How the U.S. Government Developed and Evolved Rural Relief and Rehabilitation Programs During and After the Great Depression

In 1933, Congress passed the Federal Emergency Relief Act (FERA) to provide aid to Americans suffering from unemployment and poverty. Rather than creating a large new federal bureaucracy, the government partnered with states to distribute relief. Recognizing that rural communities had different needs than urban areas, FERA established a Rural Rehabilitation Division in 1934 and later authorized rural rehabilitation corporations in individual states.

These corporations purchased farmland, divided it into smaller plots, and helped displaced farm families obtain homes and land through mortgages and rehabilitation programs. They also developed entire communities such as Dyess Colony (Arkansas), Cherry Lake (Florida), Pine Mountain Valley (Georgia), and Matanuska Valley Colony (Alaska). Many states expanded their efforts beyond farming to include education, childcare, libraries, and other social services.

In 1935, Congress shifted responsibility from the states to the federal government through the Resettlement Administration, which took control of most corporation assets. Management later passed to the Farm Security Administration and then the Farmers Home Administration (FmHA). Over time, states sought to regain authority over these assets, leading to legal challenges and negotiations.

By 1973, new agreements allowed states to once again administer their own rehabilitation assets, provided they followed federal guidelines. Many state organizations used these resources for farm loans, student loans, youth agricultural programs, rural development projects, and other initiatives.

The passage concludes that the success of rural rehabilitation stemmed from allowing states flexibility to design programs that met local needs, and argues that this state-centered approach remains valuable for improving the economic well-being of rural America.

The National Association of Rural Rehabilitation Corporations is Born

In 1971, several people involved with the administration of Rural Rehabilitation assets expressed a desire to organize a meeting of all Rural Rehabilitation organizations and representatives. They conceived the idea of a meeting at a central location to discuss matters of mutual interest and concern, including ways to manage assets, possible uses of assets, a need for exchange of ideas among state groups, and a desirability for a national organization.

By the end of the year, the National Association of Rural Rehabilitation Corporations (NARRC) had come into existence.
In 1981, in Dearborn, Michigan, Articles of Association were adopted to replace the first bylaws. Since then, member states have met each year, at a different location, to hold an Annual Meeting. Member states and their officers have an opportunity to share ideas and encourage one another as they work to continue to fulfill the original goals that had begun in 1934. The exception was during the COVID Pandemic in 2020 and 2021, when it was not possible to meet in person.

Today there are 24 active member states in the organization, and there has been a close friendship among representatives from each state. Each year, members look forward to meeting in person to rekindle friendships and share ideas.