Stimulus package provides funds for rural America

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Congressional Democrats met over the past two days and arrived at the conference report for an economic stimulus package compromise between House and Senate leaders, with the bill now totaling $789 billion, or $1.1 trillion after interest. It contains about $300 billion in tax cuts and an additional $311 billion in discretionary spending. It includes roughly $97 billion in new spending programs, and $92 billion of expansions of existing federal programs.

The House passed the bill Friday afternoon on a party-line vote of 246 to 183; no Republicans voted in favor. The Senate now has to make sure it maintains the 60 votes needed for approval.

The recovery package contains key provisions that will direct funding toward rural development, nutrition and conservation initiatives, many of which were included in the farm bill.

"From increasing loans to rural businesses to ensuring broadband coverage, this economic recovery package connects rural America with the services residents' need, while at the same time, creates jobs,•bCrLf said Senate Agriculture Committee Chairman Tom Harkin. 

National Farmers Union President Tom Buis added that the package expands nutrition assistance programs. "This will help farmers, who as a result of the economic downturn have experienced decreased demand for their products; and families, millions of whom have lost jobs, put food on the table."

Buis added, "The package's many infrastructure improvements will make necessary investments in our roads and bridges, ensure our nation has clean water and create job opportunities across the country."

Some key agricultural priorities that reportedly made the conference report include:

• $50 million for maintaining and upgrading USDA computer systems;
• $20.4 million for direct farm operating loans, which will fund $173 million in loans to farmers;
• $4.7 billion for competitive grants to accelerate broadband deployment in unserved and underserved areas

The conference agreement also includes language to allow Commodity Credit Corporation funds to be used for administrative expenses and technical assistance in implementing the 2008 Farm Bill over the next two fiscal years, which should help USDA with timely implementation.

The bill also includes provisions to address some 2008 agricultural losses based on the new Supplemental Revenue Assistance Payments (SURE) disaster assistance program.

Here are some of the highlights released by Harkin:

Rural Development Highlights

Broadband: $2.5 billion for grants, loans and guarantees through the Rural Utility Service, to provide improved broadband availability in rural areas.

Rural Water and Waste Disposal Loans and Grants: $1.38 billion to support $968 million in grants and $2.8 billion in loans to eliminate the approved application backlog.

Agricultural Research Service Building Improvements:  $176 million in funding to address the deferred maintenance of the ARS's aging laboratory and research infrastructure. Funding from this provision could be used to address the over $20 million in improvement need at the Animal Disease Lab in Ames, Iowa. 

Rural Housing Assistance: $200 million to support $11.4 billion in direct and guaranteed loans that will provide home ownership opportunities for low to moderate-income families in rural areas. 

Rural Community Facility Program for towns of under 20,000: $130 million to support $1.17 billion in loans and $67 million in grants with an emphasis on day care and elder care facilities, hospitals, health clinics and public safety.

Business & Industry Loan Guarantee Program: $150 million to support $3 billion in guarantees and $20 million in related grants particularly important for many businesses facing credit difficulties. These loans and grants will help bolster the existing credit structure to improve, develop, or finance business, industry, and employment to improve the economic climate in rural communities of fewer than 50,000 people. 

Food and Nutrition Highlights

The Emergency Food Assistance Program (TEFAP): $150 million to help supplement the diets of low-income individuals, including elderly people, through foods provided at food banks, community food pantries and soup kitchens and shelters. 

Women, Infants and Children Program: $400 million in added funding to help meet the need for supplemental foods, health care referrals, and nutrition education for low-income pregnant, breastfeeding, and non-breastfeeding postpartum women, and to infants and children up to age five who are found to be at nutritional risk.

Supplemental Nutrition Assistance Program (SNAP).  To help families obtain food, the bill provides a temporary increase in food assistance benefits provided through the Supplemental Nutrition Assistance Program, benefiting 31 million Americans.

Conservation Highlights

Watershed Flood and Prevention Operations:  $290 million was provided for this program, with $145 million set aside for the purchase and restoration of floodplains.  The floodplain easement funding is particularly important to Iowa, which has an existing backlog of floodplain easements.

"The work to clear debris can be substantial, but this effort puts real money in the pockets of farmers who will spend it locally and will help create well-paying construction jobs in rural areas.  The funding has the additional cost benefit of taking land highly susceptible to floods out of crop production.  It is also particularly helpful for Iowa producers still reeling from Midwest floods,•bCrLf said Harkin. 

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