Terry Brunner
On June 3, the Obama Administration held a National Rural Summit in Hillsboro, Missouri to discuss the future of our nation’s rural communities. The summit provided the opportunity for us to reflect on where we have been and where we are going in our efforts to strengthen rural America.
I’ve served as the United States Department of Agriculture (USDA) Rural Development state director for New Mexico for nine months. In that short time, I’ve traveled to communities throughout New Mexico to understand the impact and response of rural communities to the recent economic downturn. It became evident to me very quickly that the communities that work together in partnership for their mutual success are more likely than others to succeed in their efforts to create sustainability and prosperity.
Not surprisingly, these were some of the same conclusions drawn from the recent rural summit.
Several announcements at last week’s summit underscore USDA’s commitment to partner with rural communities to assist with rural development. USDA and the U.S. Small Business Administration (SBA) signed a memorandum of understanding that outlines methods by which the two federal agencies can collaborate to assist rural small businesses. It is common sense for both agencies to team up to make rural businesses aware of the resources available through the agencies.
A sample of the opportunities
USDA also announced a new Rural Microentreprener Assistance Program. Through this program, local organizations can create a microlending program to provide loans of $50,000 or less to rural start-up business ventures. Most rural businesses aren’t in the market for a $2 million loan but they sure could use a small start-up and expansion loan. At a time when traditional lenders are more restrictive with credit, a program like ours can make a new source of credit available to rural businesses.
Recently the USDA announced $22.5 million in funding for recipients of our Value-Added Producer Grant program. Farmers, ranchers and small businesses that modify a commodity for sale can qualify for grants of up to $100,000 for business development or marketing assistance and up to $300,000 in grant funds for capitol purchases for the development of their product.
This is just a small sample of the USDA opportunities that exist for rural communities. At USDA Rural Development we have a long history of working with rural communities on projects that build and maintain crucial rural infrastructure such as water systems, wastewater projects, community facilities and housing. These critical infrastructure projects create the environment and resources that are needed for rural economic and community development.
As we look to the future of rural America, the discussion often turns to how we can create and sustain jobs in this rapidly changing economic environment. USDA will continue our strong investments in the agriculture community to encourage stability and the expansion of both international and national markets for their products. We are also expanding our focus to look at the prospect of generating renewable energy jobs in rural New Mexico – the logical location for solar, wind, bioenergy and other renewable energy projects.
USDA provided a $54.5 million loan guarantee to Sapphire Energy to create a bio-diesel algae plant in Columbus, N.M. The success of that plant could have a transformative effect on a small town like Columbus.
Charting a better future
All told, USDA Rural Development-New Mexico oversees a portfolio of more than $800 million. In fiscal year 2009, New Mexico Rural Development provided $490 Million in grants, loans and loan guarantees throughout the State of New Mexico. We anticipate a similar level of spending in FY ’10 as we aggressively pursue resources for rural communities.
Americans treasure the values and the ethics that have long defined rural America. We owe it to those communities and ourselves to help rural communities chart a better future for their families. The discussion that took place at the recent National Rural Summit ought to be an ongoing discussion at the forefront of our American dialogue. We at USDA are prepared to deploy the resources and develop the partnerships needed in our rural communities to help secure their future for years to come.
Brunner was appointed by President Obama on Sept. 3 to serve as USDA Rural Development state director for New Mexico.