Thanks to Democrats and the New Deal, this challenge has long since been successfully met. It is a model that we should be referring to in other crises we face now. It is a stellar example of successful socialism.
"The nationwide depression that deepened in 1929, and continued into the 1930s, accelerated the problems of rural America. Upon assuming office, President Roosevelt acted quickly to establish a means to revive financially the farm economy. By Executive Order, the President created the Farm Credit Administration, thereby concentrating the supervision and authority over the floundering rural assistance programs."
"Thereafter, Congress enacted the Farm Credit Act of 1933, establishing a system of production credit corporations and associations, with financing from the Federal intermediate credit banks, to provide operating loans to farmers on a short-term credit basis. That legislation also brought into the Farm Credit Administration the banks for cooperatives. In the same year, the Emergency Farm Mortgage Act provided for refunding and revising the operations of the Federal land bank associations to meet the problems of farm foreclosures and debt defaults."
History of the Farm Credit System -
http://www.econ.iastate.edu/rabobankbuyout/history.pdfHistorical Highlights of FCA and the FCS -
1929 - The Great Depression begins. Many farmers, unable to pay their expenses and loan payments, abandon their farms. The great number of nonperforming loans leads to dire financial instability for the land banks and farm loan associations.
1932 President-elect Franklin D. Roosevelt immediately sets to work to relieve the hardship of the Nation’s farmers. He orders his agriculture advisor, Henry Morgenthau Jr., to see that an Executive order is drawn up that consolidates all Federal agencies that extend farm credit. He also orders two bills to be drafted: one to offer emergency financing to farmers in danger of losing their farms and one to establish a comprehensive, reliable system of farm credit. Morgenthau charges his technical advisor, William I. Myers of Cornell University, with these tasks.
1933 - Myers, along with Rep. Marvin Jones, chairman of the House Committee on Agriculture, writes the Executive order consolidating all agricultural credit agencies and names the new agency the Farm Credit Administration. The two men also write the Emergency Farm Mortgage Act to provide emergency financing to save farms whose owners are delinquent in their loans and the Farm Credit Act to establish the cooperative Farm Credit System. Some 40,000 farmers apply for loan restructuring in the first few months to save their farms.
Morgenthau is named the first Governor of the Farm Credit Administration when Roosevelt takes office and the Farm Credit Act takes effect; Myers is named Deputy Governor. When Morgenthau becomes Acting and Under Secretary of the Treasury later that year, Myers becomes Governor.
Myers, considered the principal architect of the Farm Credit System, champions the ideal that FCA and the System should remain independent and free of political coercion. He exhorts farmers and their cooperatives to strive to become free of Government capital and subsidies as soon as possible.
http://209.85.173.132/search?q=cache:cNKZPZOcOEAJ:www.fca.gov/about/history/highlights.html+federal+farm+credit+programs+history&hl=en&ct=clnk&cd=4&gl=usFARM CREDIT ADMINISTRATION
(FCA), an independent agency of the executive branch of the federal government that supervises and coordinates the Farm Credit System for American agriculture. The Farm Credit Act of 1971, which superseded all previous legislation, established the FCA to provide long-term and short-term credit to farmers and their cooperatives. Long-term mortgage loans help farmers acquire property or refinance existing debts; short-term loans are needed to finance crop and livestock production and marketing. In addition, the FCA makes emergency crop and feed loans to farmers who cannot obtain funds from other sources.
Credit used by farmers and cooperatives derives from the FCA through a network of farm credit banks, federal land bank associations, production credit associations, and banks for cooperatives. The farm credit banks make loans to agricultural cooperatives for periods ranging from six months to three years. The loans are secured by warehouse receipts for crops or by liens on livestock. The land banks function as credit wholesalers, raising funds in the investment markets through the sale of bonds and lending the money to farmers at low interest rates. Production credit associations finance short-term credit associations, and banks for cooperatives finance cooperative marketing. Other components of the Farm Credit system include the Agricultural Credit Bank, agricultural credit associations, and federal land credit associations.
http://www.questia.com/library/encyclopedia/farm-credit-administration.jsp
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