Wednesday, December 6, 2017
Farm Credit Act of 1933
What was the Farm Credit Act of 1933? The FCA for short was an act that was created in 1933 and was passed on by the US Government as an Act. When the act was first introduced its main purpose was to provide short, intermediate, and long term loans that were focused on the agricultural side of business. The reason for the creation of the FCA was to help out agricultural business after what had happened during the Great Depression. During the Great Depression agricultural business was lowering down since people did not have the money to buy the recources and products the farmers and crop owners were trying to sell to them. Since people didn't have the money to pay for the crops or products the farmers were not able to keep producing the products during the depression. After the Depression ended the economy increased and the need for farm products increased so they decided to pass the FCA in order to have the products necessary for the peoples needs. The FCA was seen as a positive act passed by the Government since it allowed the production of goods to increase.
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I believe one group that the Depression hit the hardest was the farmers. It was very difficult for them because the way that farmers make their money is by other people buying their products. Since consumers didn't have the money to buy food, there was no money going back into the farm industry which left farmers with few decisions. Sadly for the farmers, this decision was oftentimes selling their farm.
ReplyDeleteThe farmers were the ones to get the most support in the Depression but how do you think they felt? Many of them could not work and some could have had a generation of farmers in their family and having to lose everything they had must have been hard on them. Yet it was good that the government passed this act because it would have been a lot harder on them on their own to have to get through this period of time.
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