The agricultural marketing act was established in 1929, under the administration Of Herbert Hoover.
Since 2008 there was consistent need of agricultural relief. The act was introduced as a measure to stop the downward twirl of crop prices. The Act sought to Farmers in buying, selling, and storing agricultural surpluses.
Payback of Agricultural Marketing Act 1929
The Act was intended to subsidize farmers. This program provided better protection to farmers than previous programs to survive oversupply and falling crop prices. Money was lent out to the farmers in order to procure seed and food for the livestock.
Contribution of Agricultural Marketing Act 1929
The most vital contribution of the Act was the creation of a federal farm board. The board consists of eight members. The board shaped several agricultural cooperatives. The agricultural cooperatives were created to even out farm prices. In order to lessen product surplus, the cooperatives must get a hold of voluntary agreement from farmers. The board adopted two methods to bound the diminishing of a crop price. The methods adopted were:
- Tumbling the land under nurturing
- Purchasing large amounts of merchandise, and
- Holding and stock up the products from sale until market prices rose.
The board appropriated financial funds to loan the cooperatives. Moreover, the federal farm board shaped board’s marketing cooperatives. Marketing cooperatives were twisted to buy cotton, grains, and wool. The marketing cooperatives make available arrangements for storing the agricultural products.
On the other hand, the board failed to put an end to the steady decline in crop prices. The grounds for failure were:
- The board was not able to put off overproduction by the majority of farmers
- The Act provided for voluntary crop limitation programs.
In order to rectify the defects in the Agricultural Marketing Act, 1929 quite a few amendments were brought in 1933 and 1935. The supremacy of the board was relocated to the Governor of the Farm Credit Administration. The Farm Credit Administration is an independent agency in the executive branch of the government.
The agency is for the most part composed of the Federal Farm Credit Board and the Governor of the Farm Credit Administration. The agency comprises other personnel employed in carrying out the functions, powers, and duties vested in the Farm Credit Administration.
Effects of Agricultural Act 1929
The Federal Farm Board’s pay for of surplus and could not keep up with the production as farmers comprehend that they could just sell the government their crops, they Re implemented the use of fertilizers and other techniques to amplify production.
On the whole, the deflation could not be countered because of a massive fault in the bill. Production limit thumbs down. Had there been a production boundary, the devaluation might have been helped somewhat. The funds appropriated were sooner or later worn out and the losses of the farmers kept mounting.
To put the agricultural industry with other industries on one and the same footing, the Act encouraged of use merchandising of agricultural commodities in interstate and foreign commerce. The Act intended to protect, control, and stabilize the currents of interstate and foreign commerce in the marketing of agricultural commodities and agricultural food products.
The agency functions by:
- Diminish guesswork
- Preventing unproductive and extravagant methods of distribution
- Encouraging the organization of producers into effective associations for greater unity of effort in marketing and
- Prop up the organization and financing of a farm marketing system.
Association and corporations are working below their own power. The marketing system covers a producer-owned and producer-controlled cooperative association and other agencies. The agency put off and control spare in agricultural commodities.
The agency works by orderly production and distribution.