Federal subsidies became a cornerstone of farm policy. Many small farmers were forced from their land. Sharecroppers were hurt by the policy of domestic allotment.
From Wikipedia:The Agricultural Adjustment Act of 1938 (P.L. 75-430) was legislation in the United States that was enacted as an alternative and replacement for the farm subsidy policies, in previous New Deal farm legislation (Agricultural Adjustment Act of 1933), that had been found unconstitutional. It also responded to the success of the Soil Conservation and Domestic Allotment Act passed in 1935.See the related Wikipedia link below for more information.
The National Recovery Administration and the Agricultural Adjustment Agency, both part of the New Deal, were accused of being unconstitutional. Small business owners felted disadvantaged by big businesses, who had a part in the drafting of the NRA's codes. Organized labor was upset because they were effectively shut out. In the Supreme Court case Schecter vs. United States, the agency was ruled as unconstitutional. The Agricultural Adjustment Agency was accused of hurting southern tenant farmers (Sharecroppers) in the south. Cotton planters took the federal money, removed the land from production then displaced the sharecroppers. In the case of United States vs. Butler, the court ruled the AAA was unconstitutional as well.
The Morrill Land-Grant Colleges Act .
In 1933, Congress established the Agricultural Adjustment Administration and passed the Agricultural Adjustment Act which levied taxes against certain farm commodity processors to fund a program designed to increase farmers' profits on their products by paying the farmers not to grow crops. This was intended as a direct control of supply and demand designed to restore economic prosperity under Roosevelt's New Deal.The government initially allocated $100,000,000 from the Treasury to support the program.Butler, the respondent in this case, was the receiver for Hoosac Mills Corporation. The company was presented with an assessment for "processing and floor taxes" on cotton purchased subsequent to the Act. The receiver advised the mill not to pay the tax, on the theory it was constitutionally invalid.Butler filed for relief in District Court, but the Court found in favor of the government. Butler then petitioned the US Court of Appeals for the First Circuit, which agreed the tax was unconstitutional and reversed the lower court decision.The United States appealed the First Circuit's reversal to the US Supreme Court, claiming the processors didn't have standing to question taxes levied against them by Congress. They also argued Article I, Section 8, Clause 1 of the Constitution provides Congress has the power "to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States."The Court held that the Processors had standing to question validity of the tax, and that the Act invaded the powers reserved to the States under the 10th Amendment. Regulation and control of agricultural production properly belonged to the States and were beyond the reach of the federal government.The Act was considered an attempt to regulate farmers' activities through economic coercion. The federal government, while empowered to levy taxes, cannot appropriate and spend money when the end result is unconstitutional.The Court ruled Congress did not have a right to ratify the Agricultural Adjustment Act of 1933*, and affirmed the Circuit Court ruling, finding in favor of Butler.*(Although the case was decided in 1936, the basis for the decision was made on the Act as passed in 1933 and not on the 1935 amendment to the Act.)Subsequent LegislationCongress responded to the Supreme Court decision by passing the Soil Conservation and Domestic Allotment Act, which paid benefits for planting soil-building crops, rather than staples.This was followed by the Agricultural Adjustment Act of 1938, which made loans to farmers of in years of high yield to store surplus, which it could then sell in years of low yield. The 1938 Act was in effect until World War II, when it became necessary to increase food production.Case Citation:United States v. Butler, 297 US 1 (1936)
Jefferson wanted small Federal Government, but larger State Governments. He didn't want the Federal Government to make all of the decisions, he wanted the states to focus on the people of that state instead of the Federal Government to control everything.
Miriam S. Farley has written: 'Agricultural adjustment under the new deal' -- subject(s): Agricultural administration, Agriculture, United States, United States. Agricultural Adjustment Administration
Howard Kester has written: 'Revolt among the sharecroppers' -- subject(s): Cotton growing, History, Sharecroppers, Sharecropping, Southern Tenant Farmers' Union, Tenant farmers, United States, United States. Agricultural Adjustment Administration
From Wikipedia:The Agricultural Adjustment Act of 1938 (P.L. 75-430) was legislation in the United States that was enacted as an alternative and replacement for the farm subsidy policies, in previous New Deal farm legislation (Agricultural Adjustment Act of 1933), that had been found unconstitutional. It also responded to the success of the Soil Conservation and Domestic Allotment Act passed in 1935.See the related Wikipedia link below for more information.
P. P Wallrabenstien has written: 'Estimated gross cash income from the sale of agricultural products from the farm, and from Agricultural Adjustment Administration payments for Ohio farms, by counties, 1939' -- subject(s): Farm income, Farm produce, Marketing, United States, United States. Agricultural Adjustment Administration
Its purpose was to reduce crop surplus so as to effectively raise the value of crops. More information is available at the related link below.
The US Department of Agriculture is devoted to federal programs relating to the raising of crops. Many states and counties have agricultural support systems often in co-operation with state universities.
Land act
Fred Fouse Lininger has written: 'The relation of the basic-surplus marketing plan to milk production in the Philadelphia milk shed' 'Dairy products under the Agricultural adjustment act' -- subject(s): Agricultural administration, Agriculture, Dairy products, Economic aspects, Economic aspects of Agriculture, Marketing, United States, United States. Agricultural Adjustment Administration
As of 2020, it is estimated that approximately 2.6 million people are employed in agricultural jobs in the United States. This includes farmers, farm workers, agricultural managers, and others involved in agricultural production.
Chester C. Davis has written: 'What's ahead of the A. A. A.?' -- subject(s): Agriculture and state, United States, United States. Agricultural Adjustment Administration 'Report on rural credit in India' -- subject(s): Agricultural credit, Rural credit
The Bank of the United States, particularly the Second Bank established in 1816, primarily focused on stabilizing the national currency and managing federal funds rather than directly facilitating loans to farmers. However, it did provide credit and financial services that indirectly benefited agriculture by supporting state banks, which could then extend loans to farmers. The federal government did implement various programs over the years to assist farmers, but these were not directly through the Bank of the United States.
The Federal agency established under the Merrill Land Grant Act is the United States Department of Agriculture (USDA). The act, passed in 1862, aimed to promote agricultural education and research by granting land to states to fund agricultural colleges. This legislation laid the foundation for the establishment of land-grant universities, which played a crucial role in advancing agricultural practices and education in the United States.