Rural Electrification Administration

Definition

The Rural Electrification Administration (REA) was a New Deal agency established in 1935 to promote and facilitate the provision of electricity to rural areas across the United States. This program aimed to improve the quality of life for rural residents by providing them with access to modern electrical conveniences, which were often taken for granted in urban areas. By funding cooperative electric companies, the REA played a crucial role in transforming rural communities, enhancing agriculture, and boosting local economies.

5 Must Know Facts For Your Next Test

1. By the late 1930s, the REA had facilitated the electrification of over 400,000 farms and homes across rural America.
2. Before the REA, only about 10% of rural households had electricity compared to over 80% in urban areas.
3. The REA helped create a network of more than 1,000 rural electric cooperatives that provided affordable electricity to their members.
4. The agency provided low-interest loans to cooperatives for building infrastructure like power lines and substations to deliver electricity to remote areas.
5. The availability of electricity significantly improved rural life by enabling better education opportunities, increased productivity in agriculture, and overall enhancement of living standards.

Review Questions

• How did the Rural Electrification Administration change the landscape of rural America during the New Deal era?
  • The Rural Electrification Administration fundamentally transformed rural America by providing electricity to previously underserved areas. This led to significant improvements in daily life, including access to modern appliances and enhanced agricultural productivity. The REA's efforts in funding cooperative electric companies not only brought light into homes but also stimulated local economies by creating jobs and improving quality of life.
• Evaluate the role of cooperative electric associations in the success of the Rural Electrification Administration's mission.
  • Cooperative electric associations were crucial for the success of the Rural Electrification Administration as they allowed local communities to take ownership of their power supply. These non-profit organizations enabled residents to pool resources and advocate for their needs while ensuring affordable and reliable electricity. The REA’s funding and support for these cooperatives facilitated the rapid expansion of electrical infrastructure in rural areas, making them vital partners in achieving the agency’s objectives.
• Assess the long-term impacts of the Rural Electrification Administration on rural communities and their economies after its establishment.
  • The long-term impacts of the Rural Electrification Administration are profound, as it laid the foundation for modern infrastructure in rural America. By significantly increasing access to electricity, it improved education, healthcare, and overall quality of life. Economically, electrification helped boost agricultural efficiency through modern farming techniques and equipment, which ultimately contributed to higher income levels in rural communities. The REA not only changed how rural residents lived but also stimulated growth in various sectors, shaping the economic landscape for generations to come.

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, setting a precedent for regional development projects.

Cooperative Electric Associations: Non-profit organizations formed by rural residents to collectively own and operate electric utility services, often funded through REA loans.

New Deal: A series of programs and reforms introduced by President Franklin D. Roosevelt during the Great Depression aimed at providing economic relief, recovery, and reform.