Otis Singleton
The electrification of rural America was a slow process, with most farms located in remote areas, far from municipal power plants in cities. By the end of the 1920s, most American cities had electricity, but by 1930, only one in ten farms had access. The Rural Electrification Act of 1936 (REA) was a turning point, providing federal loans to bring electricity to rural areas. This act was part of President Franklin D. Roosevelt's New Deal to tackle high unemployment during the Great Depression. The REA funding and the work of rural electric cooperatives transformed agriculture and life in rural America, with close to 80% of US farms having electric service by 1950.
| Characteristics | Values |
|---|---|
| Date of Rural Electrification Act | 20 May 1936 |
| Date of Executive Order No. 7037 | 11 May 1935 |
| Purpose of Rural Electrification Act | Provide federal loans for installation of electrical distribution systems in isolated rural areas |
| Rural Electrification Administration | Provided loans to farmer cooperatives to bring electricity to rural areas |
| Rural Electrification Administration funding | $34 billion since 2009 |
| Percentage of rural farms with electric service by 1950 | 80% |
| Percentage of rural farms with electric service today | 99% |
| Number of rural customers with electric service today | 5.5 million |
| Cost of building transmission lines to farms | $2,000 per mile |
| Cost of building transmission lines to farms in 2020 dollars | Over $30,000 |
| Year electricity became common in American cities | 1920s |
| Percentage of urban and nonfarm rural homes with access to electricity by 1930 | 90% |
| Percentage of farms with access to electricity by 1930 | 10% |
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What You'll Learn
The Rural Electrification Act of 1936
The REA was established as a government agency, authorized to make loans to wire homes and provide them with lights and appliances. The funding was channelled through electric cooperatives or co-ops, which were member-owned and purchased power at wholesale prices. They then distributed electricity using their own transmission and distribution lines. This was a response to the reluctance of existing utilities to take on the costly task of extending power lines to rural customers.
The electric cooperatives were not-for-profit entities that borrowed funds from the REA to build lines and provide service. The REA also helped these cooperatives find ways to reduce costs, for example, by hiring engineers to design new ways to build the lines. The cooperatives did not generate power themselves but purchased it wholesale from private utilities.
The Rural Electrification Act was one of many New Deal proposals by President Franklin D. Roosevelt to remedy high unemployment during the Great Depression. During this time, communities banded together to bring electricity to America's farmland. The Act was also a response to the desire for better lighting, as people sought alternatives to candles or oil and gas lamps, which produced little light and gave off heat and smoke.
The REA had a significant impact on the lives of people in rural areas, with improvements such as pumps to supply water to homes, electric stoves, and washing machines. By 1940, 59% of farms in Oregon and 71% in Washington had electricity, thanks to the REA, the completion of the Bonneville Dam, and the creation of rural electric utilities.
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Electric cooperatives
The first official action towards rural electrification came with the passage of the Tennessee Valley Authority (TVA) Act in May 1933, which authorized the construction of transmission lines to serve "farms and small villages that are not otherwise supplied with electricity at reasonable rates." On May 11, 1935, President Roosevelt signed Executive Order No. 7037, establishing the Rural Electrification Administration (REA). The Rural Electrification Act was passed on May 20, 1936, providing federal loans for the installation of electrical distribution systems in rural areas.
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The Tennessee Valley Authority Act
In the late 19th century, the Army Corps of Engineers identified several potential dam sites along the Tennessee River for electricity generation and navigation improvements. However, it wasn't until the 1930s that the push for public ownership of utilities, particularly hydroelectric power facilities, gained momentum. The idea of providing federal assistance for rural electrification also gained support when President Franklin D. Roosevelt took office in 1933.
On May 18, 1933, President Roosevelt signed the Tennessee Valley Authority Act, creating the Tennessee Valley Authority (TVA). The TVA was established as a federal corporation tasked with addressing the comprehensive resource development needs of the Tennessee Valley region. This included improving navigation and controlling floodwaters in the Tennessee and Mississippi River Basins, as well as providing cheap electric power to the area. The act authorized the construction of dams and transmission lines to serve farms and small villages lacking access to reasonably priced electricity.
The establishment of the TVA was a significant step towards modernizing the region and addressing human and economic challenges. It developed fertilizers, improved farming techniques, and promoted conservation and social programs. By 1934, the TVA employed over 9,000 people, and its impact extended beyond the Tennessee Valley, covering parts of Alabama, Mississippi, Kentucky, Virginia, North Carolina, and Georgia.
