Great Depression Research Article from History Firsthand

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The farming crisis was another problem Roosevelt quickly addressed. Prices were bottoming out, and violence was erupting all over farm country. The U.S. Communist Party and other radical labor groups were swarming all over the Midwest rallying farmers and assisting protests. Many thought a revolution might occur. Roosevelt called farm leaders to Washington to help create the Agricultural Adjustment Act (AAA). The AAA paid farmers to produce less, which would raise market prices. This involved planting fewer crops or plowing under existing crops and slaughtering pigs and cows. The money for the subsidies would be raised by charging a tax to the food processing industry, such as canneries. It was a radical idea that shocked many, including Secretary of Agriculture Henry Wallace, who grudgingly implemented the program. The AAA did raise prices slightly but had an unexpected effect on tenant farmers. Tenancy was an old...

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This section contains 216 words
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Buy the Great Depression Encyclopedia Article
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Great Depression from History Firsthand. ©2001-2006 by Greenhaven Press, Inc., an imprint of The Gale Group. All rights reserved.
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