Agricultural Marketing Act of 1929

The Agricultural Marketing Act of 1929, under the administration of Herbert Hoover, established the Federal Farm Board from the Federal Farm Loan Board established by the Federal Farm Loan Act of 1916 with a revolving fund of half a billion dollars. The original act was sponsored by Hoover in an attempt to stop the downward spiral of crop prices by seeking to buy, sell and store agricultural surpluses or by generously lending money to farm organizations. Money was lent out to the farmers in order to buy seed and food for the livestock, which was especially important since there had previously been a drought in the Democratic South. However, Hoover refused to lend to the farmers themselves, as he thought that it would be unconstitutional to do so and if they were lent money, they would become dependent on government money.