Rural Electrification Administration

Definition

The Rural Electrification Administration (REA) was a New Deal agency created in 1935 to promote the construction of electrical infrastructure in rural areas of the United States, including New Mexico. The REA aimed to provide affordable electricity to farmers and rural residents, helping to modernize agriculture and improve the quality of life for those living outside urban centers. Its establishment marked a significant shift in government policy towards rural development and the recognition of the importance of electricity in fostering economic growth.

5 Must Know Facts For Your Next Test

1. The REA was established during the Great Depression as part of Franklin D. Roosevelt's New Deal programs to stimulate economic growth and improve living conditions.
2. In New Mexico, the REA played a crucial role in bringing electricity to remote areas, significantly impacting farming practices and rural lifestyles.
3. The agency provided loans and technical assistance to local electric cooperatives, which were responsible for building and maintaining electrical infrastructure in rural communities.
4. By the late 1940s, the REA had helped electrify over 90% of rural homes in the United States, transforming agriculture and enhancing access to modern conveniences.
5. The work of the REA not only improved living standards but also contributed to greater social and economic equity by reducing disparities between urban and rural areas.

Review Questions

• How did the establishment of the Rural Electrification Administration impact the agricultural economy in New Mexico?
  • The establishment of the Rural Electrification Administration had a profound impact on New Mexico's agricultural economy by providing farmers with access to affordable electricity. This access allowed for the modernization of farming techniques, including the use of electric machinery for irrigation, which increased productivity. Furthermore, it improved overall living standards for rural families by enabling them to adopt modern conveniences, ultimately helping to stabilize and grow the rural economy in the state.
• Evaluate the effectiveness of the REA in achieving its goal of electrifying rural areas, specifically in relation to local cooperatives in New Mexico.
  • The effectiveness of the REA in electrifying rural areas can be seen through its collaboration with local cooperatives in New Mexico. These cooperatives successfully leveraged REA funding and technical support to build electrical infrastructure in remote communities. By empowering local organizations, the REA not only facilitated rapid electrification but also fostered a sense of community ownership and involvement in managing their energy needs. This approach proved highly effective as it led to widespread electrification across many rural areas.
• Analyze the long-term implications of rural electrification on social and economic dynamics in New Mexico following the establishment of the REA.
  • The long-term implications of rural electrification initiated by the REA significantly reshaped social and economic dynamics in New Mexico. Access to electricity enhanced educational opportunities as schools became better equipped, thereby improving literacy rates and skill development among residents. Economically, electrification spurred diversification in agriculture, enabling farmers to explore new markets and increase yields. Socially, it helped bridge the gap between urban and rural populations, fostering greater interaction and exchange of ideas while promoting community cohesion through shared access to modern conveniences.

Related terms

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.

Cooperatives: Organizations formed by groups of people to meet their mutual needs, such as providing electricity to rural areas, often supported by the REA.

Public Utility: A company that provides essential services, such as electricity or water, to the public, often regulated by government entities.