The Agricultural Adjustment Act aimed at raising the prices of agricultural commodities by offering cash incentives to voluntarily limit farm production, thereby increasing prices.
What was the Agricultural Adjustment Act?
This federal legislation was part of Franklin Roosevelt's New Deal that aimed at offering the U.S. farmers a subsidies in exchange for limiting their production of certain crops.
As an attempt to create relief for American farmers, these subsidies of the New deals were meant to limit overproduction so that crop prices could increase.
Hence, the legislation offered cash incentives to the farmers to voluntarily limit farm production, thereby increasing prices.
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