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Distinguishing Administrative Aspects of the Farm Credit Administration

Published online by Cambridge University Press:  02 September 2013

Herbert Emmerich
Herbert Emmerich
Affiliation:
Farm Credit Administration, Washington, D. C.
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Extract

The federal farm loan system is a government established, aided, and supervised organization, designed to render an economic service in the field of agricultural lending. Its main purpose is to create and keep open a continuous channel between the farmer and sources of surplus funds in large centers. It was founded nineteen years ago, and has been developed and amplified in order to pool the credit needs of individual farmers with good credit and good farms, and provide for them more nearly the same terms and rates extended to large industrial borrowers. These general rules may be said to govern the operations of its credit policy: (1) without attempting to make all agricultural loans, Farm Credit Administration endeavors to supplement the activities of other agencies, and to set a standard of costs of credit and the terms upon which such credit is extended to agriculture; (2) interest rates charged to farmers should bear a relation to the cost of money to the Farm Credit Administration in the investment market at the time the loan is made; (3) loans should be made with reference to the needs of agriculture and the biological cycle of production; and (4) loans should be made which are within the capacity of the farmer to pay, so that he may repay them out of farm income, minimize his indebtedness, and keep credit channels open for future needs.

Type
Public Administration
Information
American Political Science Review , Volume 30 , Issue 6 , December 1936 , pp. 1117 - 1133
Copyright
Copyright © American Political Science Association 1936

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References

1 Executive Order No. 6084.

2 For further details regarding the functions of these divisions, refer to the Third Annual Report of the Farm Credit Administration.

3 Federal Farm Board, Press Service, No. 3–70, May 4, 1933, pp. 8 and 9Google Scholar.

4 For more complete discussion on this point, see Hearing before a Subcommittee of the Committee on Banking and Currency, United States Senate, 74th Congress, 2nd Session, on S. 4003, “A Bill Providing for the Reorganization of the Farm Credit Administration,” March 25, 1936, especially the statement of Governor Myers and accompanying exhibit, pp. 82ff. and 110ff.

5 For a more complete account of the early history, see First Annual Report of the Federal Farm Loan Board, 1918, 65th Congress, 2d Session, H. Doc. 714Google Scholar; Holt, W. Stull, The Federal Farm Loan Bureau (Baltimore, 1924)Google Scholar.

6 Hearing before the Committee on Agriculture, House of Representatives, 73d Cong., 1st Sess., on H.R. 5790, “Farm Credit Act of 1933,” p. 12.

7 12 U. S. Code, Sec. 683.

8 12 U. S. Code, Sec. 676.

9 Sec. 781.

10 Sec. 791.

11 Sec. 991.

12 From an address by W. I. Myers, governor of the Farm Credit Administration, at the annual meeting of the Land Grant College Assoc., Washington, D. C., 1935.

13 “How Can the State Do Business?”, Current History, May, 1935, p. 132Google Scholar.

14 12 U.S. Code, sec. 931.

15 Press Release, Farm Credit Administration, Washington, D. C., October 7, 1935.

16 12 U. S. Code, Secs. 711–761, 951.

17 Mr. Charles E. Mills, research assistant, aided materially in the preparation of this paper.

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