On January 6, 1936, the Supreme Court decided in United States v. Butler that the act was unconstitutional for levying this tax on the processors only to have it paid back to the farmers. Regulation of agriculture was deemed a state power.s such, the federal government could not force states to adopt the Agricultural Adjustment Act due to lack of jurisdiction. However, the Agricultural Adjustment Act of 1938 remedied these technical issues and the farm program continued.