What did the US v Butler ruling decide in 1936?

• A. The Agricultural Adjustment Act was unconstitutional and farming relief was left to the states.
• B. The Agricultural Adjustment Act was unconstitutional, making farm relief a state matter.
• C. The Agricultural Adjustment Act was upheld as constitutional.
• D. The ruling did not involve agricultural policy.

Answer: (B)

The ruling tests how far the federal government can push its power to influence agriculture. It held that the Agricultural Adjustment Act used a processing tax to fund payments to farmers to reduce production, but this tax-and-subsidy scheme went beyond what Congress can do with its taxing and spending powers. It effectively regulated production, an area more appropriate to state governments under the Constitution. Because the federal mechanism was struck down, farm relief would fall to the states to handle, making farm relief a state matter. That’s why the best answer says the act was unconstitutional and farm relief became a state issue.