The Agricultural Adjustment Act
During World War I, England’s agricultural economy was badly damaged. This inconvenience for the English was a blessing to American farmers. Since the invention of the combine, and various other mechanical harvesting machines, American farmers could increase their crop yield. In turn they could export the extra crops to England for more money. Once England got back on it’s feet, American farmers could not find any exports for their crops. As they continued to produce more than the American people could consume, the prices of agricultural goods dramatically dropped. By the 1930’s many farmers were in serious need of help, with heavy farm loans and mortgages hanging over their head’s. Nothing had been done to help the farmer’s during The Hoover Administration. So in 1933 as part of Roosevelt’s New Deal, the Secretary of Agriculture, Henry Wallace devised a plan to limit production and increase prices. Which came to be known as the Agricultural Adjustment Act of 1933, also known as the AAA. The AAA was established on May 12, 1933 it was the New Deal idea to assist farmers during the Great Depression. It was the first widespread effort to raise and stabilize farm prices and income. The law created and authorized the Agricultural Adjustment Administration to: Enter into voluntary agreements to pay farmers to reduce production of basic commodities ( cotton, wheat, corn, rice, tobacco, hogs, milk, etc..), to make advanced payments to farmers who stored crops on the farm, create marketing agreements between farmers and middlemen, and to levy processing taxes to pay for production adjustments and market development. Basically the AAA paid farmers to destroy their crops and livestock in return for cash. In 1933 alone cotton farmers were paid $100 million to plow over their cotton crop. Six million piglets were slaughtered by the government after they bought them from farmers. The meat was canned and given to people without jobs. In order for this new bill to work there needed to be money to pay the farmers, this money came from the companies that bought farm products in the form of taxes. While it seemed like a good idea to pay farmers to cut back on crops to lowering the surplus and boost the economy, The Supreme Court found the Act unconstitutional in 1936.
After the civil war, America found itself with a high production rate, resulting in overproduction and falling of prices, as well as an increase on economic stress and the beginning of panic and prosperity cycles. The wars demand for products had called for a more efficient production system; therefore new machinery had come into place. New tools, such as the reaper, shown in document D, the wheat harvest of 1880, were introduced and facilitated production for farmers, making overproduction more probable. Variation on prices than begun to occur as shown in document A, Agriculture prices in 1865-1900, where a greater amount of goods became available for a more convenient price. This had farmers in distress, for they were losing more money than they were making.
The period between 1870 and 1900 was a time to change politics. The country was for once free from war and was united as one nation. However, as these decades passed by, the American farmer found it harder to live comfortably. Crops such as cotton and wheat, once the cash crop of agriculture, were selling at prices so low that it was nearly impossible for farmers to make a profit. Improvements in transportation allowed larger competitors to sell more easily and more cheaply, making it harder for American yeoman farmers to sell their crops. Finally, years of drought in the Midwest and the fall of business in the 1890s devastated the farming community. Most notably, the Populist Party arose to fight what farmers saw as the issues affecting the agricultural community. During the last thirty years of the nineteenth century, many farmers in the United States saw railroads and banking enterprises threaten their way of life; their work to fight these elements eventually led to a change in national politics.
Agriculture has been practiced in what is now Alabama for centuries. Alabama agriculture has changed considerably since the mid-1860s, when cotton was king and Alabama was known as "The Cotton State." One hundred years ago almost four million acres were planted to cotton, and today only 1.3 million acres are devoted to all agricultural crops” (Mitchell, 2007). Agriculture in Alabama is mainly cotton and peanuts in the past they grew cattle corn and cotton. The Native Americans started Alabama off with slash-and-burn agriculture, in which they cut and burned forests to make room for their fields of corn, beans, and squash.
... having oversupply which would then result in prices being able to be raised on the crops, so that way farmers did not over harvest and got more for their money. Contrary to the AAA act pleasing many farmers and collectively bringing in $1,500,000,000 from 1933 to 1936 the government felt it was unconstitutional and decided dispel the law and revise it two years later, The new law set in place was centered around the original AAA, but it was felt to be more constitutional by member of the government. AAA was important because it not only was gov’t effort to help reduce over harvesting, and then not being able to sell crops this causing farmers to go broke, but it helped farmers gain more money because by producing less crops it made their retail value higher thus allowing them to earn more money and creating a more stable foundation for farmers within society.
this notion of stable supply and demand affected prices of farm commodities. “Low prices on
Between 1865 and 1900 technology, economic conditions, and government policy influenced American Agriculture greater than it ever had before. Technologically, Railroads, factories, and farm equipment changed American agriculture by allowing the production of farmed goods to be increased substantially, while economic conditions caused the prices of these goods to go down and then fluctuate. Farmers hurting from the economic disarray began influencing the laws being passed to help them in their economic troubles. Because of the influence of technology, government policy, and economic conditions between the 1865 and 1900 American agriculture was affected.
