Dear IEDC Members and Partners,
IEDC is pleased to share that this week, the U.S. Congress has made significant steps toward authorizing a new Farm Bill with both chambers announcing new draft measures.
"On behalf of the International Economic Development Council (IEDC) and the thousands of economic development organizations and professionals we serve across the country, I want to thank U.S. Senate Agriculture, Nutrition, and Forestry Committee Chairwoman Stabenow for her work and leadership on the Rural Prosperity and Food Security Act of 2024. This critical legislation would reauthorize many important programs under the U.S. Department of Agriculture and direct much-needed resources to rural communities across the United States. We are especially appreciative of the robust investment in the Rural Development title within the legislation including direct funding for the Rural Partnership Program. This program focuses on providing locally-led investments in rural communities that will build capacity and drive economic development opportunities for rural places and people. We commend this bill and support its passage through committee and the full Senate."
- Nathan Ohle, IEDC President and CEO
We need your help to urge your Members of Congress to support the passage of a long-term Farm Bill.
FARM BILL BACKGROUND
The Farm Bill, particularly the Rural Development Title which includes rural economic development programs and funding, is a top legislative priority of the International Economic Development Council (IEDC) and our members across the country. IEDC supports long-term reauthorization of this critical legislation.
Last authorized for five years in 2018 as the Agriculture Improvement Act of 2018 (P.L. 115-334), the 2018 Farm Bill was a significant piece of bipartisan legislation that authorized $428.3 billion in funding for a broad range of USDA programs important to the economic development field. The 2018 Farm Bill was then extended for a year into 2024. With the current legislation set to expire on September 30, 2024, members of the U.S. Senate and House Agriculture Committees have been working to draft a new, five-year Farm Bill.
PROGRESS IN THE U.S. SENATE: RURAL PROSPERITY AND FOOD SECURITY ACT OF 2024
On May 1, 2024, U.S. Senate Committee on Agriculture, Nutrition and Forestry Chairwoman Debbie Stabenow (D-MI) introduced the “Rural Prosperity and Food Security Act,” a combination of over 100 bipartisan bills that prioritizes farmers, ranchers, and rural communities. Full text of the legislation has not yet been released.
Most importantly for IEDC and our members, the Senate Farm Bill provides a very Robust Rural Development title (Title VI) which provides critical resources and programs for rural communities and economic development activities across the country. According to documents released by the committee, the Senate bill aims to, “improve quality of life for rural families by upgrading childcare and health care facilities, growing the rural economy, and bridging the digital divide. The bill removes paperwork barriers and makes it easier for rural leaders to navigate federal programs.”
The legislation, in the Rural Development title, includes several key provisions important to IEDC and our members. If enacted the bill would:
General Provisions
Provide historic base line funding of $50 million annually for a new Rural Partnership Program designed to equip rural communities to lead public-private partnerships. This new program would help to build capacity and accelerate economic development activities for rural communities. IEDC has been a strong advocate for this new program!
Streamline the application process to access Rural Development programs that support rural jobs, including Rural Cooperative Business Development Grants and Rural Business Development Grants.
Provide new flexibilities in existing USDA Rural Development programs to improve access to affordable childcare as well as rural healthcare access and treatment for children, the elderly and those needing mental and behavioral health services.
Broadband and High-Speed Internet
Expand access to high-speed internet by augmenting the ReConnect Program for the costs of construction, improvement, or acquisition of facilities and equipment for high-speed broadband service in rural areas that provide speeds not less than 100-Mbps/100-Mbps.
Prioritize projects proposing to serve areas with less than 10,000 residents, areas isolated from significant population centers, areas with high low-income populations, areas experiencing outmigration, areas with a need for precision agriculture technology, and applicants paying prevailing wages for construction.
Allow applications from State and local governments, Tribes, corporations, organizations of two or more incorporated areas with an intermunicipal agreement to deliver communication services to residents, and cooperatives.
Rural Partnership Program Grants and Technical Assistance Funding
As mentioned above, the bill would establish a NEW Rural Partnership Program for the USDA to make multiyear grant awards for rural capacity building and to coordinate Federal, nonprofit, and for-profit investment in rural areas through partnerships between two or more entities.
Would allow grant awards to be used to coordinate Federal investments, complete comprehensive predevelopment activities and planning, create public-private partnerships that attract private investment, support eligible operational activities, provide capital to existing or new projects, support regional initiatives, and address economic recovery.
Would prioritize projects that serve rural areas with significant workforce changes or changes in major employers or that have historically received minimal Federal funding, as well as economically distressed rural areas.
Would waive 25 percent match requirement for economically distressed communities.
Establish a NEW competitive technical assistance grant program to advise and assist rural community organizations to support capacity building and economic development, including activities such as grant writing and grant management, training and supporting local staff, project development and predevelopment activities, and developing public-private partnerships.
Would allow USDA to prioritize projects that serve a nonmetropolitan area with a high poverty level or that serve an Indian Tribe.
Water and Wastewater Infrastructure
Establish a NEW competitive technical assistance grant program to advise and assist rural community organizations to support capacity building and economic development, including activities such as grant writing and grant management, training and supporting local staff, project development and predevelopment activities, and developing public-private partnerships.
Provide mandatory funding for water and essential community facilities to address emerging contaminants like polyfluorinated substances (PFAS). In addition, the bill would authorize USDA to provide financial or technical assistance under a rural water or wastewater program to eligible associations for the purpose of providing water and wastewater services to residents in a financially distressed rural area that is contiguous to or in the locality of the service area of the eligible association and that is unable provide water and wastewater services to its residents.
Permit USDA to make grants, zero or one percent interest loans or to modify existing rural water and wastewater program loans for the purpose of improving or constructing public utilities to maintain or enhance public health, safety, or affordability.
Allow USDA to waive the 25 percent match requirement for Water, Waste Disposal, and Wastewater Facility Grants predevelopment and development costs in areas with demonstrated need, increases the maximum amount of financing to eligible entities for predevelopment and short-term costs from $200,000 to $500,000 and increase the authorization of appropriations to $30 million through fiscal year 2029.
Although exact timing of advancement of this legislation is unknown, Chairwoman Stabenow is now in the process of scheduling a mark-up for the bill in committee.
PROGRESS IN THE U.S. HOUSE OF REPRESENTATIVES: THE 2024 FARM BILL
Also on May 1, 2024, the House Committee on Agriculture Chairman Glenn Thompson (R-PA) released a title-by-title brief overview of the 2024 Farm Bill. Full text of the legislation has not yet been released.
Although the House version will most likely significantly differ from the Senate bill, there seems to be alignment on the importance of the Rural Development title which, according to a summary released by Chairman Thompson, aims to:
Strengthen broadband connectivity to rural communities.
Address existing workforce challenges within rural communities to effectively meet their needs.
Encourage private capital investments in rural communities.
Streamline the permitting process for Rural Development projects.
Chairman Thompson has scheduled a committee mark-up for the 2024 Farm Bill on May 23, 2024.
YOUR ADVOCACY
Urge your Members of Congress in both chambers to support and pass a long-term Farm Bill with a robust Rural Development title.