The law permitted the federal government to make low-cost loans to farmers for the purpose of forming rural electrical cooperatives . Rural electrification was particularly significant in Georgia, where in 1930 nearly 70 percent of the population lived in rural areas.
Why was the Rural Electrification Administration Important?
This law allowed the federal government to make low-cost loans to farmers who had banded together to create non-profit cooperatives for the purpose of bringing electricity to rural America . ... Therefore, in 1936 Congress passed the Rural Electrification Act to give rural Americans a ‘fair chance. ‘
What was the impact of the Rural Electrification Administration?
The REA loans contributed significantly to increases in crop output and crop productivity and helped stave off declines in overall farm output, productivity, and land values, but had much smaller effects on nonagricultural parts of the economy.
What was the primary goal of the Rural Electrification Administration in Georgia?
President Roosevelt signed an order on May 11, 1935 creating the Rural Electrification Administration. The primary function of the REA was to provide loans to power companies that would use the new funds to extend lines into rural America . Unfortunately, only a few companies applied for these funds.
How did the Rural Electrification Act of 1936 help stimulate Georgia’s economy?
Which TWO statements explain how the Rural Electrification Act of 1936 helped stimulate Georgia’s economy? It encouraged businesses to move out of city centers and to develop new business ventures in rural areas . ... During both World Wars, significant military base construction occurred across the state of Georgia.
Who benefited from the Rural Electrification Act?
Advantages of the Rural Electrification Act
Gains in productivity meant that farmers made more money and were able to pay back the REA loans. The default rate on these loans was less than 1%. 4 In other words, the government managed to provide electricity to its rural population essentially for free.
Who did the Rural Electrification Administration provided electricity to?
The REA was created to bring electricity to farms . In 1936, nearly 90 percent of farms lacked electric power because the costs to get electricity to rural areas were prohibitive.
What is the Rural Electrification Act of 1936 and what did it accomplish?
The Rural Electrification Act of 1936, enacted on May 20, 1936, provided federal loans for the installation of electrical distribution systems to serve isolated rural areas of the United States . The funding was channeled through cooperative electric power companies, hundreds of which still exist today.
Was the Rural Electrification Act successful?
Rural electrification became one of the most successful government programs ever enacted . Within 2 years it helped bring electricity to some 1.5 million farms through 350 rural cooperatives in 45 of the 48 states. By 1939 the cost of a mile of rural line had dropped from $2,000 to $600.
What rea means?
| Acronym Definition | REA Research, Evaluation and Accountability (various locations) | REA Research Executive Agency (EU) | REA Rural Electrification Administration | REA Railway Express Agency |
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What impact did the Rural Electrification Administration have for Georgia’s economy?
It provided low-cost loans to groups of people (“cooperatives”) . The people paid back the loans in their electric bills. A dramatic change accompanied this; electricity saved labor, increased production, and improved the quality of life.
What was Rea during the Great Depression?
The REA, which was created by the Rural Electrification Act on May 20, 1936, was designed to spark electricity in rural areas . The federal government provided low-cost loans to groups of farmers who created cooperatives that installed and oversaw power lines.
Who did the REA lend money to?
69). The R.E.A. was essentially a government-financing agency providing subsidized loans to private companies, public agencies, or cooperatives for the construction of electrical supply infrastructure in rural regions.
Does the REA still exist today?
The REA was terminated on October 13, 1994, with the passage of the Federal Crop Insurance Reform and Department of Agriculture Reorganization Act of 1994. Its functions were absorbed into the newly-created Rural Utilities Service [9].
What was an important result of the Rural Electrification Act of 1936 quizlet?
What was an important result of the Rural Electrification Act of 1936? Most of the rural areas of the southeast received electricity . FDR’s programs can get the U.S. out of the Great Depression.
Was Rea relief recovery or reform?
The “Rural Electrification Act” (REA) was a part of his “New Deal” program, designed to promote “Relief, Recovery, and Reform ” in the United States. ... The REA made brought electricity to rural America. Roosevelt began trying to get the bill passed on May 11, 1935.
