What is the Agricultural Adjustment Act?
Q: What is the Agricultural Adjustment Act?
A: The Agricultural Adjustment Act (AAA) is a federal law of the New Deal era designed to raise agricultural prices by reducing surpluses.
Q: How did the government aim to reduce surpluses under the AAA?
A: The government bought livestock to kill, and they paid farmers subsidies not to plant on part of their land.
Q: How was the money for AAA subsidies generated?
A: The money for AAA subsidies was generated through a tax on companies which processed farm products.
Q: What does the AAA aim to achieve?
A: The aim of the AAA is to stabilize agricultural prices by reducing surpluses.
Q: What agency was created by the AAA?
A: The AAA created a new agency, the Agricultural Adjustment Administration, which oversees the distribution of subsidies.
Q: Which department does the AAA agency fall under?
A: The AAA agency falls under the U.S. Department of Agriculture.
Q: What was the impact of the AAA?
A: The impact of the AAA was significant in raising farm prices and stabilizing agricultural markets, but it faced criticism for creating unfair advantages for large farmers and leading to land displacement for small farmers.
