The U.S. Farm Credit System and Agricultural Sector Growth:
Evidence from Early Expansion, 1920-1940

Revise and Resubmit, American Journal of Agricultural Economics

This paper explores the impact of the expansion of the founding of the Production Credit Associations (PCA), an arm of the Farm Credit System, on agricultural yield and input use following the agricultural crisis of the 1920s. I estimate that counties 100 kilometers closer to a PCA had roughly 10\% higher crop revenue per acre and higher growth in use of fertilizer and tractors. This paper makes a significant contribution the literature on the impact of government sponsored enterprises on the early US agricultural economy and its use as a cost-effective tool to address market frictions.

Draft available on request.