what was the causes/effects of the agricultural adjustment act
For the act by the same name in 1938, see Agricultural Adjustment Act of 1938. The Agricultural Adjustment Act (AAA) was a United States federal law of the New Deal era which reduced agricultural production by paying farmers subsidies not to plant on part of their land and to kill off excess livestock.Its purpose was to reduce crop surplus and therefore effectively raise the value of crops.he money for these subsidies was generated through an exclusive tax on companies which processed farm products. The Act created a new agency, the Agricultural Adjustment Administration, an agency of the U.S. Department of Agriculture, to oversee the distribution of the subsidies.