USDA Implements Rural Development Programs with New Farm Bill

With the 2008 Farm Bill, Congress has enabled the USDA to continue providing much needed rural development in smaller communities across America. The bill earmarks $547 million to fund 232 projects with provisions for water and waste, communication programs, value-added agriculture, electric programs, general business assistance, and regional development.

Water and Waste Programs

The new Farm Bill authorizes $120 million for water programs, with priority for upgrading existing and implementing new water systems. Loans and grants are available to eligible applicants for improving rural water systems and farm water operations.

The bill also continues the Emergency Water Assistance Program when disaster strikes in rural areas. Cities and towns of less than a 10,000 population are eligible for assistance due to floods, earthquakes, or other natural disaster that causes disruption and decline of water quality and availability.

Communication and Information Programs

The new Farm Bill reauthorizes a loan and grant program that assists rural communities in constructing distance learning and telemedicine facilities. It also improves the infrastructure of health care facilities with new information technology.

Additional funds are also available for loans and grants to communities of 20,000 or less for improving broadband access. The bill also directs the Secretary of the Interior to develop a national rural broadband strategy. Additional communication enhancements include funds to assist rural television stations in their transition to digital programming and broadcasting.

Value-Added Agriculture

Value-added agriculture includes programs and product marketing strategies that enhance and improve the way agriculture products are grown and sold. Loan programs and grants are available to farmers to use technology such as renewable or wind energy to aid in the growing of agriculture goods. An additional $15 million is included with the 2008 Farm Bill to continue grants for marketing planning and development.

New to the 2008 bill are funds to study agricultural transportation needs. A report will be delivered to Congress detailing issues regarding renewable fuel, electricity, and will address concerns and potential improvements to railroad, truck, and barge transportation.

Rural Electric Programs

The Farm Bill continues funding for loan guarantees and grants for the development and use of energy efficiency and renewable energy programs. It encourages energy conversion systems from natural energy fuels, such as solar, wind, geothermal, hydropower, and biomass. With these types of renewable and conversion energy sources in mind, the USDA also has the authority to make loans directly to consumers for rural electric cooperatives that generate and resell renewable electricity.

A study has also been authorized by the new Farm Bill for the electric power generation needs of rural communities. It will take a closer look at renewable electricity financing, cooperative needs and issues, and look at the impact of electricity costs on consumers.

General Business Assistance

The USDA is authorized to continue to provide grants and other financial assistance for small businesses in rural communities. The Farm Bill creates a new Rural Microentrepreneur Assistance program that provides technical assistance, training, grants, and small loans to small business developers in smaller communities.

Regional Development

With the 2008 Farm Bill, the USDA is reauthorized to help fund and provide assistance to Regional Economic Area Partnerships (REAPs) for existing reaps in limited states. It also created a Rural Collaborative Investment Program (RCIP) to help form regional investment boards that will help implement strategies for regional development.

Rural community development is still a priority for the USDA, as evidenced by the new 2008 Farm Bill. Not only does the Farm Bill aid rural development, but it also empowers programs for the research and development of farms, forestry, trade, energy and conservation. With the help of Congress, rural communities can still rely on the USDA for help and aid with developing programs that benefit rural residents.