Services offered by the former Farmers Home Administration are now provided through the U.S. Department of Agriculture's Farm Service Agency. The Farm Service Agency provides loans to farmers and ranchers who are unable to qualify for commercial credit, small business loans to help create jobs in rural communities, and housing and home-improvement loans for low- to moderate-income rural residents.Continue Reading
The Farmers Home Administration evolved from the Farm Security Administration and the Resettlement Administration and was part of the federal government's effort to help American farmers harmed by the Great Depression and the Dust Bowl, states Encyclopedia.com. The Farmers Home Administration's primary mission was to help individuals purchase their own farms, whereas the Farm Security Administration had focused on cooperative projects designed to help tenant farmers. The Farmers Home Administration sought to boost farm ownership by streamlining the loan process and by providing government-insured loans to farmers who were unable to get a line of credit from a commercial bank.
In addition to its main role of helping new farmers become established, the Farmers Home Administration also provided financial assistance to low-income farmers and even helped large agricultural operations that had been affected by natural disasters, according to Encyclopedia.com. The Farmers Home Administration, Agricultural Stabilization and Conservation Service and the Federal Crop Insurance Corporation were incorporated into the Farm Service Agency in 1994.Learn more about Credit & Lending