Johanns Calls for More Efficient Rural Development
Ag Secretary proposes a more streamlined USDA Rural Development program, with expanded funding for health care and community facilities; a Friday Washington Post article says most of the program's money is misdirected.
Compiled by staff
Published: Apr 6, 2007
Perhaps coincidentally, Agriculture Secretary Mike Johanns spoke on proposed changes to the USDA Rural Development program the day before the Washington Post printed an article indicting the program with spending most of its funds in suburban areas close to cities.
According to the Post article Friday, over half of the $70 billion in grants, loans and loan guarantees the program has handed out since 2001 have gone to communities within easy commute of a midsize city: "More than three times as much money went to metropolitan areas with populations of 50,000 or more ($30.3 billion) as to poor or shrinking rural counties ($8.6 billion)."
On Thursday, Johanns discussed the Rural Development program and actually proposed that the 2007 Farm Bill include changes that would streamline the program. The idea, Johanns says, is to distribute the money more efficiently, with more going towards rural health care and community facilities such as distance learning systems in schools.
Other changes would include the combination of energy grants platforms, which Johanns says "would start the process of consolidating the renewable energy grant and research programs of USDA into one platform and increase interagency coordination"; consolidating the Business Loan and Loan Guarantee platforms to make it easier for guaranteed lenders to participate in these programs and eliminate confusion; creating a Business Grants platform, including priority for specialty crops in Value-added Grants; and consolidating various authorities into a Community Programs platform.
Also on Thursday, Agriculture Under Secretary for Rural Development Thomas C. Dorr announced that USDA is making available $62.9 million in distance learning and telemedicine loans, $75 million in loan and grant combinations, and $15 million in grants.
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Tagged: usda, farm, farm bill, specialty crops
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