What was the Farm Credit Act of 1933?

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To provide relief during the Great Depression, the Farm Credit Act of 1933 built on the 1916 act, completing the establishment of the federal Farm Credit System. The most concrete changes were two new types of institutions created. These expanded FCS lending authority to provide credit for any type of agricultural activities.

The FCS subsequently consisted of 12 each of Federal Land Banks (FLBs) that offered long-term agricultural real estate loans; Federal Intermediate Credit Banks (FICBs) for short- and intermediate-term credit, available to local credit associations and other lending institutions; banks for cooperatives (BCs) that provided credit to farmers’ cooperatives. In addition, there was a central bank for cooperatives.

In addition, by executive order by President Franklin D. Roosevelt in 1933 a new agency, the Farm Credit Administration (FCA) was created under which all the above operated.

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