Agricultural Adjustment Act Facts for Kids

Quick facts for kids
Agricultural Adjustment Act (AAA)
Citations

Other short titles	Agricultural Adjustment Act of 1933 The Farm Relief Bill
Long title	An Act to relieve the existing national economic emergency by increasing agricultural purchasing power, to raise revenue for extraordinary expenses incurred by reason of such emergency, to provide emergency relief with respect to agricultural indebtedness, to provide for the orderly liquidation of joint-stock land banks, and for other purposes.
Enacted by	the 73rd United States Congress
Effective	May 12, 1933
Public law	73-10
Statutes at Large	48 Stat. 31
Codification
Titles amended	7 U.S.C.: Agriculture
U.S.C. sections created	7 U.S.C. ch. 26 § 601 et seq.
Legislative history
Introduced in the House as H.R. 3835 Passed the House on March 22, 1933 (315-98) Passed the Senate on April 28, 1933 (64-20) Reported by the joint conference committee on May 10, 1933; agreed to by the House on May 10, 1933 (passed) and by the Senate on May 10, 1933 (53-28) Signed into law by President Franklin D. Roosevelt on May 12, 1933
United States Supreme Court cases
United States v. Butler

The Agricultural Adjustment Act (AAA) was an important U.S. federal law passed in 1933. It was part of President Franklin D. Roosevelt's plan called the New Deal. The main goal of the AAA was to help American farmers during the Great Depression.

What Was the AAA?
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What Was the AAA?

The AAA aimed to fix a big problem: farmers were growing too much food. This created a "surplus" (extra supply) which made prices for farm products very low. Farmers could not earn enough money to live. The government wanted to raise these low prices. They hoped this would help farmers earn more and improve the economy.

Why Was the AAA Needed?

During the 1930s, the United States was in the Great Depression. Many people lost their jobs and money. Farmers were hit especially hard. Prices for crops like cotton, corn, and wheat dropped very low. Many farmers lost their farms because they could not pay their debts. The AAA was created to give farmers a fresh start.

How Did the AAA Work?

The AAA used a special plan to help farmers.

Paying Farmers: The government paid farmers to grow less food. This meant they would not plant crops on some of their land. They also paid farmers to reduce the number of animals they raised. Sometimes, the government even bought and killed livestock to reduce the supply.
Reducing Surpluses: By growing less, there would be less extra food. This would make the prices for farm products go up. Higher prices meant farmers could earn more money.
Funding the Program: The money for these payments came from a special tax. This tax was put on companies that processed farm products. For example, a company that turned wheat into flour would pay this tax.
New Agency: The Act also created a new group called the Agricultural Adjustment Administration. This agency was part of the U.S. Department of Agriculture. Its job was to manage the program and make sure farmers got their payments.

What Happened to the AAA?

The AAA helped many farmers by raising prices and giving them money. However, not everyone agreed with the law. Some people thought it was wrong to destroy food or pay farmers not to grow crops when many people were hungry. In 1936, the U.S. Supreme Court made a big decision. In the case United States v. Butler, the Court said that the AAA was unconstitutional. They ruled that the federal government did not have the power to control farming in this way.

After this, a new version of the law was passed in 1938. This new law tried to fix the problems the Supreme Court found. It continued to help farmers manage their crops and prices.