How did the Agricultural Adjustment Administration (AAA) affect the farming industry?

Question

It decreased farm production but also
drove down the price of crops.

It paid farmers not to produce which
helped many large commercial farms but
small farms received little relief.

It ramped up production for cotton and
livestock in order to meet demand.

It improved conditions for sharecroppers
by increasing farm production.

Answer 1

The most accurate statement regarding the impact of the Agricultural Adjustment Administration (AAA) on the farming industry is:

It paid farmers not to produce which helped many large commercial farms but small farms received little relief.

The AAA, created during the New Deal in the 1930s, aimed to raise crop prices by controlling production. It encouraged farmers to reduce their output, leading to reduced supply which, in theory, would drive prices up. While large commercial farms benefited from these payments, many small farms struggled to gain similar advantages due to various factors, such as lack of resources and the ability to participate in the program. This led to disparities between larger and smaller operations in the agricultural sector.