Rural Electrification Administration

Definition

The Rural Electrification Administration (REA) was a New Deal agency established in 1935 to provide federal loans for the installation of electrical distribution systems in rural areas of the United States. The REA aimed to improve the quality of life and promote economic development in underserved rural communities by bringing electricity to homes and farms, which had a profound impact on agriculture, education, and health.

5 Must Know Facts For Your Next Test

1. The REA played a crucial role in electrifying rural America, where only about 10% of farms had electricity before its establishment.
2. By 1941, the REA had helped to extend electric service to over 400,000 farms across the United States.
3. The agency not only provided funding but also technical assistance and guidance on establishing electric cooperatives.
4. The widespread availability of electricity transformed rural life by enabling modern appliances, improving agricultural practices, and facilitating better education through access to media.
5. The success of the REA influenced similar programs worldwide, demonstrating how government intervention can foster economic development in underserved regions.

Review Questions

• How did the establishment of the Rural Electrification Administration address the economic challenges faced by rural communities during the Great Depression?
  • The Rural Electrification Administration was created to tackle the economic challenges faced by rural communities by providing essential infrastructure that they lacked. With only a small percentage of farms having access to electricity at that time, the REA aimed to stimulate economic growth through federal loans for electrical distribution systems. This access allowed farmers to modernize their operations and improve productivity, while also enhancing their quality of life by enabling the use of electric appliances.
• Discuss the impact of the REA on agricultural practices and education in rural areas.
  • The Rural Electrification Administration significantly transformed agricultural practices by enabling farmers to adopt modern machinery and technologies powered by electricity. This modernization led to increased efficiency and productivity in farming. Additionally, electricity improved educational opportunities as schools could use electric lighting and modern teaching tools, providing a more conducive learning environment for students in rural areas.
• Evaluate how the REA’s model of cooperative electric associations changed community dynamics in rural America and its implications for federal social policy.
  • The REA's model of cooperative electric associations fundamentally altered community dynamics by empowering local residents to take control of their energy needs. These cooperatives fostered a sense of community engagement and collaboration as members worked together to secure electricity for their neighborhoods. This shift not only improved access to power but also laid a framework for future federal social policies that emphasized local solutions and community-driven initiatives, illustrating how government support can enhance grassroots movements.

Related terms

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

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

Cooperative Electric Associations: Non-profit organizations formed by communities to provide electric service, often funded by REA loans, which enabled local control over energy access.