Which New Deal law aimed to raise crop prices by paying farmers to leave land unplanted and was ruled unconstitutional by the Supreme Court?

Which New Deal law aimed to raise crop prices by paying farmers to leave land unplanted and was ruled unconstitutional by the Supreme Court?

• A. Agricultural Adjustment Act (AAA)
• B. Soil Conservation Act
• C. Farm Subsidy Act
• D. Agricultural Stabilization Act

Answer: (A)

The question tests understanding of how the New Deal tried to lift farm prices by cutting production and paying farmers to idle land. The Agricultural Adjustment Act embodied this approach by offering subsidies to farmers to reduce planting or leave land unplanted, aiming to reduce crop supply and push prices up. However, the Supreme Court ruled that funding those subsidies through a processing tax was unconstitutional, in United States v. Butler, because Congress overstepped its powers and improperly used taxation to regulate agriculture. The ruling blocked the original mechanism, though the broader goal of price supports and acreage reduction was revived later in a revised act with lawful funding. The other options describe different farm programs that didn’t center on paying farmers to idle land to raise prices.

The question tests understanding of how the New Deal tried to lift farm prices by cutting production and paying farmers to idle land. The Agricultural Adjustment Act embodied this approach by offering subsidies to farmers to reduce planting or leave land unplanted, aiming to reduce crop supply and push prices up. However, the Supreme Court ruled that funding those subsidies through a processing tax was unconstitutional, in United States v. Butler, because Congress overstepped its powers and improperly used taxation to regulate agriculture. The ruling blocked the original mechanism, though the broader goal of price supports and acreage reduction was revived later in a revised act with lawful funding. The other options describe different farm programs that didn’t center on paying farmers to idle land to raise prices.