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The Agricultural Adjustment Act (AAA) was passed in 1933 to help farmers during the Great Depression. The AAA did this by paying farmers to use less land and stop overproducing so the prices on the market could be raised.

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Unlike, many other parts of the new deal, the need for the AAA started before the Great Depression. After World War I, the European agricultural system was struggling, so America's farmers started overproducing to give their surplus food to Europeans. However, in the late 1920's, European farms had recovered, no longer needing America's help. This was a problem because US farms were producing much more food than needed.

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"The farm leaders were unanimous in their opinion that the agricultural emergency calls for prompt and drastic action.... The farm groups agree that farm production must be adjusted to consumption" (18).

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"The farm leaders were unanimous in their opinion that the agricultural emergency calls for prompt and drastic action.... The farm groups agree that farm production must be adjusted to consumption" (18).

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-Henry A Wallace

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The AAA paid farmers to use less land and to produce less crops. This helped get rid of all the extra food that farmers were producing. Because there was no longer a surplus of food, the prices of agricultural products could be raised. This was part of the Bottom Up strategy because it gave money to the farmers at the bottom of the population, and the money was carried up to larger businesses and organizations.

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This is what it was like before the AAA.

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While for the most part, the AAA had support and was appreciated by most farmers, some disagreed with its setup. Some did not want to decrease their productions because while the prices would be lower, they could still make money off of the extra crops. Food processing companies also complained because they had to pay extra taxes because of the AAA.

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Subsidy was another big part of Roosevelt's plan for the AAA. Subsidy is when the government gives money to people or a business to help them keep their jobs and make money. During the Great Depression, farmers were having trouble making enough money to keep their farms, so the government gave them money and increased loans to help farmers through the hard times. This was and important part of the New Deal because money was given to farmers who could then increase the prices on their products, people would buy the higher priced products and then raise the prices one their own products, and the cycle would keep repeating until America's economy had recovered from the Depression.

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Three years after the AAA was passed, Supreme Court ruled it unconstitutional. The 10th Amendment states that any powers not stated in the Constitution are to be decided by the state governments, not the federal government. Because the Constitution did not give the federal government agricultural powers, Supreme Court ruled that the federal government did not have a right to pass the AAA.

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A couple years after the Supreme Court ruling, the US government passed another Agricultural Adjustment Act. This act had less government involvement and the only main part from the original AAA that still existed was subsidy.

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While little of the AAA stands today, the Agricultural Adjustment Act was a main role in helping America get out of the Great Depression.

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Very little of the AAA still stands today, but some of it is still in place. Our group asked Mrs. Neenan, wife of Mr. Neenan who owns Neenan Farms in Lima, what parts of the AAA affect them. She said that for the most part, the only part of the AAA that affect them was the farmers insurance. If there is a bad year (natural disaster, etc.) and the farm does not produce its normal amount of crops, the insurance will not give back the full amount of money the farm would have made, but it helps the farmers by giving them a little bit of money to help them get through the hard times.