Definition of Agricultural Adjustment Act (AAA) of 1933

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TeachMeFinance.com - explain Agricultural Adjustment Act (AAA) of 1933



Agricultural Adjustment Act (AAA) of 1933

The term 'Agricultural Adjustment Act (AAA) of 1933 ' as it applies to the area of agriculture can be defined as ' P.L. 73-10 (May 12, 1933) was the New Deal initiative to assist the farm sector during the Great Depression. This was the first comprehensive effort to raise and stabilize farm prices and income. The law created and authorized the Agricultural Adjustment Administration to (1) enter into voluntary agreements to pay farmers to reduce production of designated 'basic' commodities (cotton, wheat, corn, rice, tobacco, hogs, and milk), (2) to make advance payments to farmers who stored crops on the farm, (3) to create marketing agreements between farmers and middlemen, and (4) to levy processing taxes to pay for production adjustment and market development. The Commodity Credit Corporation (CCC) was incorporated under the laws of the state of Delaware on October 17, 1933, to carry out financial activities, including making nonrecourse loans on the basic crops. Support for other commodities was authorized upon recommendation by the Secretary with the Presidentís approval. Commodity loan programs carried out by the CCC for 1933-37 included cotton, corn, rosin, turpentine, tobacco, peanuts, dates, figs, and prunes. The provisions for production control and processing taxes in the Act were later declared unconstitutional in the Hoosac Mills decision of 1936. Congress responded by adopting the Soil Conservation and Domestic Allotment Act of 1936, the Agricultural Marketing Act of 1937, and the Agricultural Adjustment Act of 1938, all of which remain as permanent law'.

Previous 5 Terms:
Agribusiness
Agricultural Act of 1949
Agricultural Act of 1954
Agricultural Act of 1956
Agricultural Act of 1970
Next 5 Terms:
Agricultural Adjustment Act Amendment of 1935
Agricultural Adjustment Act of 1938
Agricultural Attache, Counselor, or Trade Officer
Agricultural Conservation Program (ACP)
Agricultural Credit Act of 1987




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