Relating to Land Tenure:
and Rural Development Programs
THIS CHAPTER, A continuation of the discussion begun in Chapter 4, is concerned with production control programs in agriculture and with programs for depressed rural areas, as these relate to land tenure.
Since the early 1930's the federal government has assisted farmers directly through various programs that influenced the demand for and supply of farm products. The first several such programs were emergency attempts to alleviate farm distress during the Great Depression that began in 1929.
During the period 1929 to 1932 the Federal Farm Board attempted unsuccessfully to halt the drop in wheat and cotton prices by making loans to national co-operatives marketing these commodities. It slowed somewhat the drop in these prices, until it ceased price-support operations and began to liquidate its holdings; then prices again dropped drastically.
The Agricultural Adjustment Act of 1933 authorized a wide variety of governmental activities to raise the level of farm prices. The act was to operate as follows: (1) relief was to be brought to the farming population by improving farm incomes through increasing the prices of farm products and through benefit payments; (2) the latter were to be financed largely out of special excise taxes on the commodity, so that consumers and processors would pay a fair exchange value