Rural Electrification Administration

Definition

The Rural Electrification Administration (REA) was a U.S. government agency created in 1935 to provide federal loans for the installation of electrical distribution systems in rural areas. This initiative aimed to bring electricity to farms and rural communities, significantly improving the quality of life and agricultural productivity. The REA played a crucial role in modernizing agriculture, as electricity allowed farmers to utilize new technologies, improve irrigation, and enhance food preservation.

5 Must Know Facts For Your Next Test

1. The REA was established during the New Deal era, reflecting the government's commitment to addressing rural poverty and modernizing agriculture.
2. By 1941, the REA had provided loans that enabled over 400 rural electric cooperatives to bring electricity to more than 1 million farms.
3. The introduction of electricity through the REA drastically changed farm operations, allowing for the use of electric appliances, refrigeration, and mechanized farming equipment.
4. The success of the REA helped to narrow the gap between urban and rural living standards, contributing to a significant improvement in quality of life for many rural Americans.
5. The REA remains influential today as it laid the groundwork for subsequent rural development initiatives and the establishment of rural broadband access.

Review Questions

• How did the establishment of the Rural Electrification Administration impact agricultural innovations in rural America?
  • The establishment of the Rural Electrification Administration had a profound impact on agricultural innovations by providing farmers with access to electricity. With electricity, farmers could adopt new technologies such as electric irrigation systems, machinery for planting and harvesting, and refrigeration for preserving food. This access not only increased agricultural productivity but also improved living conditions, allowing families to enjoy modern conveniences that were previously unavailable in rural areas.
• Analyze the relationship between the Rural Electrification Administration and cooperative electric associations in promoting rural electrification.
  • The Rural Electrification Administration and cooperative electric associations worked hand-in-hand to promote rural electrification. The REA provided funding and loans that enabled local farmers to form cooperatives, which allowed them to collectively build electrical distribution systems. This partnership was essential in overcoming the challenges of reaching remote areas where private companies were unwilling or unable to provide services due to low profitability. Together, they helped transform rural communities by ensuring that electricity became a fundamental utility.
• Evaluate the long-term effects of the Rural Electrification Administration on rural communities and how it shaped subsequent policies for rural development.
  • The long-term effects of the Rural Electrification Administration on rural communities are significant. By providing access to electricity, it not only improved agricultural efficiency but also spurred economic growth and enhanced quality of life. The success of the REA set a precedent for future policies aimed at rural development, such as initiatives for broadband access and other utilities. Its legacy continues as a model for government intervention in improving infrastructure and services in underserved areas, highlighting the ongoing importance of equitable access to technology in promoting economic prosperity.

Related terms

Tennessee Valley Authority: A federally owned corporation created in 1933 to provide navigation, flood control, electricity generation, and economic development in the Tennessee Valley region.

Cooperative Electric Associations: Non-profit organizations formed by local farmers and rural residents to provide electrical services to their communities, often supported by funding from the REA.

New Deal: A series of programs and policies implemented by President Franklin D. Roosevelt in response to the Great Depression, aimed at economic recovery and social reform.