FEDERAL FARM BOARD. The farm relief legislation enacted by the United States Congress in 1929, known as the Agricultural Marketing Act, provides for a Federal Farm Board of eight members, and a revolving fund of $500,000,00o available for lending to cooperative associations or to stabilization corpora tions owned by cooperatives, to carry out the purpose of the act— the purpose being "to promote the effective merchandising of agricultural commodities" so that "agriculture will be placed on a basis of economic equality with other industries" and "to pro tect, control and stabilize" the marketing of agricultural com modities.
The Board is instructed to invite the cooperative associations handling any agricultural commodity to establish an advisory commodity committee of seven members to represent such com modity before the Board. It is authorized to make loans to assist in marketing, forming clearing house associations, extending the membership of the cooperative association applying for the loan, and enabling the cooperative association to make more favorable cash advances to its members.
Upon application of the advisory committee of any commodity the Board is empowered to recognize stabilization corporations,— that is, corporate marketing agencies owned only by cooperatives —and to advance loans to them for working capital and for con troling any surplus in the commodities which they may be organ ized to handle. The Board is also authorized to enter into agree ments to insure cooperative associations against loss through price declines. (See AGRICULTURAL PRICES; AGRICULTURAL CREDITS; UNITED STATES, I 929-193 5. )