Federal Farm Board

(noun)

The Federal Farm Board was created in 1929, before the stock market crash on October 29, but its powers were later enlarged to meet the economic crisis farmers faced during the Great Depression.

Related Terms

Examples of Federal Farm Board in the following topics:

  • Farm Policy of the 20th Century

    • Farmers again called for help from the federal government.
    • Then, the farm sector was hit by unfavorable weather conditions that highlighted shortsighted farming practices.
    • Widespread government intervention in the farm economy began in 1929, when President Herbert Hoover (1929-1933) created the federal Farm Board.
    • Although the board could not meet the growing challenges posed by the Depression, its establishment represented the first national commitment to provide greater economic stability for farmers and set a precedent for government regulation of farm markets.
    • In 1973, U.S. farmers began receiving assistance in the form of federal "deficiency" payments, which were designed to work like the parity price system.

  • Changes in Agricultural Production

    • Farmers had a powerful voice in Congress and demanded federal subsidies, most notably the McNary-Haugen Farm Relief Act.
    • According to the bill, a federal agency would be created to support and protect domestic farm prices by attempting to maintain price levels that existed before the World War I.
    • By purchasing surpluses and selling them overseas, the federal government would take losses that would be paid for through fees against farm producers.
    • Jardine to modernize farming.
    • Hoover advocated the creation of a Federal Farm Board, which was dedicated to the restriction of crop production within domestic demand, behind a tariff wall, and maintained that the farmers’ ailments were due to defective distribution.

  • Volcker Disinflation

    • During his time as chairman, Paul Volcker led the Federal Reserve board and helped to end the stagflation crisis of the 1970s.
    • However, due to the work of Volcker and the rest of the board, the inflation rate dropped to 3.2% by 1983.
    • Despite his level of success in certain areas, Volcker's Federal Reserve board drew some of the strongest political attacks and protests in the history of the Federal Reserve.
    • The protests were a result of the negative effects that the high interest rates had on the construction and farming industries.
    • Evaluate the benefits and consequences of Paul Volcker's actions as chairman of the Federal Reserve Board of Governors

  • Wilsonian Progressivism

    • Included among these were the Federal Reserve Act, Federal Trade Commission Act, the Clayton Antitrust Act, and the Federal Farm Loan Act.
    • Congress rejected proposals for a tariff board to scientifically fix rates, but did set up a study commission to monitor them.
    • It was also aided through the passage of the Federal Farm Loan Act, (1916), which set up Farm Loan Banks to support farmers.
    • The compromise, based on the Aldrich Plan but sponsored by Democratic congressmen Carter Glass and Robert Owen, allowed the private banks to control twelve regional Federal Reserve Banks and placed controlling interest in a central board to be appointed by the president with Senate approval.
    • Despite this, Wilson did much to extend the power of the federal government in social and economic affairs, and paved the way for future federal reform programs such as the New Deal.

  • Structure of the Federal Reserve

    • The presidentially appointed Board of Governors (or Federal Reserve Board), an independent federal government agency located in Washington, D.C.
    • As of February 2014, the Chair of the Board of Governors is Janet Yellen, who succeeded Ben Bernanke.
    • The Federal Open Market Committee (FOMC), composed of the seven members of the Federal Reserve Board and five of the 12 Federal Reserve Bank presidents, which oversees open market operations, the principal tool of U.S. monetary policy.
    • Twelve regional Federal Reserve Banks located in major cities throughout the nation, which divide the nation into twelve Federal Reserve districts.
    • Treasury, and each has its own nine-member board of directors.

  • Chapter Questions

    • Why did Congress and the President create the Federal Reserve System with several independent bank branches?
    • Please describe the structure of the Federal Reserve System?
    • Identify the functions of the Board of Governors, and who appoints members to this board?
    • 5.Which factors help the Fed be independent of the U.S. federal government?
    • Identify the functions of the Federal Open Market Committee, and who appoints members to this board?

  • The Federal Reserve System's Structure

    • Unique feature of a Federal Reserve Bank is each bank is a federally chartered corporation.
    • Board of Governors is the entity that controls the Federal Reserve System.
    • The Comptroller of the Currency and Secretary of the Treasury cannot be members of the board because the Federal Reserve must remain independent of the U.S. federal government.
    • Board of Governors is independent of the U.S. federal government in three ways.
    • Although the Board of Governors determines monetary policy, the Federal Open Market Committee puts the policy into action.

  • Competing Solutions

    • Furthermore, lowering taxes, public work projects, and loosening credit policies by the Federal Reserve aimed to energize the economy.
    • Second, the Revenue Act of 1932, which was the largest peacetime tax increase in history, increased taxes across the board.
    • Among many initiatives, AAA provided farm subsidies in exchange for curbed agricultural production (farmers would not cultivate all of the land on their farms) and manipulated farm product prices by buying and temporary withholding products from the market .
    • Federal Emergency Relief Administration (FERA; initiated by Hoover) created government, mostly unskilled jobs.
    • The National Labor Relations Act (1933), which established the National Labor Relations Board (1935).

  • Government Involvement

    • In the early years of American history, most political leaders were reluctant to involve the federal government too heavily in the private sector, except in the area of transportation.
    • This attitude started to change during the latter part of the 19th century, when small business, farm, and labor movements began asking the government to intercede on their behalf.
    • Many of today's U.S. regulatory agencies were created during these years, including the Interstate Commerce Commission, the Food and Drug Administration, and the Federal Trade Commission.
    • New Deal legislation extended federal authority in banking, agriculture, and public welfare.
    • The War Production Board coordinated the nation's productive capabilities so that military priorities would be met.

  • Standard-Setting Groups: SEC, AICPA, and FASB

    • In 1959, the Accounting Principles Board (APB) was formed to meet the demand for more structured accounting standards.
    • The APB issued pronouncements on accounting principles until 1973, when it was replaced by the Financial Accounting Standards Board (FASB).
    • Securities and Exchange Commission (SEC) is a federal agency which holds primary responsibility for enforcing the federal securities laws and regulating the securities industry, the nation's stock and options exchanges, and other electronic securities markets in the United States.
    • It sets ethical standards for the profession and U.S. auditing standards for audits of private companies, non-profit organizations, federal, state and local governments.
    • The offices of the American Institute of Certified Public Accountants (AICPA) at Palladian Office Park (220 Leigh Farm Road) in Durham, North Carolina.