USDA Awards Loans (None in NY) to Create Jobs, Spur Economic Development

Five awards were awarded Friday Jan. 23 to expand access to credit for rural businesses, particularly small businesses in poor and underserved areas.

USDA Rural Development is providing a total of $2.55 million in loans to five nonprofit groups through the Intermediary Relending Program (IRP). Under the IRP program, USDA provides loans to local organizations so they can create revolving loan funds for businesses.

Those receiving money are:

Mississippi's North Central Planning and Development District, $600,000, help reduce poverty and address economic development and infrastructure issues on a multi-jurisdictional basis.
Iowa, Newton Development Corporation, $200,000
New Hampshire, Coastal Economic Development Corporation, $500,000
Missouri, Missouri Agricultural and Small Business Development Authority, $500,000
South Dakota, Four Bands Community Fund, $750,000

Why New York Needs a Farm Bill Now

This op-ed piece was written by the New York state directors of USDA Farm Service Agency and USDA Rural Development:


This fall, Congress has an important opportunity to create jobs and grow the economy by passing a long-term, comprehensive Food, Farm and Jobs Bill. The Farm Bill impacts every American, every day by providing a wide range of programs that strengthen our nation.

The Farm Bill is crucial to maintaining a strong agriculture sector and an abundant food supply that benefits all Americans. Over the past two years, producers have faced a multitude of disasters – from drought, to flooding, to blossom-killing or late spring freezes.  

These events demonstrate how important the safety net is to keeping producers going strong. Under the 2008 Farm Bill, the Farm Service Agency (FSA) was able to provide $4.3 million dollars in disaster assistance to New York farmers using Farm Bill programs.

A new Food, Farm and Jobs Bill would provide a strong crop insurance program, reauthorize the now-expired disaster assistance programs, and provide retroactive assistance for livestock producers. By reforming the safety net to eliminate the direct payment program – which pays producers whether or not they are in need of assistance – the Food, Farm and Jobs Bill would also save billions of dollars in the next decade.

Farm Service Agency State Executive Director James Barber said “A successful Farm Bill helps safeguard our food supply and provide stability to the rural economy by providing stability to the agricultural community. Agriculture is the economic engine that drives the rural economy; and farmers in NY would greatly benefit from the Farm Food and Jobs Bill that recognizes the importance of both commodity and non-commodity crops and supports the efforts of those embarking on a career in agriculture.”


A new Food, Farm and Jobs Bill would help Main Street businesses grow and hire more, strengthen infrastructure in our small towns and provide new opportunities in natural resource based businesses and renewable energy. 

For example, in New York, USDA has provided more than 300 projects totaling more than $16 million since 2009 to help farmers, ranchers and rural businesses save energy through the Rural Energy for America Program. This and many other efforts could continue with a new Farm Bill.
 

“Without question, passage of this bill would be an invaluable investment in our state,” said Lee Telega, USDA Rural Development State Director. “We would see communities benefit through continued support for rural educational, housing, public safety and infrastructure projects. We would also see funding for continued use in renewable energy sectors, rural broadband expansion, access and adoption as well as economic opportunities for entrepreneurs and small business owners. 

"Rural Development remains committed to assisting our rural partners wherever and however we can. We work collaboratively with our colleagues at the state and local level to find those vital linkages to maximize resources to make important projects happen,” he said.


The Supplemental Nutrition Assistance Program (SNAP) is a vital component of our nation’s poverty safety net. Last year more than $70 billion assisted with the food bills of low income families and individuals, veterans, seniors and children nationwide. In 2013, over 3 million New Yorkers relied on and received this critical nutrition assistance. 

The $5 billion of SNAP assistance that NY received also serves as an economic stimulus -- if more food is being purchased, more food has to be stocked, shelved, packaged, processed and trucked from farm to market. SNAP is a program that is important not only to people, but to states and certainly the country as a whole.


A new Farm Bill would enable USDA to continue our work with more than 500,000 producers and landowners throughout the nation to conserve the soil and water. It would undertake new strategies to improve agricultural research, and it would ensure an abundant, safe food supply. 

In addition, it would allow USDA to continue export promotion efforts that have led to the best five-year period in agricultural trade in American history. Foreign markets are a new frontier for some of our NY producers.  A new Farm Bill will provide FSA and RD with the tools to extend additional farm and food business credit in New York to meet the growing worldwide demand for safe, nutrition US-produced food.
 
