Kerr-Smith Tobacco Control Act
Passed in 1934, the Kerr-Smith Tobacco Act addressed a loophole in the Agricultural Adjustment Act of 1933. The act levied a tax of 25 percent on all tobacco sales, while providing tax exemption permits to farmers who participated in the AAA. After passage of the Kerr-Smith Act, the price of tobacco rose markedly, briefly benefiting North Carolina farmers.