A Level History - America - Practice Exam

How did the Second Agricultural Adjustment Act seek to help farmers during overproduction periods?

1. By enforcing price controls on crops

2. By storing surplus crops and providing loans

3. By promoting international trade of agricultural products

4. By subsidizing retired farmers

The correct answer is: By storing surplus crops and providing loans

The Second Agricultural Adjustment Act was designed to address the issue of agricultural overproduction and the resulting decline in crop prices during the Great Depression. By storing surplus crops and providing loans, the Act aimed to reduce the amount of produce on the market. This storage would help stabilize prices by limiting supply, making it easier for farmers to manage their debts and sustain their livelihoods during difficult economic times. The provision of loans also meant that farmers had access to necessary funds to continue their operations and invest in future planting, thereby promoting recovery in the agricultural sector. The focus on storage and loans directly targeted the problem of overproduction. Other options, such as enforcing price controls on crops, were not part of this specific Act's implementation. Moreover, while promoting international trade and subsidizing retired farmers might seem beneficial, they did not address the immediate issues created by overproduction as effectively as creating a system for surplus management and financial aid did.