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USDA Announces Support for Rural Cooperative Businesses and Organizations

Name
Tammi Schone
City
Huron
Release Date

Agriculture Secretary Tom Vilsack today announced that USDA is awarding 29 grants totaling $5.8 million to help rural cooperatives create jobs and support business expansion. The funds are being provided through the Rural Cooperative Development Grant (RCDG) program, which helps fund non-profit groups, such as rural cooperative development centers and higher education institutions.
 
“America’s rural communities have incredible potential to create jobs and expand economic opportunities,” Vilsack said. “Many rural businesses and organizations are succeeding under the cooperative business model, and with access to additional resources, they can boost job creation and create an environment where more products are made in rural America. The funding USDA is announcing today will provide the critical training and technical assistance rural cooperatives and non-profit groups need to help strengthen America’s ‘Main Street’ businesses.”

Development centers can use RCDG funds for feasibility studies, strategic planning, leadership and operations training, and business plan development. Recipients are required to contribute matching funds that equal 25 percent of total project costs.

Sam Rikkers, Administrator of USDA’s Rural Business-Cooperative Service, announced the 29 awardees on Vilsack’s behalf during a visit today to the Ohio Cooperative Development Center (OCDC) at Ohio State University’s South Centers campus in Piketon.

In South Dakota, the Value Added Ag Development Center, Inc. is receiving a $200,000 grant to provide technical assistance and resources to cooperative/mutually owned businesses in rural areas of South Dakota.  The Center will deliver customized technical assistance with “hands on” approach to create value-added concepts in networking, feasibility and marketing assessment, business development planning, financial assessments, research and education. 

Today’s announcement is part of USDA’s observance of National Cooperative Month. Each year in October, the Department highlights the economic impact and innovation of cooperative businesses, particularly in rural communities.

Projects in 22 states are receiving RCDG funding. Funding for each project announced today is contingent upon the recipient meeting the terms of the grant agreement.

Several of the grants support technical assistance to strengthen local and regional food systems. Over the course of the Obama Administration, USDA has invested close to $1 billion in 40,000 local food-related projects on farms and in communities across the country. USDA’s Know Your Farmer, Know Your Food (KYF2) Initiative coordinates the Department’s work to develop strong local and regional food systems. Please view the KYF2 website and use the KYF2 Compass to locate USDA investments in your community. More information on how USDA investments are connecting producers with consumers and expanding rural economic opportunities is available in Chapter IV of USDA Results on Medium.
 
USDA has provided $50.5 million for 257 cooperative grants for projects nationwide since the start of the Obama Administration. This funding has helped more than 4,700 businesses.

Since 2009, USDA Rural Development (@USDARD) has invested nearly $13 billion to start or expand nearly 112,000 rural businesses; helped bring high-speed Internet access to nearly 6 million rural residents and businesses; helped 1.1 million rural residents buy homes; and funded nearly 9,200 community facilities such as schools, public safety and health care facilities. USDA also has invested $31.3 billion in 963 electric projects that have financed more than 185,000 miles of transmission and distribution lines serving 4.6 million rural residents. For more information, visit www.usda.gov/results.