Agricultural Adjustment Determination

The increase in corn production and acreage that comes from FAIRA is yet another slap in the face to the American farmer. By allowing for increased corn production on top of the already surplus of corn that domestic farms already produce, the government is actively lowering the price of corn on the market, making it less profitable for farms to grow and forcing a lot of farms to close down. In the Great Depression era, the United States government under President Roosevelt took to subsidizing and buying up excess stores of corn to maintain crop prices and prevent the collapse of the farming industry in the United States (Pollan 49). This protects farmers and allows them to make a living while also providing reasonably priced crops to feed the country with. The Nixon administration began the trend of deregulation in the 1970s, preferring a free

Farmers did well after the Civil War and into the 1880s with plentiful rainfall and easy credit from banks. In the 1890s, however, American farmers suffered from drought, poor harvests, restrictive tariff and fiscal policies, low commodity prices, and competition from abroad. A downward swing in the business cycle exacerbated their plight, and many farmers in the Plains filed for

Other than overproduction, another economic issue that drastically effected farmers was the Panic of 1893 that left millions of Americans unemployed, hungry, and homeless. In Susan Orcutt’s leter to Lorenzo D. Lewelling, she states, “I had the prettiest garden that you ever seen and the hail ruined it and I have nothing to look at my husband went a way to find work and came home last night and told me that would have to Starve he has bin in ten countys and did not get no work.” (Document H). Economic conditions such as overproduction, the Panic of 1893, and sharecropping systems that developed from it only led to the downfall of farmers.

Farmers where Some of the main people who were affected by not only the great depression , but the dust bowl as well. Farmers were getting paid by AAA to reduce the land used to raise livestock and to produce products such as corn, wheat, tobacco, etc,these were just some of the problems that farmers suffered. Another reason why this event affected the farmers is because of the fact that farmers over farmed their land trying to get it to grow which made it worse and all these dried up crops turned to dust layering their houses so they had to abonden their lifes to head west. Companies paid farmers to plant clover and alfalpha instead of cotton and wheat to reduce not only land usage, but under priced products. Last but not least one of

In retrospect, farmers found themselves worse off because the National Recovery Administration had been very successful in forcing up prices that consumers, including farmers had to pay for manufactured goods. Unfortunately, massive government intervention in agriculture never went away.

During the time period of 1865-1900 American agriculture changed greatly. Several components such as technology, government policy, and economic conditions caused agriculture to transform in the way it did. The main advancements in technology were new farming machinery and the growth in the railroad, both benefited the farmers grow and move crops. The government policies seemed to never favor the farmers, they passed laws making it harder for farmers to make a living. The economic conditions for farmers became rough due to the price of crops dropping from overproduction.

The Gilded Age made the United Sates shift from an agricultural society to more of an industrial society. Since, many southerners from down South moved out of the rural cities to the urban cities to find a better life and employment, it caused the death of the agricultural domination. The transformation caused tremendous difficulty to the farmers. Farmers faced a lot of problems such as the overproduction of crops, currencies policies and high tariffs. The overproduction of crops caused the farmers to dramatically lower down their prices, cotton was the major crop that went down dramatically , it went from 15 cents per pound to 6 cents per pound. Most farmers mostly made their profits by selling cotton. Farmers operated from borrowing deflated money with high tariffs and hard money rather than soft money, which made it harder for them to pay back loans. Farmers were the main victims upon the tariffs policy. They were forced to buy manufactured goods on high prices while selling their product at low prices. The issue with the hard money policy was that the government had a monetary policy that contracted on the money circulation. The hard money equal the deflation while the soft money equal to the inflation, the policies only benefited the industrialized industry but not the farming

Arguing that the majority of farmers during the Great Depression benefitted from the government policies produced through President Roosevelt’s New Deal is an inaccurate claim. While history textbooks highlight the improvement of finances for people in rural areas in the United States of America, the personal experiences of family farmers contradict those textbooks. Writers of textbooks about American history should consider looking further into the delicate topic of how the Great Depression effected common farm families. In the West, farmers endured the Dust Bowl. In the North, people in rural areas competed to make a profit. Although statistics show the most economic damage of the Great Depression beginning at the end of 1929, small farm families refer to the effects of the Depression dating back as early as 1925 since government policies mostly benefitted large farm industries as small farms were forced to foreclose.

