Last month the House and Senate passed the Fiscal Year 2010 Agriculture Appropriations bill, which includes increased funding for two important rural development programs and two important credit programs. These are the Value Added Producer Grant Program and the Rural Microentrepreneur Assistance Program.

The Value Added Producer Grant Program, a competitive grant program to help farmers and ranchers move into value-added agricultural enterprises, received a small bump in funding, taking it from 18.9 million to 20.4 million. The program is currently accepting proposals with a due date of Nov. 30. You can find a fact sheet and information here or by contacting the Center for Rural Affairs office in Lyons.

Funding for the new Rural Microentrepreneur Assistance Program (RMAP) was increased by $5 million. When this program is launched early next year, roughly $13 million will be available ($4 million not spent in 2009, plus $4 million mandatory funds for 2010, plus the $5 million added in the appropriations bill). This program will offer competitive grants to organizations that provide training, technical assistance and/or make small loans to new and existing rural small businesses.

The increase was made possible first and foremost by Secretary of Agriculture Tom Vilsack and Nebraska Senator Ben Nelson. The secretary got the president to ask for more money for the program, and the senator, who originally sponsored the program in the farm bill, pressed Congress to follow through. Their efforts drew vital support from Wisconsin Senator Herb Kohl, Kansas Senator Sam Brownback, and South Dakota Senator Tim Johnson.

The appropriations bill also includes increased funding for direct and guaranteed farm ownership loans due to increased demand for government-assisted credit brought on by the current financial crisis.

We worked early on to try and get the Beginning Farmer and Rancher Individual Development Account Pilot Program funded, but to no avail. It was included in the president’s budget but didn’t go any further this round.

This is a matched savings account program that would enable up to 4,000 new farmers and ranchers to start or expand their operations, while also providing financial education to those agricultural entrepreneurs. We will work to gain support for this important provision in the Fiscal Year 2011 appropriations debate.

For the funding increases we did achieve, we want say thanks to our grassroots supporters who responded to our action alerts and called their members of Congress. Your efforts truly make all the difference.

Contact: Traci Bruckner, tracib@cfra.org or 402.687.2103 x 1016 for more information.