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Agricultural Adjustment Administration (AAA)

The Agricultural Adjustment Administration was a former United States government agency originally established by the Department of Agriculture under the Agricultural Adjustment Act of 1933.The major goal was to reduce production of staple crops and in result raising farm prices and encouraging more diversified farming. This greatly helped farmers and the farmers were given benefit payments. The AAA had to right and authority to make payments to producers and buy extra crops. Cotton, wheat, corn and hogs were its first main target. By 1936, benefit payments by the AAA to farmers totaled a hefty $1,500,000,000. After a brief fight with the Supreme Court in 1936 over whether or not the agency was constitutional, Congress created the second AAA in 1938. The new and improved AAA was more complex and in no way relied on a special tax. During World War II and also after the Great Depression, it took the excessive demands to meet needs for the war. Finally, in 1945, the Production and Marketing Administration adopted the newly named Agricultural Adjustment Agency.