Agriculture Adjustment Act (AAA)

The New Deal.

What was the purpose?

The Agriculture Adjustment Act (AAA) was created to restore the purchasing power of American farmers to pre world war one levels.

What did it control?

The AAA controlled the supply of seven "basic crops" such as corn, wheat,, cotton, rice, peanuts, tobacco, and milk. They in return offered payments to farmers to not pant these crops.

How did it help farmers?

This act became involved in assisting farmers ruined by the advent of the dust bowl in 1934.

When was this act effective?

The Agriculture Adjustment Act was made effective on May 12,1933.

What caused the act?

World War I severely disrupted agriculture in Europe. That was an advantage to farmers in the United States, who increased production dramatically and were therefore able to export surplus food to European countries. But by the 1920s, European agriculture had recovered and American farmers found it more difficult to find export markets for their products. Farmers continued to produce more food than could be consumed, and prices began to fall.