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USDA Rural Development Invests $80,000 in Southwestern Kelp Farms Expansion in Rural Alaska

Name
Nick Boris
Phone
City
Palmer
Release Date

KODIAK, Alaska, Nov.8, 2024 – U.S. Department of Agriculture (USDA) Rural Development State Director in Alaska Julia Hnilicka announced today that the Agency is investing in an $80,000 grant to expand kelp farming in Southeast Alaska. The grant is intended to spur economic development support small businesses, boost infrastructure, and create jobs. 

“In expanding Alaska’s kelp farming, we’re not just investing in infrastructure and small business growth; we’re supporting sustainable economic development that strengthens our rural communities,” said Hnilicka. “Rural Development is committed to empowering Alaska’s small businesses across all industries.”

As part of these efforts, the Rural Partners Network (RPN) is actively engaging in community efforts within Kodiak to connect, collaborate, and amplify the funding opportunities available to underserved rural communities. 

“The community of Kodiak is part of the USDA Rural Development’s RPN in Alaska which provides place-based approaches to funding priorities in rural communities,” said Emily Marr, RPN Community Liaison in the Southcoast Alaska Community Network. 

Rural Business Development Grant Recipient

The Rural Business Development Grant (RBDG) program is designed to provide technical assistance and training for small businesses.

The Kodiak Economic Development Corporation (KEDC) received $80,000 through the RBFG program to support a business plan designed for the expansion of 13 kelp farms in Southwestern Alaska. The funding came through the Rural Business Development Grants program. This project will bolster mariculture production and support economic self-sufficiency. Based in Kodiak, KEDC is a nonprofit organization committed to strengthening Kodiak’s economy. The project seeks to build a strong, sustainable community that can serve as a model similar rural development.

"Kodiak's mariculture farmers are at the forefront of this initiative, driving new areas of economic potential for our community," said Karl Hertz, KEDC board president. "These initiatives have the potential to expand fishing portfolios, create well-paying jobs, and foster economic resilience, ultimately serving as a model for other rural communities seeking to strengthen their economies through innovation and collaboration."

USDA Rural Development recognizes the crucial role of initiatives like these in strengthening rural economies. The project has the potential to create lasting impact by fostering job creation, business growth, and sustainable development.

"By encouraging a supportive environment for mariculture, we hope to see growth in new businesses, the creation of well-paying jobs, and a stronger foundation for economic independence,” said Melissa Schoenwether, KEDC executive director and project lead. “Our goal is to make Kodiak a leader in mariculture, cultivating a vibrant community that can inspire sustainable development across rural Alaska."

Background

The USDA Rural Development RBDG program supports economic growth and job creation in rural communities. Eligible applicants, including public bodies, Tribes, and nonprofits serving rural communities, can apply for funding in two categories: Enterprise grants, which support small business projects, and Opportunity grants, which focus on broader community and economic development initiatives. 

Contact USDA Rural Development

USDA Rural Development has four offices across the state to serve the nearly 500,000 Alaskans in rural communities. Offices are in Palmer, Fairbanks, Sitka, and Kenai. 

To learn more about investment resources for rural areas in Alaska, call (907) 761-7705 or visit https://www.rd.usda.gov/ak. If you’d like to subscribe to USDA Rural Development updates, visit our GovDelivery subscriber page.

USDA Rural Development provides loans and grants to help expand economic opportunities, create jobs and improve the quality of life for millions of Americans in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural, Tribal and high-poverty areas. 

To subscribe to USDA Rural Development updates, visit GovDelivery Subscriber Page.

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USDA is an equal opportunity provider, employer, and lender.