MrThickRopes
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Simple English definitions for legal terms
Agricultural Adjustment Act
Read a random definition: National Association of Securities Dealers Automated
A quick definition of Agricultural Adjustment Act:
Agricultural Adjustment Act: A law made in 1933 that paid farmers to not grow crops so that the prices of crops would go up. The law was declared unconstitutional in 1936 because Congress had too much power. A new version of the law was made in 1938, but it was not as powerful as the first one.
A more thorough explanation:
The Agricultural Adjustment Act (AAA) was a federal law passed in 1933 that aimed to increase crop prices by paying farmers not to produce crops. The law was intended to help struggling farmers during the Great Depression.
For example, if a farmer had been growing corn on a certain plot of land, the AAA would pay the farmer to leave that land fallow for a season instead of planting more corn. This would reduce the supply of corn on the market, which would in turn raise the price of corn.
However, the Supreme Court declared the AAA unconstitutional in 1936 because it exceeded Congress's power to regulate commerce. A revised version of the law, the Agricultural Adjustment Act of 1938, was later passed with more limited provisions.