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Agency History

The Farm Service Agency traces its starts to 1933, in the depths of the Great Depression. A wave of discontent caused by mounting unemployment and farm failures had helped elect President Franklin Delano Roosevelt, who guaranteed Americans a "New Deal."

One outcome was the facility in 1935 of a Department of Agriculture agency with familiar initials: FSA, which stood for Farm Security Administration. Originally called the Resettlement Administration, and renamed in 1937, its original mission was to relocate whole farm communities to locations in which it was hoped farming might be performed more profitably. But resettlement was controversial and costly, and its results ambiguous. Other roles quickly became more vital, consisting of the Standard Rural Rehabilitation Loan Program, which supplied credit, farm and home management preparation and technical guidance. This was the forerunner of the farm loan programs of the Farmers Home Administration.

Another associated program was Debt Adjustment and Tenure Improvement. FSA county managers, often with the aid of volunteer committees of local farmers, would deal with farmers and their debtors to attempt to arbitrate contracts and head off foreclosure. The idea was to reach an offer by which the bank could recover as much or more than it would through foreclosure by permitting the farmer to remain in service.

FSA also promoted co-ops and even provided medical care to bad rural families. Although the scope of its programs was limited, bad farm families who took part benefited considerably. One study estimates that households who took part in FSA programs saw their earnings increase by 69 percent between 1937 and 1941! Annual per capita meat usage increased from 85 pounds to 447 pounds in the exact same duration. Milk usage increased by majority.

In 1946 the Farmers Home Administration Act consolidated the Farm Security Administration with the Emergency Crop and Feed Loan Division of the Farm Credit Administration - a quasi-governmental company that still exists today. This Act included authorities to the brand-new Farmers Home Administration that included insuring loans made by other loan providers. Later legislation recognized lending for rural housing, rural company enterprises, and rural water and waste disposal companies.

Meanwhile, the Agricultural Adjustment Act of 1933 had actually established the Agricultural Adjustment Administration, or AAA. The "Triple A's" purpose was to stabilize farm costs at a level at which farmers might make it through. The law established state and county committees of farmers called "Triple A committees." These committees oversaw the first federal farm program offering rate support loans to farmers to bring about crop decrease.

The old Triple A was developed on two significant program divisions: the Division of Production and the Division of Processing and Marketing. These were accountable for the work of product areas including dairy, rice, tobacco, sugar, wheat, cotton, corn and hogs.

With the passage of the Agricultural Adjustment Act of 1938 and a basic reorganization of the Department of Agriculture that October came new, complicated changes in preservation, crop support and marketing legislation. Programs such as commodity marketing controls, and the policy of the Congress to assist farmers in acquiring parity prices and parity income, made the federal government the decision-maker for the country's farmers.

After Pearl Harbor, the War Food Administration (WFA) was arranged to meet the increased requirements of a nation at war. This reorganization grouped production, supply and marketing authorities under a central agency which coordinated the circulation of standard commodities.

Following World War II, the authority of the WFA was terminated. In its place came the Production and Marketing Administration, which, aside from other obligations, preserved a field services branch to help in program oversight.

The post-war period of adjustment to peace-time production levels was nearly as challenging as preparing for war. New priorities had to be developed, and at the exact same time, over-production of certain commodities threatened drops in farm income levels. The increased needs of war-ravaged nations assisted soak up surplus production, however surpluses remained a bothersome issue for farmers and policymakers.

In 1953, a reorganization of USDA again made changes in the powers and responsibilities of its rate assistance and supply management company. With the modifications came a new name - Commodity Stabilization Service - and an increased focus on the preservation of farm earnings. Conserving programs such as the Soil Bank were introduced to bring production in line with need by taking land out of production for time periods varying approximately ten years. Community, county and state committees were formally identified for the very first time as Agricultural Stabilization and Conservation committees.

The Commodity Stabilization Service became the Agricultural Stabilization and Conservation Service (ASCS) in 1961, and the new name reflected the firm's stabilization and resource conservation objectives. Field activities in connection with farm programs continue to be brought out through an extensive network of state and county field workplaces.

In 1994, a reorganization of USDA led to the Consolidated Farm Service Agency, renamed Farm Service Agency in November 1995. The brand-new FSA encompassed the Agricultural Stabilization and Conservation Service, Federal Crop Insurance Corporation (FCIC) and the farm credit part of the Farmers Home Administration. In May 1996 FCIC became the Risk Management Agency.

Today, FSA's responsibilities are organized into five areas: Farm Programs, Farm Loans, Commodity Operations, Management and State Operations. The firm continues to supply America's farmers with a strong safety internet through the administration of farm commodity programs. FSA likewise implements ad hoc disaster programs. FSA's long-standing custom of saving the nation's natural deposits continues through the Conservation Reserve Program. The agency provides credit to agricultural manufacturers who are unable to receive personal, industrial credit. FSA places unique emphasis on providing loans to starting, minority and ladies farmers and ranchers. Its Commodity Operations department purchases and provides products for use in humanitarian programs in the house and abroad. FSA programs help feed America's school children and starving people around the world. Additionally, the agency supports the country's handicapped people by purchasing items made by these persons.