Agricultural Adjustment Administration

Definition

The Agricultural Adjustment Administration (AAA) was a New Deal agency created in 1933 to boost agricultural prices by reducing surpluses through various means, including paying farmers to cut production. By aiming to stabilize the agricultural economy, it sought to address the severe economic distress faced by farmers during the Great Depression, which significantly impacted Florida's agricultural sector.

5 Must Know Facts For Your Next Test

1. The AAA was established as part of the New Deal to combat falling farm prices and the financial crisis that affected farmers during the Great Depression.
2. In Florida, the AAA specifically targeted key crops like cotton and citrus, which were crucial to the state's economy.
3. Farmers were encouraged to reduce their crop acreage in exchange for government payments, helping to stabilize market prices.
4. The AAA faced criticism from both sides: some believed it didn't do enough for smaller farmers, while others argued it favored larger agricultural operations.
5. The Supreme Court declared a key provision of the AAA unconstitutional in 1936, leading to a reorganization of agricultural policies under subsequent programs.

Review Questions

• How did the Agricultural Adjustment Administration aim to support farmers during the Great Depression?
  • The Agricultural Adjustment Administration aimed to support farmers by stabilizing agricultural prices through a system of subsidies and production cuts. It encouraged farmers to reduce their crop production in exchange for financial payments, which helped decrease surpluses and increase prices. This approach not only sought to alleviate the immediate economic distress faced by farmers but also aimed at restoring balance within the agricultural market during a time of widespread economic instability.
• Evaluate the impact of the Agricultural Adjustment Administration on Florida's agricultural economy during the New Deal era.
  • The Agricultural Adjustment Administration had a significant impact on Florida's agricultural economy by specifically targeting key crops such as citrus and cotton. By incentivizing farmers to reduce their production levels, the AAA helped stabilize prices that had plummeted during the Great Depression. This stabilization was crucial for many Florida farmers who depended on these crops for their livelihoods. However, the benefits were unevenly distributed, often favoring larger farming operations over smaller ones.
• Assess how the controversies surrounding the Agricultural Adjustment Administration reflect broader debates about government intervention in agriculture.
  • Controversies surrounding the Agricultural Adjustment Administration highlight broader debates about government intervention in agriculture, particularly regarding fairness and effectiveness. Critics argued that while the AAA aimed to help stabilize prices and support farmers, it often favored larger agricultural enterprises at the expense of smaller farms. The differing perspectives on subsidies and production controls sparked discussions about the role of government in regulating agriculture, balancing economic stability with equitable support for all farmers. This ongoing debate continues to influence agricultural policy discussions today.

Related terms

New Deal: A series of programs and reforms launched by President Franklin D. Roosevelt in response to the Great Depression, aimed at providing relief, recovery, and reform for the American economy.

Subsidy: A financial assistance provided by the government to support an economic sector, in this case, payments made to farmers to incentivize reduced crop production.

Soil Conservation: Practices aimed at preventing soil erosion and maintaining soil health, which were promoted by the AAA as part of its goals to improve agricultural productivity and sustainability.