Federal Farm Loan Act

From Academic Kids

The Federal Farm Loan Act of 1916 established 12 regional Farm Loan Banks to serve members of Farm Loan Associations. Farmers could borrow up to 50% of the value of their land and 20% of the value of their improvements.

The biggest benefit of the act was to allow small farmers to be more competitive with the larger businesses. Banks were to provide loans at a competitive rate to small businessmen.

The act was signed into law by President Woodrow Wilson.

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