Agricultural Adjustment Administration

Definition

The Agricultural Adjustment Administration (AAA) was a New Deal agency created in 1933 to boost agricultural prices by reducing surpluses. By paying farmers to limit production, the AAA aimed to raise crop prices and stabilize the farming economy during the Great Depression. This initiative was part of a broader strategy to alleviate economic distress and promote recovery in the agricultural sector.

5 Must Know Facts For Your Next Test

1. The AAA was part of Roosevelt's New Deal and focused on agricultural recovery by encouraging farmers to reduce crop production.
2. Farmers received subsidies from the AAA for not planting certain crops, which aimed to increase demand and prices for those crops.
3. The AAA initially faced criticism for favoring large landowners over tenant farmers and sharecroppers, who often saw little benefit from its programs.
4. The Supreme Court declared a key provision of the AAA unconstitutional in 1936, leading to changes in agricultural policy.
5. The agency was eventually replaced by the Soil Conservation and Domestic Allotment Act in 1936, which shifted focus towards conservation practices alongside price support.

Review Questions

• How did the Agricultural Adjustment Administration aim to improve the economic conditions for farmers during the Great Depression?
  • The Agricultural Adjustment Administration aimed to improve economic conditions for farmers by implementing policies that incentivized reduced crop production. By paying farmers to limit their outputs, the AAA sought to decrease surpluses, which would ideally lead to higher market prices for agricultural products. This approach was intended to stabilize the farming economy and alleviate some of the financial hardships farmers faced during the Great Depression.
• Evaluate the effectiveness of the Agricultural Adjustment Administration in addressing the issues faced by farmers during the Great Depression.
  • The effectiveness of the Agricultural Adjustment Administration can be seen as mixed. While it successfully raised crop prices and provided much-needed financial assistance to some farmers, it often favored larger landowners and did not adequately support tenant farmers or sharecroppers. This disparity led to criticism of the program, highlighting its limitations in creating equitable economic relief across all farming communities. Additionally, legal challenges ultimately forced changes in its structure and approach.
• Assess how the Agricultural Adjustment Administration influenced agricultural policy in the United States beyond the Great Depression era.
  • The Agricultural Adjustment Administration had a lasting impact on agricultural policy in the United States by establishing precedents for government intervention in farming markets. Its strategies of production control and price stabilization influenced later policies and programs aimed at supporting farmers during economic downturns. The challenges faced by the AAA also prompted a shift towards more comprehensive approaches that included conservation practices and social equity considerations, ultimately shaping modern agricultural policy frameworks.

Related terms

New Deal:

A series of programs and reforms introduced by President Franklin D. Roosevelt aimed at recovering the U.S. economy during the Great Depression.

Dust Bowl:

A severe drought and poor agricultural practices in the 1930s that led to widespread crop failures and displacement of farmers in the Great Plains.

Sharecropping:

A system where landowners allowed tenants to farm their land in exchange for a share of the crops produced, often leading to cycles of debt and poverty.