Federal credit assistance programs were developed in the early 1900's to over­come deficiencies in agricultural capital markets and respond to the problems of poverty, tenancy, and disenfranchisement. Federal credit policies, imple­mented primarily by the Farmers Home Administration and the Farm Credit System, have had a significant impact on the transformation which has taken place in agriculture and on farmers' access to capital. Agriculture continues to be a major recipient of Federal credit assistance. The agencies and institutions providing such assistance now hold about 40 percent of all farm debt.