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Agricultural Adjustment Act of 1938 set up grain reserves in the US


Declaration of policy: Sec. 2: “…to regulate interstate and foreign commerce in cotton, wheat, corn, tobacco, and rice to the extent necessary to provide an orderly , adequate, and balanced flow of such commodities in interstate and foreign commerce through storage of reserve supplies, loans, marketing quotas,…” (31)

“’Reserve supply level,’ in the case of corn, shall be a normal year’s domestic consumption and exports of corn plus 10 per centum of a normal year’s domestic consumption and exports, to insure a supply adequate to meet domestic consumption and export in years of drought, flood, or other adverse conditions, as well as in years of plenty.” (42)

“The provisions of the Part affording a cooperative plan to wheat producers are necessary in order to minimize recurring surpluses and shortages of wheat in interstate and foreign commerce, to provide for the maintenance of adequate reserve supplies thereof, and to provide for an adequate flow of wheat and its products in interstate and foreign commerce. The provisions hereof for regulation of marketings by producers of wheat whenever an abnormally excessive supply of such commodity exists are necessary in order to maintain an orderly flow of wheat in interstate and foreign commerce under such conditions.” (53)

Agricultural Adjustment Act of 1938, Pub. L. No. 75-430, 52 Stat. 31 (1938), accessed August 18, 2014, http://nationalaglawcenter.org/wp-content/uploads/assets/farmbills/1938.pdf.

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