All of these efforts strengthen our nation. A new Food, Farm and Jobs Bill would continue the job growth we’ve seen in recent years and help grow New York’s rural economy. That’s why President Obama has identified passage of a new Farm Bill as one of his top three legislative priorities this fall.
 
This is a prime opportunity to give America’s farmers, ranchers and producers the certainty they need about the next five years of U.S. farm policy, while investing in the rural communities that stand at the heart of our values.

The Farm Bill has stood as a model of bipartisan consensus for decades and it is high time that both Democrats and Republicans come to a compromise on this new Farm Bill.  It is our hope that Senate and House conferees will reach a consensus quickly and move a Farm Bill forward as soon as possible.

To learn more about the USDA Rural Development or Farm Service Agency available programs, funding or eligibility criteria log on to: http://www.fsa.usda.gov/ny or http://www.rurdev.usda.gov/nyhome. Or contact us by phone or E-mail at our New York State Office, located in Syracuse, NY at: Farm Service Agency 477-6300 or Rural Development 477-6400.


James Barber                         
State Executive Director                                                                             
USDA NY Farm Service Agency                                                                
james.barber@ny.usda.gov   


Lee Telega
State Director - NY
USDA Rural Development                  
Stanley.Telega@ny.usda.gov

USDA Provides Money for Rural Job Creation

News from the USDA:

The U.S. Department of Agriculture recently announced it is seeking applications for grants that will be awarded to organizations to help rural businesses create jobs and spur economic development.

USDA is making $5.6 million available through the Rural Community Development Initiative (RCDI), a program that generates economic activity in rural areas. 


Qualified intermediary organizations receiving the grants will provide financial and technical assistance to recipients to develop their capacity to undertake housing, community facilities, or community and economic development projects. Recipients will be non-profit organizations, low income rural communities, or federally recognized tribes. Intermediary organizations must provide matching funds at least equal to the RCDI grant. 

Funds are not directly provided to business recipients by USDA under the program.
The deadline for submitting RCDI applications is Nov. 12. Applications must be submitted to the USDA Rural Development state office where the applicant's headquarters are located.

A list of these offices is available on the USDA Rural Development website. For more information, see the Aug. 14 Federal Register at www.gpo.gov/fdsys/pkg/FR-2013-08-14/pdf/2013-19773.pdf.

Energy Efficiency and the Farm Bill

This week's column by Agriculture Secretary Thomas Vilsack:

This week, the U.S. Department of Agriculture announced more than 630 new projects across the country under the Rural Energy for America Program (REAP). 

These new projects will help producers and businesses boost their bottom line, while increasing America’s energy security and protecting our environment.

Energy efficiency programs are a key part of the President’s overall plan to mitigate the impacts of a changing climate, while building our renewable energy capacity to support an all-of-the-above approach to America’s energy future.

Under the Obama Administration, USDA has used this program to support more than 7,000 energy efficiency projects. Many of these provided assistance on small and medium-sized farm and ranches, or in rural businesses.

For example, USDA is providing a grant to a producer in Oklahoma who will leverage significant outside investment to install two 100kW wind turbines.

A grant in Washington will enable an orchard owner to install a solar hot water washing tank to clean apples for market. And in Wisconsin, REAP will help a producer install an anaerobic digester that will create more than 4.8 million kWh of electricity a year while boosting environmental quality.

This program is a very good example of why Congress must achieve passage of a comprehensive, multi-year Food, Farm and Jobs Bill as soon as possible.

In January, Congress provided an extension of some 2008 Farm Bill programs when there was no Congressional passage of a comprehensive Food, Farm and Jobs Bill.  Now, in just a few weeks, that extension will expire – once again leaving rural America without access to Farm Bill programs.

USDA relies on the Farm Bill to carry out the Rural Energy for America Program and many other important efforts. Without a comprehensive Food, Farm and Jobs Bill, rural America will be without energy efficiency programs. America’s farmers and ranchers will be without a strong safety net and important conservation programs.

We will lack trade programs to promote U.S. products, and the ability to invest in strong agricultural research. These are just a few of many examples.

