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Agency History

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

One outcome was the establishment in 1935 of a Department of Agriculture company 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 entire farm communities to locations in which it was hoped farming could be performed more successfully. But resettlement was controversial and costly, and its results uncertain. Other functions soon ended up being more crucial, consisting of the Standard Rural Rehabilitation Loan Program, which supplied credit, farm and home management planning and technical supervision. 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, sometimes with the assistance of volunteer committees of local farmers, would deal with farmers and their debtors to try to arbitrate contracts and head off foreclosure. The idea was to reach an offer by which the bank might recuperate as much or more than it would through foreclosure by enabling the farmer to remain in company.

FSA also promoted co-ops and even offered treatment to poor rural families. Although the scope of its programs was limited, poor farm households who participated benefited greatly. One study approximates that households who participated in FSA programs saw their earnings increase by 69 percent in between 1937 and 1941! Annual per capita meat consumption increased from 85 pounds to 447 pounds in the same duration. Milk usage increased by over half.

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 added authorities to the new Farmers Home Administration that consisted of insuring loans made by other lending institutions. Later legislation established loaning for rural housing, rural business 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 support farm rates at a level at which farmers could make it through. The law developed state and county committees of farmers called "Triple A committees." These committees manage the first federal farm program offering price support loans to farmers to bring about crop decrease.

The old Triple A was developed on 2 major program divisions: the Division of Production and the Division of Processing and Marketing. These was accountable for the work of commodity areas consisting of 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 brand-new, complicated changes in preservation, crop assistance and marketing legislation. Programs such as commodity marketing controls, and the policy of the to assist farmers in obtaining 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 organized to meet the increased requirements of a country at war. This reorganization grouped production, supply and marketing authorities under a central firm which collaborated the flow of basic commodities.

Following The Second World War, the authority of the WFA was ended. In its location came the Production and Marketing Administration, which, aside from other duties, preserved a field services branch to help in program oversight.

The post-war duration of adjustment to peace-time production levels was nearly as difficult as gearing up for war. New top priorities needed to be developed, and at the very same time, over-production of certain products threatened drops in farm income levels. The increased needs of war-ravaged nations assisted take in surplus production, however surpluses remained a nagging problem for farmers and policymakers.

In 1953, a reorganization of USDA once again made changes in the powers and duties of its cost support and supply management agency. With the modifications came a brand-new name - Commodity Stabilization Service - and an increased focus on the conservation of farm income. 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 ranging approximately ten years. Community, county and state committees were officially 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 preservation missions. Field activities in connection with farm programs continue to be brought out through a comprehensive network of state and county field workplaces.

In 1994, a reorganization of USDA resulted in the Consolidated Farm Service Agency, renamed Farm Service Agency in November 1995. The new FSA encompassed the Agricultural Stabilization and Conservation Service, Federal Crop Insurance Corporation (FCIC) and the farm credit portion of the Farmers Home Administration. In May 1996 FCIC ended up being the Risk Management Agency.

Today, FSA's responsibilities are organized into 5 locations: Farm Programs, Farm Loans, Commodity Operations, Management and State Operations. The agency continues to supply America's farmers with a strong safeguard through the administration of farm commodity programs. FSA likewise executes ad hoc catastrophe programs. FSA's enduring custom of saving the country's natural deposits continues through the Conservation Reserve Program. The company offers credit to agricultural manufacturers who are not able to get personal, industrial credit. FSA places special focus on offering loans to starting, minority and women farmers and ranchers. Its Commodity Operations department purchases and delivers products for usage in humanitarian programs in your home and abroad. FSA programs assist feed America's school children and hungry people around the globe. Additionally, the agency supports the country's disabled residents by buying items made by these persons.