Agricultural Adjustment Act

The United States Agricultural Adjustment Act (AAA) (P.L. 73-10 of May 12, 1933) restricted production during the New Deal by paying farmers to reduce crop area. Its purpose was to reduce crop surplus so as to effectively raise the value of crops, thereby giving farmers relative stability again. The farmers were paid subsidies by the federal government for leaving some of their land idle. By the time the AAA began its operations, the agricultural season was already under way. In effect, the agency oversaw a large-scale destruction of existing crops and livestock in an attempt to reduce surpluses. For example, six million pigs and 220,000 sows were slaughtered in the AAA's effort to raise prices. Even some cotton farmers plowed under a quarter of their crop in accordance with the AAA's plans (Brinkley, 1999 "p. 879"). Due to the nature of the Great Depression, many United States citizens saw the AAA as cruel: while they were often hungering, the federal government was destroying crops and livestock. The AAA was declared unconstitutional by the Supreme Court in the case United States v. Butler et al. (297 U.S. 1, January 6, 1936) because it taxed one group to pay another. Congress then achieved part of the original Act's goals with the Soil Conservation and Domestic Allotment Act of 1936 until the enactment of a second AAA (P.L. 75-430) on February 16, 1938. This second AAA was funded from general taxation, and therefore acceptable to the Supreme Court.

References

 

<< PreviousWord BrowserNext >>
payne aldrich tariff
federal farm loan act
railway labor act
clayton antitrust act
federal trade commission act
federal reserve act
mann act
mann elkins act
underwood tariff
sixteenth amendment
agriculture marketing act
indian reorganization act
shampoo
list of united states immigration acts
fordney mccumber tariff
shepard tone
emergency quota act
esch cummins act
volstead act
harmonic function
norris laguardia act
public works administration
tennessee valley authority
home owners loan corporation
farm credit administration
civil works administration
works progress administration
glass steagal act
gramm rudman hollings balanced budget act
gramm latta budget
kemp roth tax cut
tax reform act of 1986
voting rights act
great society
medicare
medicaid
national environmental protection act
full employment act
trade expansion act
thessaly
federal housing administration
johnson act
reciprocal trade agreements act
tydings mcduffie act