Susan McAvoy (202) 720-4623
susan.mcavoy@usda.gov
Steve Thompson (202) 720-2446
sathomps@rdmail.rural.usda.gov

WASHINGTON, Aug. 3, 2000--As part of the continuing effort to ensure that rural Americans benefit in the nation's strong economy, Agriculture Secretary Dan Glickman today announced that USDA will award $5.7 million in grants, $4 million of which will go to develop new member-owned rural cooperatives. The grants will help 21 nonprofit corporations assist farmers and other rural residents in organizing new cooperatives.

"Cooperatives play a key role in the rural economy," said Glickman. "They enable farmers to compete more successfully in today's difficult markets. Cooperatives can open doors of opportunity and help preserve the family farm in the 21st century."

The funds will be used to finance feasibility studies, business development plans, market analysis studies and product development plans for new cooperatives. Of the total, $1.5 million is earmarked for programs benefitting small, minority producers. For more information on how USDA helps rural cooperatives, call (202) 720-7558, or visit the website at: www.rurdev.usda.gov/rbs/coops/csdir.htm.

Glickman also announced today more than $1.7 million in grants under the Rural Business Enterprise Grant and Rural Business Opportunity Grant programs to organizations in 24 states to help finance the development of small and emerging private businesses in rural areas. The grants will be boosted by an additional $3.2 million in funding from other sources.

Not all of rural America is sharing equally in the current prosperity," said Under Secretary for Rural Development Jill Long Thompson. "These grants will help stimulate the growth of new business in areas that need it most. And by leveraging our funds with money from other sources, we're getting more benefit for less."

Attached is a list of the co-op and rural business grants awarded.

#

Return to Rural Development News and Information Room.