Question

The USDA provides direct loans to eligible farmers, who are primarily beginning farmers or socially disadvantaged farmers who cannot obtain credit from traditional leaders. These loans are available at subsidized rates from the _________.

a. Federal Trade Commission (FTC)
b. Commodity Credit Corporation (CCC)
c. Rural Electrification Administration (REA)
d. Farm Service Agency (FSA)

Answer 1

The USDA offers subsidized loans to eligible farmers through the Farm Service Agency (FSA). These efforts are part of federal support to stabilize the agriculture sector, a legacy of the Agricultural Adjustment Act and its successors.

Step-by-step explanation:

The USDA provides direct loans to eligible farmers, primarily beginning and socially disadvantaged farmers, who cannot secure credit through traditional means. These loans are available at subsidized rates from the Farm Service Agency (FSA). Historically, the United States has supported its agricultural sector through various federal programs, which included not just loans but also price supports and crop insurance.

The Agricultural Adjustment Act (AAA), passed on May 12, 1933, was one such effort aimed at stabilizing agricultural commodity prices by reducing production and offering direct payments to farmers. In response to the Supreme Court nullifying the AAA, the Soil Conservation and Domestic Allotment Act of 1936 was established, followed by a second AAA, eventually leading to the creation of the FSA.