This is too important for Congress to kick the can down the road with another short-term extension. We need the certainty of a comprehensive, long-term Food, Farm and Jobs Bill. USDA and folks across rural America are counting on Congress to advance this legislation as soon as possible.

Tioga County to Receive Grant for Bioenergy Marketing Initiative

News from the USDA:

The U.S. Department of Agriculture on Tuesday announced projects in 17 states and the Commonwealth of Puerto Rico -- including one project in New York -- that will receive loan and grant assistance to create jobs and boost economic development in rural areas.

Tuesday's announcement involves funding provided through three USDA economic development programs: the Intermediary Relending Program, the Rural Economic Development Loan and Grant Program and the Rural Business Opportunity Grant Program.

In New York state, the Tioga County Rural Economic Area Partnership will receive $98,860 through the Rural Business Opportunity Grant Program. The money will be used to support the county's Bioenergy Marketing Initiative.

The total grant money provided by the three USDA programs for these 28 projects is nearly $13 million.

USDA Works to Rebuild US Economy

Here is this week's column by Agriculture Secretary Thomas Vilsack:

This past week, President Obama laid out a vision for America’s economic future.

Since day one, the Obama Administration has been focused on our nation’s economic recovery, and over recent years we’ve seen positive signs of growth.

Businesses have created more than 7 million new jobs during the past 40 months. The housing market is coming back. Led by the tremendous productivity of America’s farmers and ranchers, our nation’s exports are growing.

But we also know that much remains to be done, and there’s no excuse for letting up. The President is squarely focused on building a strong middle class. He is committed to ensuring that every American has the opportunity to secure a good job, a quality education, a dependable place to call home, a secure path to retirement and affordable health care with decent benefits.

Those opportunities are just as important for folks who call rural America home. At the U.S. Department of Agriculture, we have laid out a vision to rebuild the rural economy and create a strong middle class in rural America. In recent years we’ve expanded markets for agriculture and rural business, while laying the groundwork for new growth in the coming generation.

With Washington suffering from too much gridlock today, President Obama pledged that he’ll do everything within his executive power to keep making progress. At USDA we’ll continue our own efforts, building on the record results we’ve achieved in recent years.

Meanwhile we will continue to work with Congress to break the gridlock and accomplish big things. For rural America, Congress must act as soon as possible to pass a comprehensive Food, Farm and Jobs Bill, which is crucial for USDA’s efforts to grow the rural economy and provide new income in rural communities.

Additionally, by fixing America’s broken immigration system, Congress can strengthen American agriculture, grow the rural economy, and create a common-sense system that works for farmers and farm workers alike.

Over the coming months, President Obama will continue to discuss his vision for a strong middle class. He’ll outline steps that can be taken by the administration, by Congress and by other partners to help grow the economy. Folks in our small towns and rural communities can help lead the way on that effort, and USDA will stand with rural America every step of the way.

Deadline Approaches for Small, Socially Disadvantaged Producer Grant Program

This comes from the USDA:

The deadline is in mid-July to apply for USDA help for small, socially disadvantaged agricultural producers in rural areas. 

Funding will be made available through USDA Rural Development's Small, Socially Disadvantaged Producer Grant program. The maximum grant award is $200,000.

The grants assist producers like Frank Taylor who returned home after college and established the Winston County Self-Help Cooperative in Mississippi, a consortium of local farmers that pool their resources to receive training in business development, conservation and health.

The Small Socially Disadvantaged Producer Grant and other USDA business and cooperative development programs have had a significant impact on rural communities. In 2012 alone, they helped almost 10,000 rural small business owners or farmers improve their enterprises. Business and cooperative program funding created or saved an estimated 53,000 rural jobs in 2012.

Eligible applicants include cooperatives, groups of cooperatives, and cooperative development centers where a majority of the governing board or board of directors is comprised of individuals who are members of socially disadvantaged groups.

Small, socially disadvantaged producers include farmers, ranchers, loggers, agricultural harvesters, and fishermen that have averaged $250,000 or less in annual gross sales of agricultural products in the last three years.

Producers will be able to conduct market research, product and/or service improvement, feasibility studies, training, and implement business plans.

The application deadline for Small, Socially Disadvantaged Producer Grants is July 15, 2013 for paper applications and July 10, 2013 for electronic applications. For additional information on how to apply, go to http://www.rurdev.usda.gov/BCP_SSDPG.html.