Advocacy

House Appropriations Committee rejects proposed cuts to Rural Cooperative Development Grant program

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Between 2008 and 2017, cooperative development centers nationwide used RCDG to generate or save nearly 15,000 jobs and incorporate over 1,000 businesses, including Yolo Eco-Clean Cooperative in California. [photo: Yolo Eco-Clean Cooperative]
The House Appropriations Committee passed a Fiscal Year 2020 funding bill for Agriculture, Rural Development and Related Agencies on Tuesday that provides $3.9 billion for the U.S. Department of Agriculture (USDA) Rural Development programs including infrastructure, broadband, housing and cooperative development.

Specifically, the bill provides $5.8 million for the Rural Cooperative Development Grant (RCDG) program, rejecting the Administration’s proposal to eliminate funding and maintaining Congressional funding levels from Fiscal Year 2019. RCDG is a competitive grants program administered by the USDA and awarded to cooperative development centers working in rural communities nationwide. These funds are used to assist individuals or businesses in the startup, expansion or operational improvement of rural cooperative enterprises.

In addition, grants for cooperative agreements for appropriate technology transfers for rural areas (ATTRA), value-added agricultural product market development, and Agriculture Innovation Centers each received small increases.

The bill also includes report language requested by NCBA CLUSA, demonstrating the Committee’s support for cooperative businesses. “The Committee recognizes the important role that cooperatives play in the nation’s rural economy and the continued need to fund established and successful development centers throughout the country,” the bill states.

Read a summary of the bill here.

The bill now awaits action by the full House of Representatives.

The Senate will draft its own version of a Fiscal Year 2020 funding bill for the USDA. In April, Sen. Tina Smith (D-MN) led a letter to the Senate Appropriations Committee supporting an increase in RCDG funding. Sen. Smith was joined by Sens. Amy Klobuchar (D-MN), Ron Wyden (D-OR), Tammy Baldwin (D-WI), Mazie Hirono (D-HI), Jon Tester (D-MT), Kirsten Gillibrand (D-NY) and Richard Durbin (D-IL).

Between 2008 and 2017, cooperative development centers nationwide used RCDG funds to generate or save nearly 15,000 jobs, incorporate over 1,000 businesses and create more than 4,000 cooperative housing units across rural America.

Between 2008 and 2017, cooperative development centers nationwide used RCDG funds to generate or save nearly 15,000 jobs, incorporate over 1,000 businesses and create more than 4,000 cooperative housing units across rural America.

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