What is a key purpose of the Agricultural Adjustment Act?

What is a key purpose of the Agricultural Adjustment Act?

• A. To establish price controls on agricultural commodities
• B. To promote technological advancement in agriculture
• C. To raise crop prices by limiting production
• D. To encourage urbanization in farming communities

Answer: (C)

The key purpose of the Agricultural Adjustment Act (AAA), enacted in 1933 as part of the New Deal, was to raise crop prices by limiting production. This was done in response to the severe economic issues of the Great Depression, where overproduction led to falling prices and farmers struggling to maintain their livelihoods. By paying farmers to reduce crop acreage and, in some cases, to destroy existing crops, the AAA aimed to decrease supply in order to stabilize and eventually increase prices for agricultural products. This was intended to provide relief to farmers and support the agricultural economy by ensuring that farmers could earn a sufficient income from their crops. The act did not focus on establishing price controls or directly promoting technological advancement in agriculture; rather, it directly addressed the issue of overproduction. Additionally, it did not aim to encourage urbanization; instead, it was primarily centered on the agricultural sector and its economic stability.

The key purpose of the Agricultural Adjustment Act (AAA), enacted in 1933 as part of the New Deal, was to raise crop prices by limiting production. This was done in response to the severe economic issues of the Great Depression, where overproduction led to falling prices and farmers struggling to maintain their livelihoods.

By paying farmers to reduce crop acreage and, in some cases, to destroy existing crops, the AAA aimed to decrease supply in order to stabilize and eventually increase prices for agricultural products. This was intended to provide relief to farmers and support the agricultural economy by ensuring that farmers could earn a sufficient income from their crops.

The act did not focus on establishing price controls or directly promoting technological advancement in agriculture; rather, it directly addressed the issue of overproduction. Additionally, it did not aim to encourage urbanization; instead, it was primarily centered on the agricultural sector and its economic stability.