drought, debt, or labor shortages made pure cropping fragile.

What changed on farms

  • Many farms moved toward mixed farming : crops plus sheep or cattle, instead of relying only on wheat or other grains.
  • Farmers also adjusted production toward what the wartime economy needed, since Australia was supplying food for the armed forces and labor was tight after conscription in 1942.
  • Some farms had already started making this shift before the war, but the war accelerated it because it rewarded flexibility and lower risk.

Why mixed farming helped

  • Income diversification: if a crop failed or prices fell, livestock sales could still bring in money.
  • Better use of land: crops and animals could complement each other through grazing, manure, and rotation.
  • Less exposure to one market: farms dependent on one commodity were more vulnerable to debt stress and foreclosure.

Did it prevent foreclosure?

Yes, often it could help, but it was not a guarantee. Foreclosure risk depended on debt levels, rainfall, commodity prices, transport, and government support, so mixed farming was a practical defense rather than a cure-all. In plain terms, a farm that could earn from both wool/meat and grain was usually in a stronger position than one that depended on a single crop.

WW2 effect

During World War II, the pressure to produce food and the shortage of farm workers pushed farmers to reorganize, not just expand. That meant more emphasis on efficiency, livestock, and systems that could run with fewer hands. So yes, going from just crop farming to crop and livestock farming generally helped many Australian farms become more resilient.

TL;DR

Mixed farming usually helped Australian farms weather the years before and during World War II because it reduced risk and improved cash flow, but it did not automatically stop foreclosure.