1936 was an eventful year in the history of the farmers' Nation-wide agricultural programs.
On the 6th day of January the United States Supreme Court, in the Hoosac Mills decision, invalidated the production-control and processing-tax provisions of the Agricultural Adjustment Act, and brought the farmers' program to a complete stop.
But instead of terminating the farmers' efforts permanently, the decision of the Supreme Court in the Hoosac Mills case had the effect of hastening a transition which had long been planned. This was the transition from the temporary emergency phase of the adjustment programs to a long-time phase which would give a larger place to soil conservation and improved farm-management practice.
Such a transition was originally planned by the Agricultural Adjustment Administration in late 1934 and early 1935. It was the subject of discussions with representatives of farmers, agricultural colleges, and extension workers in a series of regional conferences in 1935.
President Roosevelt in a statement on October 25, 1935, had announced the Administration's intention to shift the program to a longtime basis. Hence the Hoosac Mills decision, when it came, precipitated as a sudden change that which had been planned as a gradual one. On February 29, 1936-less than 2 months after the Court's decision-Congress enacted a new law to replace the invalidated portions of the Adjustment Act. This new law was the Soil Conservation and Domestic Allotment Act.
Immediately upon provision by Congress of funds to carry it out, the Nation-wide soil-conservation program authorized by the new law was launched on March 20, 1936.
While putting this program into effect in all parts of the country as rapidly as possible, the Agricultural Adjustment Administration had to start work on a new and improved soil program for 1937. Meetings were held with farmers in communities and counties of many States, and recommendations were assembled for the 1937 plans.
Meanwhile the marketing agreement and surplus-removal programs affecting a variety of farm commodities were going forward. Also payments earned by farmers under the production-adjustment programs previous to January 6, 1936, were made from special funds appropriated for the purpose by Congress.
Operation of the 1936 program was complicated by the second great drought within 3 years, which early in the summer struck the western corn and hard-wheat belts and part of the cotton and tobacco belts of the South. Once more the farmers used their program to pool energies in combatting the effects of drought.