the agricultural adjustment act (aaa) was a united states federal law of the new deal era. it was designed to raise agricultural prices by having fewer surpluses. the government bought livestock to kill, and they paid farmers subsidies not to plant on part of their land. the money for these subsidies was generated through a tax on companies which processed farm products. the act created a new agency, the agricultural adjustment administration, an agency of the u.s. department of agriculture, to oversee the distribution of the subsidies.