The effect from both the Dust Bowl drought and the Great Depression made it hard on farmers in the early 1900’s; it was hard for farmers to produce crops (“The Ultimate AP US History”). Farmers with small businesses were forced to end
Farmer’s discontent during the period 1870 – 1900 had an impact on their attitudes and actions towards politics. During this period manufacturing had a growth spurt and agricultural started to decline. This made it harder for the farmers to make a decent living. For example in document G it shows how much manufacturing increased between the 50 years. America could no longer dream to be a nation of small freehold farms. Manufacturers and people living in big cities depended on farmers to supply everything. Many people didn’t realize how much of an affect farmers had on their lives. If somebody was to take farms away, everything would have completely crashed.
As you walk to the other end of the stage and look out into the sea of blue and gold corduroy, you realize this it! This is the moment you’ve worked toward for the last four years. You’ve stayed long hours after school working on you record book, spent grueling hours memorizing speeches, experienced the joy of winning first place at a state CDE contest, and best of all you met so many amazing people and doors were opened to opportunities you never imagined. Finally, after all of your hard work, you’re receiving your State FFA Degree! All of this from making one simple decision your freshman year of high school, signing up for the FFA. What you didn’t realize at the time was that this wonderful organization would help you build leadership skills and teach life skills that you are going to need in the coming years.
In the early stages of the war the prices of agricultural products increased and the farmers in the U.S enjoyed a 25% greater spending budget. Which was a big positive for those whom were poor farmers giving them a chance to lift themselves out of their poverty stricken state. Everywhere across the United States demands for produce increased like the increase by 30% of hog production and an increase of 18% of hogs ready to be slaughtered. Even with all of these increase in production most experts believed that the war would soon end and farmers did not want to produce to much and have no one to sell the produce to. The war turned a farmer into one of the the most important people in the country. Farming came to be as essential to the country as manufacturing planes, tanks and ammunition . A down side to the production of agricultural goods is that there would later be a lack of farm hands and people to run the farms because all of the farmers sons were being called to support...
With that act the Emergency Farm Mortgage Act came along also. These acts were designed to raise farm incomes, and give funds to farmers. They did this so farmers would not lose their land to foreclosure. The goal of this act was to lower production and raise prices. The Agricultural Adjustment Administration or AAA aided the farmers. In the spring, the Agricultural Adjustment Administration and the farmers got together. When the got together they set up quotas over how many acres of crop and livestock the United States needed. The Agricultural Adjustment Administration would pay farmers not to farm. The AAA secured themselves with the law of supply and demand. This became an enormous problem to the AAA. In 1933, the AAA plowed under millions of corn acres and slaughtered millions of pigs. Even though they AAA saved the farmers from economic disaster they still managed to do some harm along the way. Forty million acres of land had been taken out of production. Regardless of taking all of those acres out for production farm income increased with more than fifty percent within two years. (The New Deal,
During the 1930s, the country was in a state of economic depression. Some Americans lost their jobs, while others received a pay cut. There was a low amount of cash circulating the system, and most items were bought on credit. Because families were low on money, they could only buy the bare necessities. They had to spend their money wisely. Since only a minimum amount of food was bought, the supply of crops exceeded the demand. This caused the prices for farmers selling crops to decline. Therefore, the cost of production was more than the profit of selling the crops, making it extremely difficult for farmers to survive.
Agricultural subsidies is a very complex and controversial economic topic today. It will continue to be a hot topic as government continues it. It is largely debated in the United States as well as in other countries. The reason it is so largely debated is because it literally have an effect on the entire world market. Not to mention that the farm has been booming the last 5 to 10 years. This topic also tends to draw strong opinions in our area in particular due to the large agricultural community in our region. However, even within different states there are many supporters as well as opponents to these government subsidies.
Most of the reasons concerning agrarian discontent in the late nineteenth century stem from supposed threats posed by monopolies and trusts, railroads, money shortages and the demonetization of silver, though in many cases their complaints were not valid. The American farmer at this time already had his fair share of problems, perhaps even perceived as unfair in regards to the success industrialized businessmen were experiencing. Nevertheless, crops such as cotton and wheat, which were once the staples of an agricultural society, were selling at such low prices that it was nearly impossible for farmers to make a profit off them, especially since some had invested a great deal of money in modern equipment that would allow them to produce twice as many goods. Furthermore, improvements in transportation allowed foreign competition to emerge, making it harder for American Farmers to not only dispose of surplus crop, but to transport crops period. Finally, years of drought in the Midwest and the degeneration of business in the 1890's devastated many of the nation's farmers, and as a result of this agricultural depression' many farm groups, most notably the Populist Party, arose to fight what farmers saw as the reasons for the decline of agriculture.
Agriculture is not all work and no play. Many advances can be made in the understanding of agriculture by making available a variety of methods to provide children with a hands-on experience and also educating all individuals about the importance of the practice. The ignorance of urban communities can be overcome with the help of organizations and people within the community. School visits, hands-on experiences, volunteers and organizations are just a few examples of the steps that can be taken to educate Americans about agriculture and close the gap between rural and urban populations.