Answer to Question #211216 in Microeconomics for maphula ngwenya

Question

Analyse agricultural legislation which governs non-marketing agricultural activities

Answer 1

The Agricultural Marketing Act of 1929 established agricultural marketing. The Act was enacted in order to prevent crop prices from spiraling downward. The Act aimed to assist farmers in the purchase, sale, and storage of agricultural surpluses. Financial aid was generously supplied to farm organizations. The Act established a number of federal initiatives to provide financial assistance to farmers. Crop price stabilization programs have also been implemented. The Act established plans for farmers to organize themselves and their markets in order to cope with oversupply and declining crop prices. The Act served as the foundation for all subsequent price support subsidy programs.

Agricultural cooperatives were formed to keep farm prices stable. Farmers must agree voluntarily to minimize commodity surpluses in order for cooperatives to reduce surpluses. The board used two strategies to keep crop prices from going too low. Land under cultivation was reduced, vast quantities of commodities were purchased, and the products were held and stored until market prices rose. The board of directors set aside monies to lend to the cooperatives. Furthermore, the federal farm board established marketing cooperatives. Cotton, grain, and wool marketing cooperatives were formed. The marketing cooperatives arranged for the agricultural products to be stored. Several changes were introduced in 1933 and 1935 to correct the flaws of the Agricultural Marketing Act of 1929. The board's functions were moved to the Farm Credit Administration's Governor. The Farm Credit Administration is a separate federal agency in the executive branch. The Federal Farm Credit Board and the Governor of the Farm Credit Administration make up the majority of the agency. Other individuals employed in carrying out the Farm Credit Administration's activities, authorities, and duties are included in the agency.

The Act supported successful retailing of agricultural commodities in interstate and international commerce to put the agricultural business on an equal footing with other industries. The Act attempted to safeguard, control, and stabilize interstate and international agricultural commodity and agricultural food product marketing currents. Associations and corporations operate independently of one another. A producer-owned and producer-controlled cooperative association, as well as other entities, make up the agricultural marketing system. The agency is in charge of preventing and controlling agricultural commodity surpluses. The agency follows a strict production and distribution schedule.