In the U.S., the first step for agricultural marketing was initiated by the Agricultural Marketing Act of 1929 . The Act was introduced as a measure to stop the downward twisting of crop prices. The Act sought to help farmers in buying, selling, and storing agricultural surpluses.
President Hoover wanted the government to help farmers use their own organizations to market produce more efficiently and adjust to demand. The Agricultural Marketing Act of 1929 created a Federal Farm Board with $500 million at its disposal to help existing farm organizations and to form new ones.
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 Farm Board is clearly the most costly and inexcusable legislative folly in our history. In a harebrained effort to enrich farmers , the Farm Board destabilized the grain trade, substantially reduced U.S. exports, and created a massive price-depressing surplus, greatly weakening American agriculture .
Farmers Grow Angry and Desperate. During World War I, farmers worked hard to produce record crops and livestock. When prices fell they tried to produce even more to pay their debts, taxes and living expenses. In the early 1930s prices dropped so low that many farmers went bankrupt and lost their farms.
The McNary–Haugen Farm Relief Act, which never became law, was a controversial plan in the 1920s to subsidize American agriculture by raising the domestic prices of farm products. It was supported by Secretary of Agriculture Henry Cantwell Wallace and Vice President Charles Dawes.
The Federal Farm Board was established by the Agricultural Marketing Act of 1929 from the Federal Farm Loan Board established by the Federal Farm Loan Act of 1916, with a revolving fund of half a billion dollars to stabilize prices and to promote the sale of agricultural products.
The Agricultural Marketing Act was passed and it set up the Federal Farm Board to lend money to the farmers that needed it.