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Wilson's New Freedom Reforms:
Federal Farm Loan Act for kids
President Woodrow
Wilson, like his predecessors Theodore Roosevelt and William Taft,
was a firm supporter of the
Progressive Movement and
Progressive reforms. His New Freedom polices included the
passing of the federal law known as the Federal Farm Loan Act in
order to help struggling farmers and ranchers to compete against
larger farming businesses.
Federal Farm Loan Act for kids: Background History
Credit from commercial
banks was readily available for business and industry but credit was
scarce and loans were short term, and at high interest rates for
agriculture. Life was a continuous struggle for the small farmers
who had made various efforts to ease their situation by the
organization of the cooperative
Granger
Movement, the coalition of farming groups in the Farmers'
Alliance, and formation of the
Populist Party whose aims were
to increase the political power of farmers and to work
for government legislation in their interest. All of
these organizations had called for government regulation of currency
and banking reform to assist them with the insufficient money
supply. President Wilson was determined to give them the help that
small farmers had requested for so long.
Federal Farm Loan Act for kids: The Country Life Commission and
European Commissions
During the presidency
of Theodore Roosevelt, the Country Life Commission and congressional
committees had studied the problems facing rural farming families
and concluded that more farming cooperatives should be developed
together with a cooperative credit system for farmers. The
recommendations of the Country Life Commission were investigated by
both President William Taft and President Woodrow Wilson who sent
commissioners to Europe to study cooperative land-mortgage banks and
rural credit unions that promoted agriculture and rural development.
The commissioners recommended that the US established a system of
agricultural banks to provide both credit to meet the needs of
American farmers. The German Landschaft system was especially
mentioned in the recommendations. President Woodrow Wilson and
Congress responded with the 1916 Federal Farm Loan Act.
Purpose of the
Federal Farm Loan Act for kids: Why was the amendment to the law passed?
The purpose of the Federal Farm Loan Act
was designed implement the recommendations of the farming
commissions to help small farmers and ranchers by making it easier
for farmers to secure loans, obtain credit, restore free enterprise
and a competitive market for agriculture.
● The Federal Farm Loan Act
of 1916 established a Federal Land Bank (FLB) in each of 12
districts across the country as indicated on the map
● Under the provisions of
the Federal Farm Loan Act,
farmers could borrow up to 50% of the value of their land and
20% of the value of their improvements
● ● The minimum loan was
$100 and the maximum loan was $10,000
● ● Loans made though the
Act were paid off over 5 - 40 years
● Hundreds of National Farm
Loan Associations (NFLA's) were established to act as agents for
the Federal Land Banks
● Part of each farmer’s loan
bought stock in the association, making the individual farmers
owners of the National Farm Loan Associations
 1914 Map of
the 12 Federal Land Banks and Districts
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Map of
the
12 Federal Land Banks
The 1914 map of the 12 Federal Land Banks indicates
the Districts and location of the Federal Land Bank cities.
1:
Springfield
2: Baltimore
3: Columbus
4:
Louisville
5: New
Orleans
6: St. Louis
7: St. Paul
8: Omaha
9: Wichita
10: Houston
11: Berkeley
12: Spokane
Significance of the
Federal Farm Loan Act
The significance of the Federal Farm Loan Act
provided small farmers with competitive loans, enabling them to
compete with big business decreasing the likelihood of agricultural
monopolies. The Federal Land Banks were the first component of what
eventually came to be known as the Farm Credit System (FCS).
Federal Farm Loan Act
for kids
The info about the Federal Farm Loan Act provides interesting facts and
important information about this important law that
was passed during the presidency of the 28th President of the United States of America.
Federal Farm Loan Act - President Woodrow Wilson Video
The article on the Federal Farm Loan Act provides detailed facts and a summary of one of the important
progressive reforms and federal laws passed during his presidential term in office. The following
Woodrow Wilson video will
give you additional important facts and dates about the political events experienced by the 28th American President whose presidency spanned from March 4, 1913 to March 4, 1921.
Federal Farm Loan Act
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Interesting Facts about Federal Farm Loan Act for kids and schools
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Key events
and Federal Farm Loan Act for kids
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The Federal Farm Loan Act, a major
event in US history
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Woodrow Wilson Presidency from March 4, 1913 to March 4, 1921
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Fast, fun facts about the Federal Farm Loan Act
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Progressive laws and reforms of President Woodrow Wilson
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Woodrow Wilson Presidency and
Federal Farm Loan Act for schools,
homework, kids and children
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