The Agricultural Adjustment Act :: essays research papers

The inelegant revision performDuring World War I, Englands agricultural economy was poorly damaged. This inconvenience for the English was a blessing to American bring abouters. Since the invention of the combine, and several(a) other mechanical harvesting machines, American developers could increase their crop yield. In turn they could export the extra crops to England for more money. Once England got back on its feet, American farmers could not find any exports for their crops. As they go along to produce more than the American people could consume, the prices of agricultural goods dramatically dropped. By the 1930s many farmers were in serious need of help, with heavy farm loans and mortgages hanging over their heads. Nothing had been done to help the farmers during The Hoover Administration. So in 1933 as part of Roosevelts New Deal, the Secretary of Agriculture, Henry Wallace devised a plan to limit take and increase prices. Which came to be known as the Agricultural Adjustment Act of 1933, also known as the abdominal aortic aneurysm. The AAA was established on whitethorn 12, 1933 it was the New Deal thought process to assist farmers during the Great Depression. It was the first far-flung effort to raise and stabilize farm prices and income. The law created and authorized the Agricultural Adjustment Administration to Enter into voluntary agreements to pay farmers to reduce merchandise of basic commodities ( cotton wool, wheat, corn, rice, tobacco, hogs, milk, etc..), to make advanced payments to farmers who stored crops on the farm, create marketing agreements betwixt farmers and middlemen, and to levy processing taxes to pay for production adjustments and market development. Basically the AAA paid farmers to destroy their crops and livestock in return for cash. In 1933 alone cotton farmers were paid $100 million to plow over their cotton crop. Six million piglets were slaughtered by the government after they bought them from farmers. The me at was tin and given to people without jobs. In order for this new bill to nominate there needed to be money to pay the farmers, this money came from the companies that bought farm products in the form of taxes. While it seemed like a good idea to pay farmers to cut back on crops to lowering the surplus and further the economy, The Supreme Court found the Act unconstitutional in 1936.