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Soil Bank Act
The Soil Bank Act of 1956 was part of the Agricultural Act of 1956. This act created the Soil Bank Program, which removed farmland from production in an effort to reduce large crop surpluses after World War II.〔“History of Agricultural Price-Support and Adjustment Programs 1933-84.” Agriculture Information Bulletin Number 485. United States Department of Agriculture, Economic Research Service. http://www.ers.usda.gov/Publications/aib485/aib485fm.pdf〕 Land deposited into the Soil Bank was then converted into conservation use.〔Rockoff, Hugh and Gary M. Walton. History of the American Economy. 11th ed. Mason, Ohio: South-Western Cengage Learning, 2010. Print. 500.〕 The idea for the Soil Bank was taken from legislation from the 1930s dust bowl and was similar to many depression-era solutions to lower crop prices.〔 Eventually, the Soil Bank act of 1956 was overturned by the Food and Agriculture Act of 1965.
== History ==
Following World War II, the government struggled with how to deal with the large farm surpluses that have been created by price supports.〔“Soil Bank Program (SB), 1956-1960” Warnell School of Forest Resources. http://warnell.forestry.uga.edu/service/library/crp01/node2.html〕 The first proposed solution to the problem was the Brannan Plan proposed by Secretary of Agriculture, C. F. Brannan, in 1949. The Brannan plan allowed for the treasury to pay farmers the difference between market prices and a modernized parity price.〔 The Brannan plan was praised because it would eliminate the need to store surpluses and is also beneficial to the American for the goodbye across the low prices. However, the Brannan plan was never instituted. Many labor consumer groups supported plan as well as the Americans for Democratic action, and the NFU.〔Dean, Virgil. “Why Not the Brannan Plan.” Agricultural History. Vol. 70, No. 2, Twentieth-Century Farm Policies (Spring, 1996). Pp. 268-282. JSTOR.〕 However, most labor economist opposed the plan “for its failure to make provisions for the adjustment for support levels in light of demand and supply and for setting these levels and excessive 100% parity.”〔Dean 1996, p. 276〕 The Soil Bank act fall of the Brannan plan and was a less radical solution to the problem of crop surpluses. The Soil Bank act was similar to many Depression-era solutions.〔
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