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| Highlights |
Title VI
Rural Development
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Provides funding for rural areas to
undertake strategic planning, feasibility assessments,
and coordination activities with other local, State, and
Federal officials. Provides funding for the backlog of
pending applications for water and wastewater programs
as well as new funding for broadband Internet services,
value-added agricultural programs, rural business
investments, and training for rural emergency personnel.
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 Key provisions
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| Provisions |
1996-2001
farm legislation |
2002 Farm
Bill |
| Rural Community Advancement
Program |
The 1996 Farm Act streamlined and
consolidated programs to provide a more focused Federal
effort and encouraged additional decisionmaking at the
State level. The new Rural Community Advancement Program
(RCAP) became a vehicle for coordinating and
implementing USDA rural development funding in 3 main
areas: 1) community facilities, 2) water and waste
facilities, and 3) business assistance. |
RCAP continues, but the account
structure, including the national reserve account, is
eliminated. |
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| Provisions |
1996-2001
farm legislation |
2002 Farm
Bill |
| Comprehensive and strategic regional
development planning and implementation |
Encouraged on
a relatively small scale through the development of
State strategic plans, the Empowerment Zone/Enterprise
Community Program, the Rural Economic Area Partnership
Initiative, and the Rural Community Development
Initiative. |
A Rural Strategic Investment Program is authorized to
fund regional investment boards. The boards plan and
implement comprehensive regional rural development
strategies. Funding for this program is to come from the
Commodity
Credit Corporation (CCC).This provision also calls
for a national conference on rural America.
A Multijurisdictional Regional Planning Organizations
Program is authorized to fund regional organizations
that provide assistance to local governments and
organizations involved in local development. |
| Regional
authorities |
New regional authorities were established in
rural Alaska (the Denali Commission) in 1999 and in the
Lower Mississippi Delta (the Delta Regional Authority)
in 2000 to plan and fund development strategies in these
regions. |
The Northern Great Plains Regional Authority is
authorized to plan and fund development strategies in
that region.
The Delta Regional Authority is
reauthorized. |
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| Provisions |
1996-2001
farm legislation |
2002 Farm
Bill |
| Water and waste facilities
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The authorization for water and waste
facility grants was increased to $590 million per year
in 1996 Farm Act. |
The $590-million upper limit on the annual amount of
water and waste facility grants is eliminated.
Use of $360 million of CCC funds is authorized for a
one-time reduction in the backlog of qualified, pending
applications for grants and loans for water and waste
disposal and emergency community water assistance.
A provision allows for guaranteeing of bond-financed
loans for water and waste disposal facilities, if
permitted by modifications in the Internal Revenue
Service code. |
| For very small communities |
The Emergency Community Water Assistance
Grant Program for Small Communities program was also
authorized to spend $35 million in fiscal years
1996-2002. At least 50 percent of available funds were
to be allocated to very small communities (under 3,000
population). |
Changes are made affecting the Emergency Community
Water Assistance Program, allowing grants to forestall
imminent decline in water quality and quantity.
Search grants are authorized for $51 million per year
to assist very small communities (under 3,000
population) in preparing feasibility and environmental
studies required to meet water and waste environmental
standards. |
| For nonprofit organizations |
Nonprofit organizations have been
eligible to receive grants to provide technical
assistance and training to rural communities. |
Newly authorized programs include grants
to nonprofits to capitalize revolving loans for water
and waste disposal facilities; and grants to nonprofit
organizations to finance homeowners' water well
systems. |
| Circuit Rider Program |
USDA's Rural Utilities Service has an
existing program with the National Rural Water
Association to provide Rural Water Circuit Rider
Technical Assistance for operations of rural water
systems. |
Authorizes establishment of a Rural Water
Circuit Rider Program, based on the current contract
program, to provide technical assistance for daily
operations of rural water systems. |
| For Alaskan and Native American
communities |
Direct loans and grants for water and
waste facilities have been set aside for targeted
communities, including rural Alaskan villages and Native
American projects. |
Grant programs are authorized for water systems for
rural and native villages in Alaska, and for water and
waste facilities for Native American communities.
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| Provisions |
1996-2001
farm legislation |
2002 Farm
Bill |
| Telecommunications programs |
The Telemedicine and Distance Learning
Program was reauthorized and streamlined in the 1996
Farm Act. Under this program, the Secretary could make
grants and loans to assist rural communities with
construction of facilities and services to provide
distance learning and telemedicine services. Funding was
authorized at $100 million annually. |
The Telemedicine and Distance Learning Program was
reauthorized without changes in substance or funding.
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| Broadband programs |
Amendments to the Telemedicine and
Distance Learning Program in 2001 authorized a Broadband
Pilot Loan Program to provide funding for construction
of facilities and systems providing broadband
transmission services to rural consumers. $2 million in
funding was provided from the Telemedicine and Distance
Learning Program budget. |
Grants, loans, and loan guarantees are
authorized for the purpose of improving access to
broadband telecommunications services in rural areas.
