Andy Solomon, (202) 720-4623
andy.solomon@usda.gov
Dan Campbell, (202) 720-6483
dan.campbell@usda.gov
CLINTON HIGHLIGHTS SUCCESS OF COOPERATIVES IN PROVIDING JOBS AND OPPORTUNITY IN RURAL AMERICA
HERMITAGE, ARK., Nov. 5, 1999 -- In 1996, a group of 15 farmers with limited resources and land, most on the verge of bankruptcy, formed the Hermitage Tomato Cooperative in this town of less than 700 people. Today, President Bill Clinton and Agriculture Secretary Dan Glickman toured the Hermitage Tomato Cooperative, praised this $4 million per year business, and held it up as a model of economic success in a struggling sector of the nation's rural economy.
The Hermitage Cooperative took off, in part, because of $4 million in loan guarantees from the U.S. Department of Agriculture and a USDA-negotiated agreement for the sale of tomatoes to Burger King.
President Clinton said that this kind of public-private partnership is exactly what his New Markets Initiative is all about. He said the Hermitage Cooperative is proof positive that a few innovative people -- with some help from their government and a commitment from the private sector -- can turn a community around and create a brighter future.
"Before they formed a cooperative and purchased this plant, these Hermitage tomato farmers were tiny fish in a huge sea and their outlook was grim," Glickman said. "Now, their future appears bright as sales are soaring to major customers such as Burger King and national grocery chains."
Clinton also announced a new agreement under which Burger King's purchasing agent will buy up to 3.2 million pounds of cucumbers from the Mississippi Association of Cooperatives, a group of minority-owned cooperatives in the Mississippi Delta.
Glickman said USDA is currently finalizing an additional $5 million in loan guarantees to help the Hermitage Cooperative expand its packing operations, build a convenience store and farm supply outlet, and create more local jobs. Glickman noted that the cooperative is also now experimenting with greenhouse tomatoes, which would enable it to expand its growing season to nine months each year. He said USDA would continue working to encourage businesses to purchase produce from small agricultural cooperatives.
Glickman also announced that the National Bankers Association has signed an agreement with USDA to provide $18 million in credit to qualified, minority-owned businesses and limited resource farmers and ranchers.
USDA's Business and Industry Guaranteed Loan Program will offer $850 million in grants and loans this fiscal year to support the development of new or expanded businesses in rural America. Of these funds, about $150 million are expected to fund rural cooperatives.
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