The agricultural marketing act of 1929 was one of the most important acts taken up by the government during the New Deal. It set the framework for today’s farm programs. The act established the National Agriculture Feeding Program (NAFDP) which enabled the extension of the irrigation and other farm programs.
The agricultural marketing act of 1930 helped farmers by setting a fixed market price for agricultural products. It also gave incentives for rural landowners to develop and expand their land. Although the prices were fixed, however, they still depended on the decisions of brokers and speculators and this prevented them from fully stabilizing market prices.
The Federal government came up with various ways to increase agricultural subsidies in order to help farmers in their times of need. First, President Hoover’s administration passed the Emergency Plan for agriculture (EPSL) that provided federal assistance to farmers who had suffered losses due to natural disasters. The plan allowed the extension of credit and other financial aids to almost all registered farmers. This enabled them to absorb some of the hit taken by bad weather and increasing crop failures and to purchase additional equipment, seeds, fertilizers and other agricultural commodities.
Another important step taken by the government towards helping farmers was the establishment of the Famines Relief Act that encouraged the production of food and helped farmers in their time of need. This was the first major step towards establishing the agricultural policies that are still prevalent till this day. Finally, the government established the National Extension Service that helped farmers in administering and implementing the agricultural programs. These agencies have now become vital institutions that promote agriculture and rural development around the world. The introduction of the FAFSA program and then ESFTA helped to streamline the existing procedures of agricultural insurance and helped to save money on the part of the policy holder.
The agricultural marketing policy of the United States was amended in 1929 following the outbreak of the Great Depression. This was done by President Calvin Coolidge in order to stimulate the economy. Many farmers were deeply affected by this measure that eased the payment of their loans by reducing or eliminating the amount of the financial support they were receiving under previous government policies. Although the measures were welcomed by the mass farmers, it was too late as the whole economy remained low.
How did the agricultural marketing act of 1930 help farmers? The answer is simple – the act helped to stimulate the economy and its monetary policy. Although many economists opine that the EPSL program was a complete failure, others consider it as an important step in stabilizing the agricultural market and this helped farmers to improve their living standard. The main function of the ESFTA program was to protect the interests of the smallholders and farmers and this has made the modern world what it is today.