Minority Farmer Support
The History of the US Farm Service Agency (FSA)
The Farm Service Agency (FSA) has a rich history that traces its origins back to the depths of the Great Depression. In the 1930s, mounting unemployment and farm failures led to the election of President Franklin Delano Roosevelt, who promised Americans a "New Deal."
One of the results of this era was the establishment of a Department of Agriculture agency with the familiar initials FSA, which originally stood for Farm Security Administration.
In this article, we explore the history of the FSA and the broader involvement of the USDA.
As the FSA evolved, other vital roles emerged. These included the Standard Rural Rehabilitation Loan Program, which provided credit, farm and home management planning, and technical supervision. This program laid the groundwork for the farm loan programs of the Farmers Home Administration.
Another critical program was Debt Adjustment and Tenure Improvement. FSA county supervisors, sometimes with the help of local farmer committees, worked to arbitrate agreements and prevent foreclosures. The aim was to strike a deal that would allow farmers to remain in business while helping banks recover.
Pivoting to Support Farmers
Initially named the Resettlement Administration and later renamed the Farm Security Administration in 1937, its original mission was ambitious: to relocate entire farm communities to areas where farming could be more profitable.
However, resettlement proved to be controversial and expensive, with ambiguous results.
It’s important to remember that when the FSA was officially instituted, the United States still operated under numerous Jim Crow laws—rules and regulations that enforced race-based discrimination throughout the country.
This meant that many discriminatory practices at the time weren’t necessarily unlawful. It would take another 30 years before the Civil Rights movement would repeal Jim Crow laws and fairer treatment would finally begin for minority farmers.
The ‘New Deal’ for Farmers
The FSA also promoted cooperative initiatives and provided medical care to impoverished rural families. Though their programs had limitations, they had a profound impact.
Between 1937 and 1941:
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Families saw their incomes rise by a remarkable 69%
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Meat consumption per capita skyrocketed from 85 pounds to 447 pounds
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Milk consumption increased by more than 50%.
Clearly the FSA’s role in the success of mid-20th century farming in the US was significant, however, the organization would undergo numerous changes before it matured into the state it is in today.
Empowering Rural Communities
After World War II, the Farmers Home Administration Act of 1946 consolidated the Farm Security Administration with the Emergency Crop and Feed Loan Division of the Farm Credit Administration. This laid the foundation for lending for rural housing, rural business enterprises, and rural water and waste disposal agencies.
Post-War Reorganization
The Agricultural Adjustment Act of 1933 established the Agricultural Adjustment Administration (AAA) to stabilize farm prices at a sustainable level. This law introduced state and county committees of farmers known as "Triple A committees" to oversee federal farm programs.
The passage of the Agricultural Adjustment Act of 1938 brought about significant changes in conservation, crop support, and marketing legislation. These programs, including commodity marketing controls, aimed to assist farmers in obtaining parity prices and income, making the federal government a key player in the farming sector.
Changes and Challenges in a New Era
The War Food Administration (WFA) was established following the attack on Pearl Harbor to manage increased wartime needs. After the war, the Production and Marketing Administration took over these responsibilities, maintaining a field services branch for program oversight.
Adjusting to peace-time production levels post-World War II was challenging. Surpluses of certain commodities threatened farm income, and new priorities needed to be established. The federal government played a pivotal role in managing these complexities.
War-Time and Beyond
The War Food Administration (WFA) was established following the attack on Pearl Harbor to manage increased wartime needs. After the war, the Production and Marketing Administration took over these responsibilities, maintaining a field services branch for program oversight.
Adjusting to peace-time production levels post-World War II was challenging. Surpluses of certain commodities threatened farm income, and new priorities needed to be established. The federal government played a pivotal role in managing these complexities.
The Modern-Day FSA
While the FSA is technically a part of the United States Department of Agriculture (USDA), the USDA itself is a federal executive department responsible for developing and executing policies related to farming, agriculture, and food.
Within the USDA, various agencies and offices specialize in different aspects of agriculture and rural development, and the FSA is one of these specialized agencies.
The FSA operates as a key component of the USDA, working collaboratively with other USDA entities to fulfill its mission of supporting and promoting the interests of American agriculture and rural areas.
Role of the USDA Today
Recently, the USDA has admitted to discriminating against minority farmers seeking loans to start or expand agricultural operations.
In an effort to compensate the farmers affected by this discrimination, the USDA has set aside a $2.2 billion fund that will be used to provide cash payouts to minority farmers who qualify for compensation.
Farmers who experienced discrimination when obtaining a USDA farm loan are urged to visit this site to sign up for a compensation claim.
Those farmers who experienced any form of discrimination when applying for a USDA farm loan are eligible to receive a portion of the $2.2 Billion compensation fund. Some farmers will receive up to $500,000 in cash payouts the USDA is planning to send to qualified claimants by December, 2023.
The deadline for signing up for a claim is October 31, 2023.
To sign up for a claim, visit www.farmercompensationclaims.org.
