2007 Farm Bill: Rural Development Issues

1. 2007 Farm Bill:Rural Development Issues Dr. Mark A. Edelman, Director Community Vitality Center Professor of Economics and Extension Economist Iowa State University Extension Farm Bill Web Cast Series June 15, 2007

2. Agenda Three Topics • Iowa Farmer Preferences on 2007 Farm Bill Issues –Rural Develop; Res & Ext • Rural Development Title: Comparing 2002, House Plan, and Likely Senate Plan • Positioning for the new Rural Collaboration Investment Program (RCIP)

3. Iowa Survey • Farm Foundation and NPPEC Task Force • Iowa – one of 27 states participating • NASS IA sent to 3000 Iowa farm operators • 736 responses for 24.5 % response • Stratified random sample 2002 Ag Census • Small $1,000-<$100,000 in sales IA-67.8% • Med. $100,000-<$250,000 in sales IA-17.0% • Large $250,000 or more in sales IA-15.3%

4. 15. Rural Development Preferences 1-least important 2-less importance 3-neutral 4-important 5-most important

5. 16. Research and Extension Funding • Majority 56 -61% favor continuing current mix of formula and competitive funding • Less than 10 percent favor elimination • 15-22% say increase formula funds • 12-15% say shift to competitive funds

6. House AG Committee Proposal Rural Development Title House Bill: FY08–12 • Rural Water and Waste Water $55 mil/yr $275 mil • Emergency Water Assistance $35mil/yr $175 mil • Rural Nonprofit Well Users Assistance $10 mil/yr $50 mil • Rural Community Broadband Connect $25 mil/yr $125 mil • Rural Firefighters and EMTs Assistance $30 mil/yr $150 mil • Rural Healthcare Facilities $30 mil/yr $150mil • Value Added Agriculture Grants $40 mil/yr $200 mil • Rural Business Opportunity Grants $15 mil/yr $75 mil • Rural Entrepreneur & Micro-enterprise $20 mil/yr $100 mil • Rural Cooperative Development Grants $50 mil/yr $250 mil • Rural Strategic Investment Program $25 mil

7. Senate Committee Proposal (Not Available Yet) Rural Development Title Senate Bill: 2002 FY08–12 • Rural Water and Waste Water Backlog $360 mil $500 mil Increase from 40 to 60 grants in Iowa per year • Rural Broadband $100 mil $200 mil • Community Facilities and CC Healthcare $375 mil • Value Added Agriculture Grants $100 mil $200 mil $40 mil per year with added local food emphasis • Rural Entrepreneur & Micro-enterprise $0 $100 mil $20 mil per year • Rural Venture Capital 1 project $250 mil • Rural Collaboration Investment Program ?

8. Rural Collaboration Incentive Program (RCIP) • Self Selected Regions with min 25k pop • Must include public and private sector leaders • Must Address: • Bus Development • Environmental Balance • Leadership for Youth • Quality of Life • Apply to National Board • Planning Grants - up to $300k for 3 years

9. RCIP Cont • If Plan Accepted by National Board the Qualify for $2 to $10 multi-year grant • Leverage funds to address mandatory areas as well as descretionary areas including: Transportation, Education, Marketing, Venture Capital, Housing, Philanthrophy, Technical Assistance, Cultural Heritage, etc.

10. CVC Web Site: www.cvcia.org 2007 Farm Bill Issues and Resources • Iowa Farmer Preferences on 2007 Farm Bill Issues (PDF file) • The 2007 Farm Bill: U.S. Producer Preferences, 2006 • USDA 2007 Farm Bill Page • Senate Committee on Agriculture, Nutrition and Forestry • House Agriculture Committee Policy Centers specializing in Farm Bill Issues Analysis • CARD (Iowa State University) • Agriculture and Food Policy Center (Texas A&M) • Agricultural Policy Analysis Center (University of Tennessee) • Food and Agricultural Policy Research Institute (Missouri) • Rural Policy Research Institute (Missouri) • Farm Foundation (Chicago) Extension Public Policy Education Principles • Public Policy Education by Richard Barrows (PDF file)