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.
