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Title: The U.S. Farm-Credit System and Economic Expansion in Agriculture: Evidence from U.S. Counties, 1930-1940

Citation Type: Miscellaneous

Publication Year: 2018

Abstract: The U.S. Congress initiated policy in 1916 to create what would eventually become a national Farm Credit System (FCS) that continues in operation to this day. The FCS was the first of several “government sponsored entities” (GSEs), as these institutions would later come to be known, created for the purpose of increasing access to credit in targeted economic sectors. Historical and political events leading to creation of each GSE are different in particulars, but all were organized to operate as quasi-private entities. The U.S. government provided seed capital, technical assistance, and an implicit backing to repay creditors to the system in the event of insolvency. However, each GSE was expected to operate in an economically sustainable manner, and to treat initial federal seed capital as debt to be repaid. Unlike other GSEs, the FCS was established under a structure that assigned autonomy, and considerable obligation for equity finance, to local cooperative organizations of farmers.

Url: https://www.semanticscholar.org/paper/The-U.S.-Farm-Credit-System-and-Economic-Expansion-Hueth-Hutchins/1fcb501257413fc3f416c521f87cff42bdb78609

User Submitted?: No

Authors: Hueth, Brent; Hutchins, Jared

Publisher: *Department of Agricultural and Applied Economics, University of Wisconsin Madison

Data Collections: IPUMS NHGIS

Topics: Other

Countries: United States

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