WASHINGTON, April 13, 2001 - The U.S. Department of Agriculture today invited preapplications for $4.5 million in grants to encourage the development of new, member-owned cooperatives. The funding is being provided by the Rural Cooperative Development Grant program of USDA Rural Development.

The grants will be awarded on a competitive basis to nonprofit corporations and institutions of higher learning, for use in helping organize new rural business cooperatives. The funds may be used to finance feasibility studies and other "hands-on" technical assistance activities required for successful cooperative development.

Of the $4.5 million, $1.5 million is reserved for efforts assisting small, minority producers whose governing boards or memberships are comprised of at least 75 percent minorities.

"This funding delivers the commitment of the Bush Administration to increase the role cooperatives will play in improving the rural economy and preserving the family farm," said Marlene Elliott, Rural Development State Director for Delaware and Maryland.

The deadline for receipt of preapplications is May 24, 2001. Preapplications for projects that will be headquartered in Delaware or Maryland may be sent to the Rural Development state office at 4607 South DuPont Highway, P.O. Box 400, Camden, DE 19934.

Further information on the program is available from the Delaware/Maryland Rural Development office at (302) 697-4324, or from James E. Haskell, Assistant Deputy Administrator for Cooperative Service, Rural Business-Cooperative Service, (202) 720-8406.

For more information on how USDA can help rural cooperatives, call (202) 720-7558 or visit the USDA Rural Development web site at www.rurdev.usda.