Farm Bill Invests in Rural America Programs promote economic development for rural communities 05/23/02 Washington - The farm bill passed this month by Congress makes an unprecedented investment of more than $1 billion to strengthen rural areas, with programs to help farm communities develop more value-added agriculture businesses, attract new business ventures and rebuild infrastructure, Senator Kent Conrad said. Conrad, a key member of the House-Senate conference committee that developed the new bill, said the legislation provides $280 million in guarantees for the Rural Business Investment Program and $44 million in grant funding, to encourage investment firms to support rural businesses. The bill also provides $40 million per year in Value-Added Agricultural Market Development grants to assist producer-owned businesses, such as the pasta cooperatives in North Dakota. "The new farm bill aids farm families directly with a strong price support system, but it goes much farther. Rural communities need to develop farmer and rancher-owned cooperatives that will process our food and livestock, and add value to the crops we grow. Rural communities need small businesses that can provide off-farm job opportunities and diversify the economic base in the heartland. We wrote this bill with the idea that farm families and the communities that rely on agriculture need a wide range of support," Conrad said. The bill authorizes the Northern Great Plains Regional Authority, which will coordinate regional efforts with state and local resources to assist rural communities' economic revitalization programs, including improvements to rural water and wastewater systems, access to broadband technology access for business development, and equity investments. "One of the factors this organization will consider is outmigration, a critical problem in North Dakota. Many North Dakota communities will be able to apply for help where they most need it – whether it's rebuilding basic infrastructure like sewer or water systems, or installing high-speed Internet access to attract new business," Conrad said. The bill also continues support for the REDLG (Rural Economic Development Loan and Grant) Program, which will enable rural telephone and electric utilities to make loans to new businesses in the areas they service. The existing program has already provided more than $10 million in loans and nearly $3 million in grants for 65 different North Dakota projects. "Every loan ever made under REDLG has been fully repaid – the government has never lost a nickel on this sensible investment by rural utilities," Conrad said. Conrad said the bill authorizes up to $10 million for the Rural Development Partnership, which coordinates the use of federal, state and local funds. The program in the past has relied on discretionary funds awarded by various federal agencies, but will now receive a stable source of funding. Also included in the rural development title of the legislation is $80 million to help rural residents in unserved or underserved area access their local television station signals, and $50 million in grants to train rural firefighters and emergency medical personnel. "I've already heard from North Dakota economic development officials who see great opportunity for our state in the provisions of this bill. It's tailor-made for North Dakota communities, agri-businesses and entrepreneurs," said Conrad. "It establishes new programs. It supports programs already in place that have been proven to work. Taken as a whole, this new farm bill makes a strong commitment to the vitality of rural communities."