News Release

USDA CO-OP GRANTS "OPEN DOORS OF RURAL OPPORTUNITY"

WASHINGTON, September 22, 1998 -- Agriculture Secretary Dan Glickman today awarded $1.7 million in grants to develop new member-owned rural cooperatives in 13 states.

"Whether its farmers forming new co-ops to process their crops into value-added products or rural people forming day-care co-ops and credit unions to fill a service void in their communities, cooperatives are often an ideal way for rural Americans to take care of business," Glickman said.

Recipients of the grants from the U.S. Department of Agriculture are cooperative development centers and universities, which in turn are helping to organize new cooperatives. The funds will be used to finance feasibility studies, business development plans, market analysis studies and product development plans for new cooperatives.

"The cooperative concept is very basic: one person alone -- both as a consumer of goods and services and as a producer of goods -- exerts little influence on the marketplace," said Jill Long Thompson, under secretary for rural development. "But when rural people unite in a cooperative, they can open doors of opportunity and conquer problems that seemed insurmountable when they stood alone."

"Agricultural co-ops also help maintain a floor for farm prices, a role which will become increasingly vital as more federal farm safety net programs are eliminated," Glickman added.

The development funding is being provided by the Rural Cooperative Development Grant program of USDA Rural Development.

In addition to the grant program, USDA Rural Development also offers a number of direct services to cooperatives, including technical assistance from experts who help organize new cooperatives and improve the operations of existing cooperatives. USDA also conducts cooperative research and produces a wide array of educational materials to increase public understanding of the cooperative form of business.

For more information on how USDA can help rural cooperatives, call (202) 720-7558.

A list of the grants to be provided follows.

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Media Contact: Jim Brownlee, (202) 720-2091
jim.brownlee@usda.gov
Public Contact: Dan Campbell, (202) 720-6483
dcampbel@rurdev.usda.gov


USDA 1998 Cooperative Development Grants

                                                                   Dollar
State Applicant                   Project                          Amount 
AK    Alaska Village Initiatives  Provide existing and emerging   $148,000
                                  cooperatives with management,
                                  marketing, finance and
                                  operational assistance

AR    Winrock International       Work with the Ozark Highland    $140,000
      Institute for Agricultural  Poultry Producers Cooperative
      Development                 to dispose of chicken waste

CA    The Regents of the          Support existing center         $127,000
      University of California    initiatives in cooperative
                                  development, education and
                                  research

CO    Rocky Mountain Farmers      Continue and expand existing    $124,000
      Union Education and         center's efforts in cooperative
      Charitable Foundation       development

KS    Kansas State University     Develop Kansas Cooperative      $100,000
      Co-op Development           Development Center Education
      Center                      and Assistance Program to
                                  focus on development
                                  education for new-generation
                                  cooperatives

MA    Cooperative Development     Provide cooperative board and   $140,000
      Institute, Inc.             management training and
                                  technical assistance through
                                  Northeast Rural Energy and
                                  Value-Added Cooperative
                                  Development Project

MI    Michigan Alliance of        Develop Rural Cooperative       $113,000
      Co-Ops, Central             Development Center to form
      Michigan University         working relationships between
                                  cooperatives

MS    Mississippi Association     Coordinate cooperative          $110,000
      of  Cooperatives            development activities through
                                  existing Mississippi Center for
                                  Cooperative Development

MT    Intertribal Agriculture     Encourage and assist Native     $135,000
      Council                     Americans in forming
                                  marketing and production
                                  cooperatives through existing
                                  Rural Indian Agriculture
                                  Cooperative Development
                                  Center

ND    North Dakota Association    Develop Dakotas Center for      $128,000
      of Rural Electric Co-ops    Rural Cooperative Business
                                  Development to provide
                                  technical assistance to
                                  developing and existing
                                  cooperatives

NE    Nebraska Community          Develop Nebraska Cooperative    $148,000
      Foundation, Inc.            Development Center to
                                  coordinate technical assistance
 
OH    Ohio State University       Establish Center for            $148,000
                                  Cooperative Development to
                                  foster new cooperatives and
                                  assist existing cooperatives

WI    Cooperative Development     Establish Cooperative           $139,000
      Services Fund, Inc.         Development Services Fund,
                                  Inc., to work to improve
                                  cooperative development
                                  training, outreach and technical
                                  assistance

                                  TOTAL                         $1,700,000

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