Agricultural Adjustment Act of 1938

31, enacted February 16, 1938) was legislation in the United States that was enacted as an alternative and replacement for the farm subsidy policies, in previous New Deal farm legislation (Agricultural Adjustment Act of 1933), that had been found unconstitutional.

[3] The act was the first to make price support mandatory for corn, cotton, and wheat to help maintain a sufficient supply in low production periods along with marketing quotas to keep supply in line with market demand.

It established permissive supports for butter, dates, figs, hops, turpentine, rosin, pecans, prunes, raisins, barley, rye, grain sorghum, wool, winter cover-crop seeds, mohair, peanuts, and tobacco for the 1938-40 period.

The agriculture industry changed during the 1930s due to improvements in technology and exposed the south to more modern farming methods, as well as diversifying land.

The constitutionality of the act was challenged in the case of Wickard v. Filburn, which reached the United States Supreme Court in 1942.