Authorized to help farmers stabilize prices by temporarily holding surplus grain and cotton in storage .
What was the purpose of the Federal Farm Board?
The board would help farmers stabilize prices by buying and holding surplus grain and cotton in storage . The Farm Board was part of Herbert Hoover’s response to the downward spiral of crop prices in the years leading up to the Great Depression.
What was the Federal Farm Board quizlet?
Federal Farm Board. created it in 1929 to lend money to farm cooperatives to help them market their products . It was also supposed to keep crop prices steady, but failed to do so.
How did the farm board try to aid farmers?
What did this new board do to help farmers? The Farm Board established national cooperatives , such as the National Livestock Marketing Association and the American Cotton Cooperative Association, and then loaned these organizations money to help keep prices stable.
Who established the Federal Farm Board?
The Agricultural Marketing Act of 1929, under the administration of Herbert Hoover , established the Federal Farm Board from the Federal Farm Loan Board established by the Federal Farm Loan Act of 1916 with a revolving fund of half a billion dollars.
What was the biggest problem farmers faced?
Indeed, at the close of the century of greatest agricultural expansion, the dilemma of the farmer had become a major problem. Several basic factors were involved- soil exhaustion , the vagaries of nature, overproduction of staple crops, decline in self-sufficiency, and lack of adequate legislative protection and aid.
What did the Federal Farm Loan Act do?
360, enacted July 17, 1916) was a United States federal law aimed at increasing credit to rural family farmers . It did so by creating a federal farm loan board, twelve regional farm loan banks and tens of farm loan associations. The act was signed into law by President of the United States Woodrow Wilson.
How did President Hoover’s economic beliefs influence the Great Depression quizlet?
Hoover thought Public works projects , the thinking went, would create new jobs. Hoover also relied on charities to help the needy and end the crisis. Also he used Laissez Faire or “hands off” government; business will take care of themselves and the government will not interfere. You just studied 19 terms!
Why did banks fail by the hundreds even during good times in the 1920s?
Why did banks fail by the hundreds even during good times in the 1920s? Fell by more than 40 percent . Had suffered falling agricultural prices for about a decade. Unemployment.
Which of the following is credited as a cause of the Great Depression?
It began after the stock market crash of October 1929 , which sent Wall Street into a panic and wiped out millions of investors. Over the next several years, consumer spending and investment dropped, causing steep declines in industrial output and employment as failing companies laid off workers.
What did the federal government teach farmers?
Even before the New Deal, the federal government supported farmers directly. President Hoover’s administration tried to support farmers by providing them better credit and then by buying farm produce to stabilize the prices . But that just caused farmers to grow more, which in turn lowered prices even more.
Why was the farm industry doing bad in the 1920s?
While most Americans enjoyed relative prosperity for most of the 1920s, the Great Depression for the American farmer really began after World War I. Much of the Roaring ’20s was a continual cycle of debt for the American farmer , stemming from falling farm prices and the need to purchase expensive machinery.
Why did farmers destroy their crops during the Great Depression?
Government intervention in the early 1930s led to “emergency livestock reductions,” which saw hundreds of thousands of pigs and cattle killed, and crops destroyed as Steinbeck described, on the idea that less supply would lead to higher prices .
When was the Federal Farm Board introduced?
In response to the depression gripping rural America, the Agricultural Marketing Act of 1929 , which created the Federal Farm Board from the Federal Farm Loan Board, with a stabilization fund of $500 million, was the subject of a Senate Committee hearing January 31, 1930.
How did the Great Depression impact rural America?
In rural areas, many banks failed — went bankrupt and closed — because they were unable to collect anything of value on loans they had made to farmers . ... For farmers and farm communities, the Great Depression began in the 1920s. Farm families survived the Depression through cooperation.
What was the AAA and what did it do?
The Agricultural Adjustment Administration (AAA) brought relief to farmers by paying them to curtail production , reducing surpluses, and raising prices for agricultural products.
