Rural Electrification Administration
The Rural Electrification Administration (REA) was established in the 1930s to address the lack of electrical power in rural America, where only 11 percent of farms had electricity in 1934. Many private utility companies deemed it unprofitable to extend their services to remote areas, leaving a significant portion of the rural population without access to modern conveniences. In response, farmers began to organize nonprofit cooperatives to generate and distribute electricity themselves. The introduction of electricity transformed farming practices, enabling tasks such as curing hay, milking cows, and creating more comfortable living conditions, thereby enhancing agricultural productivity. The REA played a pivotal role in increasing the electrification of rural areas, resulting in 50 percent of farms being electrified by 1945. This dramatic improvement not only modernized agriculture but also stimulated local economies through increased sales of electrical appliances. Overall, the REA was instrumental in bringing essential services to rural communities, promoting both recovery and relief during a challenging period in American history.
On this Page
Rural Electrification Administration
Identification Federal agency for electrifying farms and rural homes
Date Established on May 11, 1935
By executive order, President Franklin D. Roosevelt created the Rural Electrification Administration (REA) to stimulate the economy and promote rural electrification. Congress passed the Rural Electrification Act in 1936 to provide $100 million in long-term electrification loans, permit presidential appointment of an REA administrator to make electrification loans in U.S. territories and states, authorize and conduct studies on rural electrification, and disseminate study results.
Electrification was desirable for farm modernization and healthy living conditions, but only 11 percent of American farms had electricity in 1934. Private utility companies argued that supplying power to rural areas was unprofitable.
Generating power for the remaining 89 percent of farms and rural homes through private, wind-driven sources or individual gasoline-powered generators was costly and impractical. Farmers began considering nonprofit cooperatives without power companies.
Electricity brought farm modernization. It allowed for curing hay in barns, milking cows, and warming baby chicks. Advertisers emphasized the connection between electrified farms and increased productivity. Increased sales of electrical appliances stimulated the economy. Electrification brought relief to rural areas. Three subscribers per mile were generally necessary to run power lines; initial enrollment was usually five dollars.
Impact
The REA increased the electrification of farms and rural homes. By 1945, 50 percent of farms were electrified, which was a significant increase from the 11 percent of 1934. The REA stimulated recovery and brought relief.
Bibliography
Brown, D. Clayton. Electricity for Rural America: The Fight for the REA. Westport, Conn.: Greenwood Press, 1980.
Davis, Anita P. Georgia During the Great Depression. Jefferson, N.C.: McFarland, 2008.
National Rural Electric Cooperative Association. Meeting America’s Need for Electricity. Washington, D.C.: National Rural Electric Cooperative Association, 1993.