“This Nation asks for action; and action now” (pg.92). Referring to the New Deal, included was living standards and to prevent future crisis. A goal was to get people back to work. One of the groups that were hit the hardest due to the Great Depression was Farmers. There was an overproduction of products and not enough people consuming or buying their products. Around World War I, prices of crops were very low and the farmers were not making any income, leaving the farmers in trouble when the depression rolled around. With the New Deal, FDR established Agricultural Adjustment Act and prices of crops were raised.

The Agricultural Adjustment Act in Great Depression Era in 1933 was a the United States federal law, part of the New Deal, which reduced agricultural production by paying farmers subsidies not to plant on part of their land and to kill off excess livestock. Its purpose was to reduce crop surplus in order to effectively raise the value of crops. This act represented a transformation about government’s role playing in the country. Before the period, the government only taxed import or export; it didn’t touch economy. But the AAA showed that government started to have power to change its economy.

The AAA was set into motion during May of 1933, in order to offer relief to all the struggling farmers. Thinning out the amount of crop surplus was an obvious solution to overproduction, so the Agricultural Adjustment Act offered farmers subsidies to not plant on part of their land. On top of that they were also offered subsidies to kill any excess livestock. Over time the trimming of outgoing crops and livestock would reduce the overproduction of both commodities while still paying the farmers so they could survive.

It all started in 1933 with an act titled Agricultural Adjustment Act (AAA). This act built the foundation for the now program titled SNAP. During this time period there was a program called the FSRC which stands for the Federal Surplus Relief Corporation. This happen to take place during the time of the great depression when values for produces fell severely and farms across the nation were having a difficult time dealing with the excess supply.

2. The Agricultural Adjustment Administration (AAA), which helped farmers by paying them not to produce crops; thereby, keeping their income from dropping by overproducing certain crops. Since less was being grown, the price for farm goods would rise. The government said that they would also pay farmers to plow some crops under and destroy some of the surplus.

Total unemployment rose from just over three percent in 1929 to just over twenty five percent in 1933, and did not increase back up to just over seventeen percent in 1939. By 1933 wages had fallen in every industry, with construction being affected the worst, where wages had dropped by half. Wages in 1933 were twenty five percent lower than in 1929. These decreases in wages caused decreases in purchasing across the board. Durable and nondurable sales alike decreased. Nondurable goods fell by forty one percent, where durable goods suffered the most and declined by sixty two percent. In the midst of the depression farmers also had a difficult time where usually they would have been able to survive. Unfortunately, the Great Plains were hit hard with both a drought and dust storms. The dust storms destroyed everything in their paths, leaving farmers without their crops. Small farmers were hit the hardest. Even before the dust storms hit, the invention of the tractor drastically cut the need for manpower on farms. The small farms were usually already in debt, borrowing money for seed and paying it back when their crops came in. When the dust storms damaged the crops, not only could the small farmer not feed himself or his family, he could not pay back his debt. Banks would foreclose on the farms and the farmer and his family would be both homeless and unemployed. Millions of people were out of work across the United States. Many people hit the road

The new production caused an increase in the need of workers, thus causing the unemployment rate to decrease. One way the New Deal was able to give jobs to the jobless was via the Civilian Conservation Corps. This program gave jobs to civilians between the ages of eighteen and twenty-five; they were planting trees, building dams, and stopping the erosion of the soil. By August of 1933, 300,000 men were at work. Roosevelt also aided the farmers through the Agricultural Adjustment Act. This act helped farmers meet their mortgages, which went hand in hand with the Home Owners' Loan Corporation. Through these acts the government used millions of dollars to try to relieve farmers' economic crises. But by doing this, Roosevelt caused an increase in the national debt.