How Did The Agricultural Marketing Act of 1929 Help Farmers?
How did the agricultural marketing act of 1929 help farmers? This was a tough act to pass because it tried to regulate the whole agricultural market. The whole idea was to protect the farmers from any sort of exploitation especially with regards to the prices and the supply of agricultural products. The Act also helped to level the profit margins between the farmers and the manufacturers. The aim was to help the industry progress and to create more jobs for the people. It is important to know how the policy changed the market situation for the better.
When the first policies were introduced, it protected the interests of the small and the middle class farmers but it also benefited the large producers. In this case, the policy encouraged the farmers to save more money and to increase their production. This made the prices of the products go up to a level which could be afforded by the consumers. In this case, the policy helped to keep the prices down for the consumers. In effect, the producers received the benefit of the policy and the consumers paid the price.
The second part of the Act was meant for increasing the incomes of the middle class farmers. This helped them to buy more commodities and to raise their prices. The government could help farmers get loans at lower interest rates so that they could get the money to invest in different projects. In this way, both the producers and the consumers benefitted from the policy.
How was the agricultural products of this act distributed? The prices were fixed at the same level for all agricultural products and the money payment involved was also fixed. The law also allowed the exporters to charge higher fees for bringing foreign agricultural produce into the country under the supervision of the government.
How was the Act of 1929 enforced on the domestic market? Initially, it was applied to the whole agricultural production in the country but later, other industries were included which had not been covered in the original Act of 1930. The major agricultural products which had been made mandatory to be included in the market were sugar, wheat, milk, hops, cotton, jute and rubber. Some other products like oats and potatoes also became necessary to be made available on the market.
How was the Agricultural Marketing Act of 1929 helped farmers? Irrespective of the climatic conditions, the agricultural productions and the prices of agricultural products rose. This led to an increase in demand for agricultural products and to employment in the agricultural sector. The impact of this act has been felt in the present day and the outlook of the economy is looking up for the better.