The Federal Farm Board was established under the Agricultural Marketing Act of 1929 to stabilize agricultural prices and promote product sales. The board sought to achieve these goals by purchasing and storing surplus grain and cotton, thereby preventing market flooding and price declines. Additionally, it facilitated the creation of three nationwide cooperative marketing corporations: the Farmers’ National Grain Corporation, the National Wool Marketing Corporation, and the American Cotton Cooperative Association. These organizations aimed to enhance farmers’ bargaining power and improve product marketing.
Key Facts
- Creation and Purpose:
- The Federal Farm Board was established by the Agricultural Marketing Act of 1929.
- Its main purpose was to stabilize prices and promote the sale of agricultural products.
- Actions and Accomplishments:
- The Farm Board bought and held surplus grain and cotton in storage to help stabilize prices.
- It created three nationwide cooperative marketing corporations: the Farmers’ National Grain Corporation, the National Wool Marketing Corporation, and the American Cotton Cooperative Association.
- The Farm Board authorized loans to cooperative associations totaling approximately $60 million.
- Name Change and Dissolution:
- In 1933, the Farm Board was renamed the Farm Credit Administration through Executive Order 6084.
- The Farm Credit Administration took over the functions previously vested in the Federal Farm Board.
Actions and Accomplishments
During its tenure, the Federal Farm Board undertook several initiatives to fulfill its mandate. It authorized loans totaling approximately $60 million to cooperative associations, providing financial support for their operations and expansion. Furthermore, the board actively engaged in market intervention, purchasing and holding surplus grain and cotton to stabilize prices. This intervention aimed to prevent drastic price fluctuations that could harm farmers and destabilize the agricultural sector.
Name Change and Dissolution
In 1933, the Federal Farm Board underwent a name change and reorganization. Executive Order 6084, issued by President Franklin D. Roosevelt, renamed the board the Farm Credit Administration. This change reflected a broader shift in the government’s approach to agricultural policy, with a focus on providing credit and financial assistance to farmers. The Farm Credit Administration assumed the functions and responsibilities previously held by the Federal Farm Board, continuing its mission to support the agricultural sector.
Conclusion
The Federal Farm Board played a significant role in addressing the challenges faced by the agricultural sector during the Great Depression. Through its various initiatives, including price stabilization efforts, cooperative marketing corporation creation, and financial assistance to farmers, the board aimed to mitigate the economic hardships experienced by agricultural producers. Its contributions helped lay the foundation for subsequent agricultural policies and programs aimed at supporting farmers and ensuring the stability of the agricultural sector.
References
- https://en.wikipedia.org/wiki/Federal_Farm_Board
- https://cqpress.sagepub.com/cqresearcher/report/federal-farm-board-cqresrre1930012400
- http://apps.library.und.edu/archon/?p=collections/findingaid&id=902&q=
FAQs
What was the Federal Farm Board?
The Federal Farm Board was a government agency established in 1929 under the Agricultural Marketing Act in the United States. Its primary purpose was to stabilize agricultural prices and provide financial assistance to farmers during the Great Depression.
What were the goals of the Federal Farm Board?
The Federal Farm Board aimed to address the economic challenges faced by farmers, such as low prices, overproduction, and debt. Its goals included stabilizing farm commodity prices, promoting efficient agricultural marketing, and preventing foreclosures on farms.
How did the Federal Farm Board work?
The Federal Farm Board implemented various measures to achieve its objectives. It purchased surplus agricultural products to reduce oversupply, supported farmers’ cooperatives, provided loans to farmers, and aided in the development of export markets. It also conducted research and provided information to improve agricultural practices.
What impact did the Federal Farm Board have?
The Federal Farm Board’s efforts had mixed results. While it provided temporary relief to some farmers by increasing prices and reducing surpluses, its interventions were unable to fully address the underlying issues of overproduction and falling demand. The agency faced criticism for its inability to stabilize the agricultural sector during the Great Depression.
When was the Federal Farm Board disbanded?
The Federal Farm Board ceased to exist as an independent agency in 1935. Its functions and responsibilities were transferred to the newly established Farm Credit Administration and the Commodity Credit Corporation, which continued to provide financial support and implement agricultural policies.