Originally framed to deal with such problems nationwide, it was gradually reduced in scope, and was reenacted in 1943 to apply solely to farmers in the Prairie Provinces.
By 1934, the farm debt problem in Canada, which had been provoked by the Great Depression, reached a scale where provincial moratory legislation[2][a] could not resolve it, as it could not remove the farmer from his position of default.
[5] The initial draft submitted by the Department of Finance addressed only voluntary arrangements between farmers and their creditors, but Bennett sent it back to add provisions designed to adjust principal and interest obligations to the productive value of the farm.
MacPherson, a former Attorney General and Provincial Treasurer of Saskatchewan,[9] was appointed to oversee the Act's initial implementation,[10] before permanent oversight was assigned to staff in the Department.
[34] The FCAA (and by extension the CCAA) was held to be constitutional by the Supreme Court of Canada,[35] and the Judicial Committee of the Privy Council subsequently agreed.