The Agricultural Adjustment Act is a U.S. federal act that placed restrictions in farming by giving planters subsidies for them not to farm some portions of their lands. The subsidies were also given for them to get rid of any excesses in livestock being bred. The goal was actually to bring down surplus of produce or livestock in order to increase the value of these livestock and crops. In order to raise money for such subsidies, the government imposed a tax on farm produce processing firms. The law also paved the way for the establishment of the Agricultural Adjustment Administration which would take charge of subsidy allotment. The Agricultural Adjustment Act was actually considered a pioneering farm law in the United States.
To put the law into perspective on why this law came into being, the government wanted to do something to uplift the difficult condition of the farmers especially … Read More