23-2

Mitch Lillard

In the mid 1930s rural areas suffered some of the most difficult social and economic times. The recovery in farms around America had begun. Supreme court struck down the AAA and in 1936 passed the Soil Conservation and Domestic Allotment act which paid farmers for reducing production of soil depleting crops such as cotton and wheat, and rewarded farmers who practiced good soil conservation. In 1938 congress passed a second AAA which brought back many features from the first AAA, but also took out parts such as processing tax to pay fro subsidies. During the mid 1930's 2 of every 5 farms in America were mortgaged and thousand s of small farmers lost their farms. Once they lost their farms the land would go to the mortgage holders, insurance companies, and banks. some farms became part of large mechanized or the farms were destroyed. In may 1935 congress created the Resettlement Administration to loan money to small farmers to buy more land. in 1937 the Administration was replaced by the Farm Security Administration which helped tenant farmers become land holders by loaning them more than 1 Billion dollars. They also set up housing for many tenant farmers. These Administrations and acts by the government greatly helped to get farms back on track and farming more carefully and productively.