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. Effects The Federal Farm Board's purchase of surplus could not keep up with the production; as farmers realized that they could just sell the government their crops, they reimplemented the use of fertilizers and other techniques to increase production. Overall, the deflation could not be countered because of
La Ley de Marketing Agrícola de 1929, bajo la administración de Herbert Hoover, estableció la Junta Federal de Agricultura de la Junta Federal de Crédito Agrícola establecida por la Ley Federal de Crédito Agrícola de 1916 con un fondo giratorio de medio millón de dólares. El acto original fue patrocinado por Hoover en un intento de detener la espiral descendente de los precios de las cosechas buscando comprar, vender y almacenar los excedentes agrícolas o prestando generosamente dinero a las organizaciones agrícolas. El dinero se prestó a los agricultores para comprar semillas y alimentos para el ganado, lo que era especialmente importante ya que había habido una sequía en el Sur Democrático. Sin embargo, Hoover se negó a prestar a los agricultores mismos, ya que pensó que sería inconstitucional hacerlo y si se prestaran dinero, se convertirían en dependientes del dinero del gobierno.