Federal Farm Loan Act Totally Explained

Everything about Federal Farm Loan Act totally explained

Federal Farm Loan Act of 1916 is a United States federal law that 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. What should also be noted is that this act furthered Wilson's policy against trusts and big business because by providing these small farmers and business men with competitive loans the small business men could now compete with big business, thus decreasing the risk of a massive trust and monopoly dominating any single market.
The act was signed into law by President Woodrow Wilson.

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