Agricultural Adjustment Act

Improved Essays
In 1933 a federal law from the New Deal era was put into place. This was the Agricultural Adjustment Act of 1933. The act reduced production by paying farmers subsidies to not plant on part of their land and to kill off excess livestock. This was to reduce any surplus in crops and to increase the market value of crops.
One of the task that the Roosevelt administration was given was to decrease the surpluses in milk, tobacco, wheat, field corn, rice, cotton, and hogs. This list expanded in the following two years, 1934 & 1935, to include potatoes, sugar cane, peanuts, grain sorghum, flax, sugar beets, barley, rye, and cattle. These products were focused on because: 1) Changes in prices of these commodities played a crucial role in deicind the

Related Documents

  • Improved Essays

    Producers of raw materials, such as Argentine beef, Chilean nitrates, and Indonesian sugar, experienced the worst effects of the Depression. In FDR's inaugural address on March 4, he notes that "farmers [found] no markets for their produce; the savings of many years in thousands of families are gone. " Nevertheless, he offers comfort and direction to the American people. Unlike former President Hoover, who thought the crises was “'a passing incident’...…

    • 538 Words
    • 3 Pages
    Improved Essays
  • Great Essays

    Nt1310 Unit 5 Exercise 1

    • 974 Words
    • 4 Pages

    Introduction: Federal crop insurance was first introduced in the early 1930s to help producers recover from the Great Depression and the Dust Bowl (“History of the Crop Insurance Program”). The now program covers millions of farm acres and has become the largest single farm commodity program in the farm bill. It is a major part of the farm bill and can influence the commodity markets of the United States. Policy Discussion: The federal crop insurance program was created to lower the risk of being a producer.…

    • 974 Words
    • 4 Pages
    Great Essays
  • Improved Essays

    Name Camelia Barrows Case Wickard v. Filburn Case Citation: Wickard v. Filburn, 317 U.S. 111, 63 S. Ct. 82, 87 L. Ed. 122 (1942) Facts: In 1938 the Agricultural Adjustment Act, or AAA, was passed to limit the amount of wheat grown and sold, as to prevent surpluses or shortages, and set fines for the overproduction of wheat. Filburn sold a portion of the wheat he grew and kept the rest for himself. But according to the AAA , the amount Filburn sold plus what Filburn kept exceeded the limit of how much wheat was allowed to be grown.…

    • 554 Words
    • 3 Pages
    Improved Essays
  • Decent Essays

    Wickard v. Filburn United States Supreme Court 317 U.S. 111 (1942) Facts: In the year 1933, Franklin D. Roosevelt and congress passed the Agricultural Adjustment Act (AAA). This act set a limit for the total amount of wheat that can be put into the interstate commerce. The act further implemented penalties for violation of the law. Farmers had a set amount of wheat for which they could produce each year.…

    • 510 Words
    • 3 Pages
    Decent Essays
  • Improved Essays

    Dramatic changes in the American farm economy occurred in the years following the Civil War. These changes came about because of aggressive and progressive farm coalitions. The agrarian interest was instrumental in initiating the dramatic changes in the manner in which State and Federal governments regulated commerce and were the forerunner of many future government agencies that were formed to protect the farmer, the consumer, the laborer and other facets of our economy. Industry prospered as a result of technology, government policies, economic condition and in a general sense the American standard of living improved greatly.…

    • 909 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    These things saved labor and allowed there to be more production so products were cheaper. But since so much was being made and being sold for so little, farmers weren't making enough money so they were losing more than gaining. To add to the dilemma farmers were being tariffed…

    • 602 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Due to no impeding threat of invasion, the United States’ agricultural sector was able to farmer openly and safely. However, the United States would not have been able to supply itself and its allies without the policies and practices implemented after the Great Depression. Coming out of the Great Depression, United States farmers saw an undesired surplus that scared American farmers. This surplus was seen as an end to the…

    • 1070 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    New Deal Dbq

    • 1023 Words
    • 5 Pages

    The New deal was a response to America’s spiraling economic despair. It created millions of jobs and work programs that lifted the American psych. FDR enacted the New Deal immediately after he was elected, with the emergency banking act “which reorganized the banks and closed the ones that were insolvent” (An evaluation of the New Deal). In addition, as a result of the New Deal, agriculture improved with about a 50% increase of income for farmers (John Hardman). The New deal improved the lives of many…

