Legal Definitions - Farmers' Home Administration

Definition: The Farmers' Home Administration (FmHA) was an agency in the U.S. Department of Agriculture that provided mortgages and insured loans to farmers. It also funded rural public-works projects. The agency was abolished in 1994, and its functions were taken over by other agencies in the Department. The abbreviation for Farmers' Home Administration is FmHA or FHA.

Example: A farmer in a rural area needed a loan to buy new equipment for his farm. He applied for a loan from the Farmers' Home Administration and was approved. The FmHA provided him with the funds he needed to purchase the equipment.

Explanation: This example illustrates how the Farmers' Home Administration provided loans to farmers to help them with their agricultural needs. The agency was created to support farmers and rural communities, and this example shows how it fulfilled that mission.