USDA providing $7 million
for rural co-op development
SDA Rural Development
has awarded nearly $7.3
million in grants to
cooperative development
centers in 22 states.
The funds will be used to increase
economic opportunities in rural
areas by assisting farmers and rural
businesses in developing cooperative
ventures. “Cooperatives allow
individuals and small businesses to
pool their resources, achieve
economies of scale, and develop
more sophisticated technical and
management skills,” Agriculture
Secretary Mike Johanns said in
announcing the grants. “These
investments will help farmers, ranchers
and rural small businesses obtain the
technical support they need to expand
their businesses.”
The Rural Cooperative Development
Grant Program awards funds on
a competitive basis to nonprofit cooperative
development centers, many
associated with institutions of higher
education. These centers provide rural
residents with education and technical
assistance in areas of cooperative start
ups, marketing and management, as
well as other self-help tools.
In Mississippi, for example, the
Mississippi Association of Cooperatives
will receive funds to help 15-20 cooperatives
develop and strengthen services
to aid limited-resource producers
and aid other rural residents in developing
successful cooperatives. The services
provided will include early-stage
technical assistance, director training,
new product evaluation and identification
of alternative funding sources.
Another recipient, the New
Hampshire Community Loan Fund,
has provided technical assistance and
access to capital to the owners of manufactured
housing and created a
statewide system that enhances cooperative
ownership as a solution to the
problems of owning a home on rented
land.
