Rural development is a big part of USDA efforts

By Larry Dreiling

While commodity programs and conservation are important parts of U.S. farm policy, so, too, is rural development.

That message was driven home by Under Secretary of Agriculture for Rural Development Tom Dorr, who was the keynote speaker at a U.S. Department of Agriculture forum on rural development and the 2002 farm bill, held recently in Salina, KS.

Speaking to about 200 economic development leaders, from rural areas in several High Plains states, Dorr said USDA Rural Development is well positioned to provide services, while there is a need for renewal and clarity of vision needed to refocus Rural Development's outreach efforts.

"If we are to be successful, we need to celebrate success," Dorr said. "We must encourage those who take opportunities and risks, and accept the reality of changing economic conditions."

USDA Rural Development encompasses the Rural Utilities Service (once the Rural Electric Administration, but now includes telecommunications and water and sewer services), Rural Business-Cooperative Service, Rural Housing Service and Office of Community Development.

Although only 2 million to 3 million persons directly benefit from USDA commodity and conservation programs, more than 60 million persons benefit from programs administered by and funded through USDA Rural Development, Dorr said.

"Out of 3,200 U.S. counties, 80% of our landmass is rural. In 1910, 960 of those counties were considered dependent on agriculture as the primary source of income," Dorr said. "Now, only 220 counties are considered dependent on agriculture. Local counties, even counties in Kansas, are less dependent on agriculture than they once were.

"That means we must find ways to keep our young people on the land. It is a simple fact of life. We must find ways to increase their opportunities, in our rural communities, and improve their quality of life."

While offering no "silver bullets," Dorr said there must be efforts made to enhance rural areas' ability to compete with cities for talented young people.

"That means we need programs that are highly flexible," Dorr said. "There must be partnering and leveraging efforts made to bring capital formation to our rural areas. When that happens, opportunities will move along.

"It is sort of like what happens in Field of Dreams. If you build it, they will come," he said.

Dorr encouraged the attendees, most of them rural economic development officials, to be imaginative as they can be in development of programs that can make those dreams come true.

"We have to do this ourselves, to bring change to our communities," Dorr said. "We can't wait for things to come to us." To do that, USDA Rural Development will spend about $13 billion through the life of the farm bill on projects ranging from value-added agricultural market development grants to grants for rural firefighters and emergency personnel.

Also attending the forum was Rep. Jerry Moran, R-KS. Dorr thanked Moran for his efforts on behalf of USDA Rural Development. Dorr also thanked fellow GOP Rep. Jim Ryun for becoming "a recent convert" to understanding the needs of rural communities and how Rural Development can help.

Moran, for his part, applauded the role USDA Rural Development played in helping several value-added cooperatives in Kansas receive over $2 million, in market development grants. Some of those grants, which primarily will assist Moran's constituents, include:

--$500,000 to 21st Century Grain Processing, for new working capital to expand their Texas mill.

--$500,000 to Cooperative Grain Services, for working capital to build a soybean processing plant, at Grinnell.

--$290,000 to Western Plains Energy, for start-up costs for a new ethanol plant, near Oakley.

--$218,000 to the American White Wheat Producers' Association, for a feasibility study to turn hard white wheat into heavy bran for breakfast cereals and specialty breads.

These grants will be augmented by loans to businesses, local governments and individuals. Some of these loans could be as small as to help a single parent afford a starter home, in a rural area.

"We have a $75 billion bank at hand," Dorr said. "That is about the fifth largest in country, if it was a commercial bank. It really is more like a venture capitalist that doesn't take equity in money, but it puts that equity into people and into small towns."

Moran, meanwhile, added USDA Rural Development efforts range from value-added grants to bringing broadband Internet services to rural areas, to assisting farmers and ranchers in purchasing renewable energy systems.

"We have a fight on our hands," he said. "It is clear we need economic opportunity in rural Kansas and rural America. The new farm bill has an awfully important part to play in our rural development efforts. Hopefully, the Rural Development title can help us do more, even though this can't help us replace state or local monies to assist in economic development.

"Our real future lies not just on money, but on local leadership and on education. Do we have leaders in our rural communities? Yes, but they are mostly in their 70s. We need to find younger people, in the communities, to carry on the fight for our long-term survival. That also is important and we can target those younger people for leadership now and in the future," Moran said.

Date: 12/31/02