AAA.jpgNew Deal Information

AAA - Agricultural Adjustment Act

Overview- The AAA was set up to decrease the amount of crops and to lower price of the crops. It also gave money to farmers to kill there animals and not plant the land so everything could drop in price. AAA controlled the supply of seven "basic crops" – corn, wheat, cotton, rice, peanuts, tobacco and milk – by offering payments to farmers in return for taking some of their land out of farming, not planting a crop. This idea of supporting farmers by limiting supply has also produced controversy. Some critics point out that only seven of the hundreds or thousands of different crops grown by farmers are eligible for payments. No livestock producers are included. Farmers also continue to produce more and more despite the limitations the government imposes. New technologies make it possible to grow much more on the same amount of land.

Purpose- The purpose of the Agricultural Adjustment Act was to pay farmers to stop planting so many crops so there weren’t so much of them and the price would drop.

Who it helped?- AAA helped the American people because it decreased the price of crops so they could afford them but it hurt the farmers because crop prices went down so they couldn’t sell it for more.

Contributed by: "JH"