The TVA faced some controversies, including community displacement due to dam construction and power struggles between its board members. Despite this, it played a crucial role in bringing electricity to rural America, particularly through its lending program and support for electric cooperatives. The Rural Electrification Act of 1936, enacted a year after the TVA Act, provided federal loans for installing electrical distribution systems in isolated rural areas, with funds channelled through cooperative electric power companies. This act further accelerated the electrification of rural communities, improving the lives of farmers and rural residents across the nation.
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Electric lighting
The history of electric lighting in rural America is a story of gradual progress and innovation. At the turn of the 19th century, people in rural areas relied mainly on candles or oil and gas lamps for lighting their homes and streets. These sources produced a limited amount of light and had several drawbacks, such as producing heat and smoke, and requiring regular maintenance.
The introduction of electric lighting offered a significant improvement in brightness and convenience. The first electric arc lamps appeared in the 1870s, illuminating city streets, and the incandescent light bulb was introduced in the 1880s. Wabash, Indiana, became the first town in the world to be generally lit by electricity in 1880, using the Brush arc lighting system. This system soon spread to other cities, with New York City, for example, having 1,500 electrical lights by 1893.
However, access to electricity in rural areas lagged far behind. By 1930, about nine out of ten urban and nonfarm rural homes had electricity, but only around one in ten farms did. This disparity fueled a growing divide in living standards between city and farm life. The high costs of building transmission lines to remote areas and the lower population density made electrification of rural areas less economically attractive to power companies.
During the Great Depression, communities came together to bring electricity to rural areas, and the issue gained political momentum when Franklin D. Roosevelt included it in his 1932 presidential campaign. The Rural Electrification Administration (REA) was established in 1935, and the Rural Electrification Act was passed in 1936, providing federal loans for the installation of electrical distribution systems in rural areas. REA officials soon realized that electric cooperatives, or "co-ops," would be crucial to achieving rural electrification. These cooperatives borrowed funds from the REA to build lines and provide service on a not-for-profit basis.
By the end of World War II, roughly half of the farms in America had electricity, and by the 1950s, they had nearly caught up with cities in terms of access to electricity. Today, about 99 percent of the nation's farms have electric service, thanks to the efforts of those early rural communities and the establishment of the REA and related legislation.
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Electric stoves and appliances
The introduction of electric lighting in the late 19th century first as arc lamps in the 1870s and then as incandescent light bulbs in the 1880s marked the beginning of the electrification of America. Electric lighting offered a brighter future, free from the heat and smoke produced by candles or oil and gas lamps. However, electricity was initially a novelty for the rich, and it wasn't until the turn of the Roaring '20s that most American cities became electrified.
By the 1930s, electricity access was still limited in rural areas, with only one in ten farms having electricity, compared to nine out of ten urban and nonfarm rural homes. The high costs of building transmission lines to remote areas and the lower population density in rural communities made electrification unattractive to utilities.
During the Great Depression, communities came together to bring electricity to rural areas, and in 1933, President Roosevelt signed Executive Order No. 7037, establishing the Rural Electrification Administration (REA). The REA provided federal loans for the installation of electrical distribution systems in rural areas and worked with electric cooperatives to extend power lines and provide service to farms and homes.
The Rural Electrification Act of 1936 further solidified the REA's role, authorizing it to make loans for wiring homes and providing lighting and appliances. The act also addressed the issue of expensive plug-connected appliances by allowing for the installation of a single outlet per room. With federal support, sales of electric appliances skyrocketed in the early 1940s, transforming the lives of rural Americans and improving productivity and happiness.
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Frequently asked questions
The Rural Electrification Act of 1936 (REA) was enacted on May 20, 1936, to provide federal loans for installing electricity in rural America. This act allowed the government to lend money to farmers who had formed non-profit cooperatives to bring electricity to rural areas.
The REA transformed agriculture and life in rural America. By 1950, close to 80% of U.S. farms had electric service, and today, about 99% of the nation's farms have electric service.
Before the REA, most farms were in remote locations, far from municipal power plants. Utilities estimated it would cost around $2,000 per mile to build transmission lines to farms, and due to the sparse population, the costs of electricity for rural customers were often much higher than for urban customers. As a result, most farms did not have electricity, and their economies were entirely dependent on agriculture.
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