Definition: This law was enacted in 1933 and sought to raise crop prices by encouraging farmers to lower production; farmers were paid by the government to leave a certain amount of land unplanted.

Agricultural Adjustment Act

Explanation:

Agricultural Adjustment Act (AAA) of 1933 was first enacted by President Franklin Roosevelt and it was designed to correct the imbalance. Farmers who agreed to limit production would receive “parity” payments to balance prices between farm and nonfarm products, based on prewar income levels.

The Agricultural Adjustment Administration was created to implement the law’s goals which were limiting crop production, reducing stock numbers, and refinancing mortgages with terms more favorable to struggling farmers, and it was initially headed by George Peek – a man, ironically, not overly enthusiastic about the New Deal. Farmers were paid to destroy crops and livestock, which led to depressing scenes of fields plowed under, corn burned as fuel and piglets slaughtered.  Nevertheless, many of the farm products removed from economic circulation were utilized in productive ways.  For example: “The pork products were distributed to unemployed families…Other food products purchased for surplus removal and distribution in relief channels included butter, cheese, and flour”

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