The funds would be for construction, improvement, and
purchase of equipment and facilities for rural broadband
service in eligible communities. Eligible rural
communities have no more than 20,000 inhabitants. The
definition of broadband service would be reviewed
regularly to take into account changes in technology. A
total of $100 million of CCC funds is authorized to
provide loans and loan guarantees to cover fiscal years
(FY) 2002-07. |
| Local television access |
The Launching Our Communities' Access to
Local Television Act provided for a guaranteed loan
program intended to facilitate access, on a
technologically neutral basis, to signals of local
television stations for households located in nonserved
areas and underserved areas. |
Authorizes $80 million in loan guarantees
for the delivery of local broadcast television station
signals to satellite television subscribers in unserved
and underserved local television markets. The funds are
available until December 31, 2006, without fiscal year
limitation. |
| Rural telework |
No similar provisions in previous
legislation. |
A new program would pay the Federal share
of the cost of establishing and operating a national
rural telework institute. Each grant may be up to
$500,000. Authorizes $30 million for each fiscal
year. |
| Rural E-Commerce Extension |
No similar provisions in
previous legislation. |
A Rural Electronic Commerce
Extension Program will be established. The program's
goal is to expand and enhance e-commerce practices and
technology to be used by rural small businesses and
enterprises. Funding is authorized at $60 million per
year. |
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| Provisions |
1996-2001
farm legislation |
2002 Farm
Bill |
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General business assistance
programs
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The Rural Business-Cooperative Service operates
several business assistance programs. As of FY 2002, the
largest in terms of budget authority were the Business
and Industry Loan Program, the Intermediary Relending
Program, Rural Business Enterprise Grants, Rural
Economic Development Loans and Grants, Rural Business
Opportunity Grants, and Rural Cooperative Development
Grants. |
The authorization level for Rural Business
Opportunity Grants was increased from $7.5 million to
$15 million per year. Rural Business Enterprise Grants,
Rural Development Loans and Grants, and Rural
Cooperative Development Grants are continued with minor
modifications.
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| Rural Business Investment
Program |
No similar provisions in
previous legislation. |
A new Rural Business
Investment Program is authorized to guarantee the funds
raised by companies that make equity investments in
rural businesses, with an emphasis on smaller
businesses. This program also authorizes grants to pay
for operational assistance to participating businesses.
The program is authorized to receive $100 million
through the CCC. |
| Venture Capital Demonstration
Program |
The 1996 Farm Act authorized a
Rural Venture Capital Demonstration Program to guarantee
loans made to rural businesses. |
The Rural Venture Capital Demonstration Program was
not extended. |
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| Provisions |
1996-2001
farm legislation |
2002 Farm
Bill |
| Promoting value-added
agriculture
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Existing USDA business loan programs provide
financial assistance to various kinds of businesses,
including value-added agricultural enterprises.
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Rules were liberalized to allow value-added
producers, firms, and cooperatives greater participation
in the Rural Business and Industry Loan Program.
Business and industry loans and guarantees will be
allowed for more types of renewable energy systems, such
as wind energy systems and anaerobic digesters.
Value-added agriculture businesses would also be allowed
to receive Rural Business Enterprise Grants. |
| Value-Added Agricultural Product
Marketing Development |
Value-Added Agricultural Product Marketing
Development Grants Pilot Program received $20 million in
FY 2001 but got no additional funding in FY 2002 to
expand the market for value-added agricultural
products.
In 2001, an Agricultural Marketing Resource Center
was created. It received $5 million to collect and
disseminate information to value-added producers. |
Value-Added Agricultural Product
Marketing Development Grants were authorized to receive
$40 million per year from the CCC, with eligibility
liberalized to increase participation in the program.
Using money authorized under this program, a new
Agriculture Innovation Center Demonstration Program will
be created to provide technical assistance, business and
marketing planning, and other nonfinancial assistance to
value-added businesses. |
| Alternative Agricultural Research and
Commercialization |
The Alternative Agricultural Research and
Commercialization Corporation's revolving loan fund was
established to help finance new industrial uses for
agricultural products, but it received no appropriations
after FY 1999. |
Authorization is repealed for the
Alternative Agricultural Research and Commercialization
Corporation. |
| Farmworker training |
No similar program in previous
legislation. |
A new program to train farmworkers in new
technologies required for higher value crops is
authorized for $10 million per year. |
| Delta region assistance |
Special funding had been authorized to
assist value-added business activity in the Delta
region. |
The Delta region is reauthorized to
receive $7 million per year for animal nutrition
technology development and value-added manufacturing.
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| Provisions |
1996-2001
farm legislation |
2002 Farm
Bill |
| Community facilities and related
programs |
As of 2002, the community programs
administered by the Rural Housing Service included
Community Facilities grants and loans/guarantees. |
Authorizes several new programs: the
Rural Firefighters and Emergency Medical Personnel
Training Program; Historic Barn Preservation grants to
help States identify and preserve historic barns; and
Community Facilities Grants to Tribal Colleges and
Universities. New rules would reserve 10 percent of
Community Facilities funds for child care until April 1
of each fiscal year. In addition, loan guarantees are
allowed for bond-financed community facilities loans, if
permitted by modifications in the Internal Revenue
Service code. |
| National Rural
Development Partnership |
The National Rural Development
Partnership and its State Rural Development Councils
(which have operated without authorization since the
early 1990s) assisted the coordination of USDA's rural
development programs with other Federal and State
programs affecting rural development. |
Establishes the National Rural
Development Partnership as a Federal program, setting
new rules on how the partnership is run, and authorizing
it for $10 million per year. |
| Fund for Rural
America |
Established the Fund for Rural America to
augment existing resources for agricultural research and
rural development. Funding was authorized for $100
million per year. |
Not extended, but projects already funded
will be completed. |
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