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Agricultural Adjustment Act of 1938

 

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Agricultural Adjustment Act of 1938



 
 
The Agricultural Adjustment Act of 1938 was legislation in the United States that resulted from the unconstitutionality of previous New Deal
New Deal

The New Deal was the name that United States President of the United States Franklin D. Roosevelt gave to a sequence of central economic planning and economic stimulus programs he initiated between 1933 and 1938 with the goal of giving aid to the unemployed, reform of business and financial practices, and recovery of the Economy of the Unite...
 farm legislation (Agricultural Adjustment Act
Agricultural Adjustment Act

The Agricultural Adjustment Act restricted production during the New Deal by paying farmers to reduce crop area. Its purpose was to reduce crop surplus so as to effectively raise the value of crops, thereby giving farmers relative stability again....
 of 1933) and the success of the Soil Conservation and Domestic Allotment Act
Soil Conservation and Domestic Allotment Act

The Soil Conservation and Domestic Allotment Act is a United States federal law that allowed the government to pay farmers to reduce production so as to "conserve soil", prevent erosion, and accomplish other minor goals....
 passed in 1935.

During the first session of the 75th United States Congress
75th United States Congress

The Seventy-fifth United States Congress was a meeting of the legislative branch of the United States federal government, composed of the United States Senate and the United States House of Representatives....
 an extension of the soil conservation plan was given consideration. Through the summer of 1937 hearings of farm leaders were conducted in various states; but the second session adjourned while the farm bill was still in the hands of a conference committee.






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The Agricultural Adjustment Act of 1938 was legislation in the United States that resulted from the unconstitutionality of previous New Deal
New Deal

The New Deal was the name that United States President of the United States Franklin D. Roosevelt gave to a sequence of central economic planning and economic stimulus programs he initiated between 1933 and 1938 with the goal of giving aid to the unemployed, reform of business and financial practices, and recovery of the Economy of the Unite...
 farm legislation (Agricultural Adjustment Act
Agricultural Adjustment Act

The Agricultural Adjustment Act restricted production during the New Deal by paying farmers to reduce crop area. Its purpose was to reduce crop surplus so as to effectively raise the value of crops, thereby giving farmers relative stability again....
 of 1933) and the success of the Soil Conservation and Domestic Allotment Act
Soil Conservation and Domestic Allotment Act

The Soil Conservation and Domestic Allotment Act is a United States federal law that allowed the government to pay farmers to reduce production so as to "conserve soil", prevent erosion, and accomplish other minor goals....
 passed in 1935.

During the first session of the 75th United States Congress
75th United States Congress

The Seventy-fifth United States Congress was a meeting of the legislative branch of the United States federal government, composed of the United States Senate and the United States House of Representatives....
 an extension of the soil conservation plan was given consideration. Through the summer of 1937 hearings of farm leaders were conducted in various states; but the second session adjourned while the farm bill was still in the hands of a conference committee. In his message of January 3, 1938, President Franklin D. Roosevelt
Franklin D. Roosevelt

Franklin Delano Roosevelt , often referred to by his initials FDR, was the List of Presidents of the United States President of the United States....
 emphasized the work of the conference committee and hoped that a "sound, consistent measure" would be adopted. After some debate in Congress the President, on February 16, signed the measure providing "for the conservation of national soil resources." The Soil Conservation Act was to be continued as a permanent farm policy; and to promote the program, national land allotments were to be fixed at a point "to give production sufficient for domestic consumption, for exports, and for reserve supplies." To give farmers an incentive to operate within the allotments, payments were to be made by the Government. In order that "an adequate and balanced flow of agricultural commodities" might be maintained, the statute established an ever-normal granary
Ever-normal granary

Overview The ever-normal granary is an economic term that refers to a buffer stock scheme where an agricultural product is stored in a granary at constant supply in an effort to stabilize prices....
 program through a system of nonrecourse loans
Nonrecourse debt

A nonrecourse debt or non-recourse debt or nonrecourse loan is a secured loan that is security interest by a pledge of collateral , typically real property, but for which the borrower is not personally liable....
. "Four research laboratories are to be established at Peoria, Illinois
Peoria, Illinois

Peoria is the largest city on the Illinois River and the county seat of Peoria County, Illinois, Illinois, in the United States. As of the United States Census, 2000, the city was the sixth largest in Illinois and had a total population of 112,936....
, in the New Orleans area, in the Philadelphia area, and in the San Francisco area, to study farm needs. And if two thirds of the farmers participating in the program agreed, marketing quotas in tobacco, corn, wheat, cotton, and rice might be fixed by the Secretary of Agriculture.

Sources

  • Dictionary of American History edited by James Truslow Adams
    James Truslow Adams

    James Truslow Adams was an United States writer and historian.Born in Brooklyn, New York, Adams took his bachelor's degree from the Polytechnic University of New York in 1898, and a master's degree from Yale University in 1900....
    , New York: Charles Scribner's Sons, 1940