    • 1023 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Great Depression Dbq

    • 1755 Words
    • 8 Pages

    The first Agricultural Adjustment Act, which was passed on May 12, 1933, created the Agricultural Adjustment Administration, this Act was introduced to captivate the fall in agricultural prices that was causing hardship in the farming industry. This agency placed restrictions on the production of corn, cotton, dairy products, hogs, rice, tobacco, and wheat, and gave farmers money for the crops and livestock that they did not produce from funds raised by a tax on food processing. Since the law went into effect after the 1933 crops had been sown and animals born, the agency had to order that crops be destroyed and livestock slaughtered in order to meet the 1933 production restrictions. During the program's first three years because of the restrictions on supply, food prices rose and farm incomes increased significantly. The Agricultural Adjustment Act has not been repealed by Congress and has been many times amended, the latest being in the 1990s.…

    • 1755 Words
    • 8 Pages
    Improved Essays
  • Great Essays

    The picture of Fred Bell known as ‘Champagne Fred’, a one-time millionaire, selling apples at his stand on a busy street corner in San Francisco in March 1931 during the Great Depression, became a symbol of the stock market crash in 1929. (McLeod, 1969) Although the collapse of the stock market on October 24, 1929, known as the ‘Black Thursday’, signed in everyone’s mind the beginning of the Great Depression, actually it only precipitated it. A combination of conditions led the United States to the worst economic crisis in its history. During this traumatic period of despair, the Presidents Herbert Hoover and Franklin D. Roosevelt would answer this crisis with very antagonist approaches to bring the United States out of this economic catastrophe.…

    • 1247 Words
    • 5 Pages
    Great Essays
  • Improved Essays

    Farmers had to deal with overproduction. More and more crops were put in the market. Unfortunately, this deflated the prices farmers could demand for their goods. Farmers were growing several crops and were not making any money. If someone compared cotton production and the values during the Gilded Age, they would see the issues the farmers have.…

    • 492 Words
    • 2 Pages
    Improved Essays
  • Decent Essays

    The Populist Party

    • 74 Words
    • 1 Pages

    Between the end of the Civil War and the 1890s, farmers accumulated massive debts they could not repay and the prices for the main crops declined; this was caused by government monetary policies such as the gold standard, leading to the formation of the Populist Party where farmers sought to lower shipping and storage costs; this resulted in the Populist Party introducing a new method of campaigning for presidents, appealing directly to the…

    • 74 Words
    • 1 Pages
    Decent Essays
  • Improved Essays

    Agriculture is one of the main cornerstones of American history, from the Native Americans, to the tobacco fields of Jamestown, to our modern day lives. The United States agriculture system has gone through many changes, but few have been as important as the introduction of the Agricultural Adjustment Act of the New Deal and the later reversal of the act that came in the 1970s under the hand of Earl Butz, which remains in place today. The Agricultural Adjustment Act (AAA) was put in place in 1933 to “rescue farmers from the disastrous effects of growing too much food” (Ganzel, Pollan 49). Butz’s plan, on the other hand, reversed the AAA and worked to drive down prices and increase the output of farmers (Pollan 52). The policies had both advantages and disadvantages, but it seemed as if everyone one benefited, more or less, from both.…

    • 793 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    American Imperialism was on the rise in the early nineteenth century. Imperialism stemmed from the idea of Social Darwinism which can be explained as, “survival of the fittest.” The idea was to build up your empire and dominate control over other countries. By the 1890’s, America gained a new sense of power that stemmed from a growth in population, wealth, and industrial production. During this Imperialism Era another era began to unfold, known as the Progressive Era.…

    • 663 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Before the War Industries Board, U.S. Steel was making 76 million goods, after U.S. Steel was making 478 million goods. While Herbert Hoover was in charge of the Food Administration he convinced farmers to grow more food, while recommending americans to eat less in order to feed the allies. The United States military was only in combat during the last year of World War I. By the end of the First World War, the United States had sold billions of dollars to the Allies, and millions of dollars to the Central Powers. In 1929, the Great Depression began Germany was forced to pay reparations, so Charles G. Dawes came up with the Dawes Plan;…

    • 1204 Words
    • 5 Pages
    Improved Essays