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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 joblessness 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 agency with familiar initials: FSA, which represented Farm Security Administration. Originally called the Resettlement Administration, and relabelled in 1937, its initial objective was to transfer whole farm neighborhoods to locations in which it was hoped farming might be performed more beneficially. But resettlement was questionable and pricey, and its results unclear. Other functions soon became more crucial, consisting of the Standard Rural Rehabilitation Loan Program, which provided credit, farm and home management planning and technical guidance. This was the leader of the farm loan programs of the Farmers Home Administration.

Another related program was Debt Adjustment and Tenure Improvement. FSA county managers, sometimes with the assistance of volunteer committees of regional farmers, would deal with farmers and their debtors to attempt to arbitrate contracts and head off foreclosure. The idea was to reach a deal by which the bank could recover as much or more than it would through foreclosure by allowing the farmer to stay in business.

FSA also promoted co-ops and even provided healthcare to bad rural households. Although the scope of its programs was restricted, bad farm households who participated benefited considerably. One research study estimates that families who took part in FSA programs saw their incomes increase by 69 percent in between 1937 and 1941! Annual per capita meat intake increased from 85 pounds to 447 pounds in the same period. Milk usage increased by over half.

In 1946 the Farmers Home Administration Act combined the Farm Security Administration with the Emergency Crop and Feed Loan Division of the Farm Credit Administration - a quasi-governmental agency that still exists today. This Act included authorities to the brand-new Farmers Home Administration that included guaranteeing loans made by other lenders. Later legislation established loaning for rural housing, rural organization enterprises, and rural water and waste disposal firms.

Meanwhile, the Agricultural Adjustment Act of 1933 had actually developed the Agricultural Adjustment Administration, or AAA. The "Triple A's" purpose was to support farm costs 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 oversaw the very first federal farm program offering price assistance loans to farmers to cause crop reduction.

The old Triple A was constructed on two significant program divisions: the Division of Production and the Division of Processing and Marketing. These were 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 new, complex changes in preservation, crop support and marketing legislation. Programs such as commodity marketing controls, and the policy of the Congress to assist farmers in getting parity prices and parity earnings, made the federal government the decision-maker for the nation's farmers.

After Pearl Harbor, the War Food Administration (WFA) was arranged to fulfill the increased needs of a country at war. This reorganization organized production, supply and marketing authorities under a central agency which coordinated the circulation of fundamental commodities.

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

The post-war duration of adjustment to peace-time production levels was practically as challenging as getting ready for war. New priorities had actually to be established, and at the same time, over-production of particular commodities threatened drops in farm earnings levels. The increased requirements of war-ravaged countries helped soak up surplus production, however surpluses stayed a nagging issue for farmers and policymakers.

In 1953, a reorganization of USDA once again made changes in the powers and responsibilities of its price support and supply management firm. 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 presented to bring production in line with need by taking land out of production for durations of time ranging as much as ten years. Community, county and state committees were officially recognized 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 showed the agency's stabilization and resource conservation missions. Field activities in connection with farm programs continue to be performed through a comprehensive network of state and county field workplaces.

In 1994, a reorganization of USDA led to the Consolidated Farm Service Agency, relabelled Farm Service Agency in November 1995. The new FSA included 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 obligations are arranged into five areas: Farm Programs, Farm Loans, Commodity Operations, Management and State Operations. The firm continues to offer America's farmers with a strong safeguard through the administration of farm product programs. FSA also carries out ad hoc disaster programs. FSA's long-standing custom of saving the country's natural resources continues through the Conservation Reserve Program. The company supplies credit to agricultural manufacturers who are not able to receive private, industrial credit. FSA places special focus on offering loans to beginning, 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 kids and starving people around the globe. Additionally, the agency supports the nation's disabled residents by purchasing products made by these individuals.