Changes

The Agricultural Adjustment Act (AAA) (P.L. 73-10 of May 12,  1933) restricted production by reducing crop acreage and animal production.  The first AAA used the "domestic allotment" system to tell farmers how many acres to use. Producers of corn, cotton, dairy products, hogs, rice, tobacco, and wheat would decide on production limits for their output. Every farmer was told how much of their land to use. Farmers rented their unused their land directly to the government and were paid for that.  They were not allowed to grow crops on this rented land, and if any had started in spring 1933 they had to be plowed over.  A farmer could refuse to participate, but then would have a 50% tax on his sales. They all participated. Processors had to pay a new tax to the federal government, which was used for the rental payments to farmers. The rental income was new cash into rural America.  More important, the farm output was lower so the prices of crops and animals increased, thus solving the problem of very low crop prices.

The Agricultural Adjustment Act (AAA) (P.L. 73-10 of May 12,  1933) restricted production by reducing crop acreage and animal production.  The first AAA used the "domestic allotment" system to tell farmers how many acres to use. Producers of corn, cotton, dairy products, hogs, rice, tobacco, and wheat would decide on production limits for their output. Every farmer was told how much of their land to use. Farmers rented their unused their land directly to the government and were paid for that.  They were not allowed to grow crops on this rented land, and if any had started in spring 1933 they had to be plowed over.  A farmer could refuse to participate, but then would have a 50% tax on his sales. They all participated. Processors had to pay a new tax to the federal government, which was used for the rental payments to farmers. The rental income was new cash into rural America.  More important, the farm output was lower so the prices of crops and animals increased, thus solving the problem of very low crop prices.

The AAA was led by George Peek and Chester Davis, under the general supervision of Agriculture Secretary [[Henry C. Wallace]]. When left-wing elements in the AAA tried to slip through provisions to build a political base among sharecroppers, they were immediately fired by Davis, with the explicit approval of Wallace and President Roosevelt.  

The AAA was led by George Peek and Chester Davis, under the general supervision of Agriculture Secretary [[Henry A. Wallace]]. When left-wing elements in the AAA tried to slip through provisions to build a political base among sharecroppers, they were immediately fired by Davis, with the explicit approval of Wallace and President Roosevelt.  

The goal was to increase farm prices up to the point of "parity". "Parity" was the relationship between urban and rural costs that prevailed in 1910-14, in the "golden age" of farming.   

The goal was to increase farm prices up to the point of "parity". "Parity" was the relationship between urban and rural costs that prevailed in 1910-14, in the "golden age" of farming.   

Farm incomes increased significantly in the first three years of the New Deal. Consumers paid higher prices than in 1932-33, but food was still 25% lower in price than in the 1920-31 period. A Gallup Poll revealed that a majority of the American public opposed the AAA, but the majorities existed in Congress to pass it.  The AAA established an important and long-lasting federal role in the planning on the entire agricultural sector of the economy. [[File:Food$21-40.jpg]]  

Farm incomes increased significantly in the first three years of the New Deal. Consumers paid higher prices than in 1932-33, but food was still 25% lower in price than in the 1920-31 period.<ref> For detailed price data see [http://www2.census.gov/prod2/statcomp/documents/1938-06.pdf ''Statistical Abstract: 1938'' (1939) ch 13 pp 306ff]; for farm income see ''ibid.'' ch 25 pp. 616ff/ref> A Gallup Poll revealed that a majority of the American public opposed the AAA, but the majorities existed in Congress to pass it.  The AAA established an important and long-lasting federal role in the planning on the entire agricultural sector of the economy. [[File:Food$21-40.jpg]]  

===Sharecroppers and the 1935 purge of the far left===

===Sharecroppers and the 1935 purge of the far left===

One criticism from the left was that in the cotton belt South the AAA favored rich landowners over the impoverished tenant farmers and sharecroppers.  The allegation was false but was widely spread in history books.  (The AAA required land owners to maintain the same number of tenants and croppers as before.)  

One criticism from the left was that in the cotton belt South the AAA favored rich landowners over the impoverished tenant farmers and sharecroppers.  The allegation was false but was widely spread in history books.  (The AAA required land owners to maintain the same number of tenants and croppers as before.)