The Agricultural Adjustment Act, which restricts agricultural production through government purchase of livestock for slaughter and paying subsidies to farmers when they remove land from planting, is signed into law by President Franklin D. Roosevelt.

The Agricultural Adjustment Act (AAA) was a United States federal law of the New Deal era designed to boost agricultural prices by reducing surpluses. The government bought livestock for slaughter and paid farmers subsidies not to plant on part of their land. The money for these subsidies was generated through an exclusive tax on companies that processed farm products. The Act created a new agency, the Agricultural Adjustment Administration, also called "AAA" (1933–1942), an agency of the U.S. Department of Agriculture, to oversee the distribution of the subsidies. The Agriculture Marketing Act, which established the Federal Farm Board in 1929, was seen as an important precursor to this act. The AAA, along with other New Deal programs, represented the federal government's first substantial effort to address economic welfare in the United States.

Livestock are the domesticated animals that are raised in an agricultural setting to provide labor and produce diversified products for consumption such as meat, eggs, milk, fur, leather, and wool. The term is sometimes used to refer solely to animals which are raised for consumption, and sometimes used to refer solely to farmed ruminants, such as cattle, sheep, and goats. Livestock production are mainly a source for farm work and human consumption.

A subsidy, subvention or government incentive is a type of government expenditure for individuals, households, or businesses.

Franklin Delano Roosevelt, also known as FDR, was the 32nd president of the United States from 1933 until his death in 1945. He is the longest-serving U.S. president, and the only one to have served more than two terms. His first two terms were centered on combating the Great Depression, while his third and fourth saw him shift his focus to America's involvement in World War II.