What problems was the AAA new deal trying to solve?

Answer 1

The farm policy of FDR was enacted as the Agricultural Adjustment Act, which the Supreme Court declared unconstitutional in 1936. It created an Agricultural Adjustment Administration (AAA) which was to enforce the principle of parity for which farmers had fought during the 1920s. Parity meant increasing farm income to what it was in the early 1900s. This was to be accomplished by restricting farm production. Growers of certain products, like wheat, corn,rice, hogs, etc., were paid subsidies to keep some of their land out of production. This would lower the amount of the production of the farm product but increase the price of the product in the market place. Consumers would pay more and more of the money would go to the farmer, in theory. Crops were plowed under and some excess animals were slaughtered but not sent to market. Results of this policy were mixed. Many could not understand how destroying crops and animals would help at a time when people were not getting enough to eat and had little money to pay for the increased prices. Some farms even had to trim their faming employees. This policy was saved (after the Supreme Court decision) by the Soil Conservation Act which kept parity and the limitation of production alive. Farm income did rise a bit, but not to the extent the administration hoped. Farm problems continued after World War II.