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USDA Announces Support for Rural Cooperative Businesses and Organizations

Name
Nikki Gillespie
City
ST. PAUL
Release Date

USDA Rural Development State Director Colleen Landkamer today announced four grants to assist 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.

   “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,” Landkamer said. “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.

   Agricultural Utilization Research Institute (AURI) is receiving a $200,000 grant to provide technical assistance to cooperatives and mutually owned business in the areas of local foods marketing and distribution, co-product utilization, bio-based product development, feed processing, food processing and sustainable crop development. AURI helps develop new uses for agricultural products through science and technology, partnering with businesses and entrepreneurs to bring ideas to reality.

   The Latino Economic Development Center (LEDC), a membership-based nonprofit, strives to improve the landscape for underserved populations throughout Minnesota. LEDC is receiving a $200,000 grant to provide technical assistance to help co-ops expand their production capacity and integrate cooperatives into a comprehensive production and distribution system; and provide technical assistance on cooperative developments with minority and immigrant farmer groups.

   At Northcountry Cooperative Foundation (NCF), members seek to work with people to build organizations that are enduring and co-ops that serve generation after generation of member-owners. NCF is receiving a $200,000 grant to provide technical assistance and training for housing, food and worker cooperatives, and community outreach and youth engagement programs.

   Food Co-op Initiative Food Co-op is paving “the way for New Food Co-op Excellence, leading to better fed, healthier communities with local control and connections” and will receive a $200,000 grant to provide technical assistance to the boards and steering committees of rural startup food co-ops and co-op developers.

   The RCDG program is one of several programs in support of USDA’s Know Your Farmer, Know Your Food (KYF2) Initiative, which coordinates the Department’s work to develop strong local and regional food systems. Since 2009, USDA has invested close to $1 billion in 40,000 local food-related projects on farms and in communities across the country.  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.

   Since 2009, USDA Rural Development has invested nearly $13 billion to start or expand nearly 112,000 rural businesses nationwide, including nearly $265 million in more than 1,300 rural small businesses and agricultural producers throughout Minnesota. For more information on USDA programs, visit www.rd.usda.gov/mn and contact your local area office.