What is a federal ground bank?
Federal Land Bank (FLB) is a government credit agency that processes loans and financing for the development or purchase of rural land. In the United States, a system of federal land was created in 1916 to help farmers to buy, develop and improve new land. The Land Bank federal system no longer exists in the US, its function has been overturned to a much more complex farmer's credit bank (FCB).
When a large enterprise increased in the post -Industrial Revolution of the United States in the post -Industrial Revolution, the government was looking for a way to maintain small farms and family farms in business. As soon as the characteristic feature of American hardy and dedication, small farms fell rapidly on the sidelines in the introduction of huge farms operated by companies and an expensive but vital new agricultural machine. In 1916, US President Woodrow Wilson signed a federal farm law, founded by a federal land bank in twelve regional offices. RegionalBanks that started government funds have promised good rates for Smvšechny businesses and a high loan limit.
Federal land banks were considered essential to stop the spread of monopolies. With the rise of robbers and magnates, working farmers were seriously threatened by failure. Without market competition created by a wide group of farms suppliers, large companies could gain full control over prices and offer, leading to undesirable economic conditions. The concept of the Federal Land Bank was not new; Some historians claim that it has been strongly influenced by similar programs throughout Europe, especially an agricultural credit system that existed in Germany for centuries.
Land Bank's federal program has proven to be an immediate success; In 1917, more than $ 200 million (USD) were borrowed from regional offices. Yet a great depression of 30.SLA as financial crisis swept the country. In 1933, US President Franklin Roosevelt submitted an offer to rescue the industry by signing laws that allow short -term loans and provided to delinquent farmers for more time to repay mortgages. Roosevelt's Gamble worked, leading to a significant increase in loans throughout the agricultural industry.
By 2005, the debt to the government was completely repaid, so the banks were fully owned by investors and farmers. Although the organization is still supported by the government, it is managed by private citizens. Since the turn of the 21st century, all 12 original regional offices of the Land Bank federal system have joined a larger farm credit bank and there were no federal land banks in the US.