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Lillian SalernoDeputy Under SecretaryRural Development, USDA
FY 16-17: Agency Priority Goal
Increasing Assistance for Rural, Persistent Poverty Communities
Priority Goal
Goal Overview
Currently, 85 percent of our country’s persistent poverty counties are in rural America. More than one third of rural Americans and one in four rural American children live in poverty. Kids growing up in families earning even twice the poverty threshold are nearly three times as likely as other children to have poor health, are more likely to finish two fewer years of school, and earn half as much money in their adult life.
Growing the economy by investing in rural communities and increasing opportunities for families is critical to our Nation’s future. Capacity building is essential in these persistent poverty rural areas. By doing so, it enables these communities to increase its readiness for access to USDA’s grant and loan programs as well as leveraging other resources to fund and implement projects and strategies that will spur economic growth.
Starting in FY2016, USDA Rural Development will implement Farm Bill’s Section 6025 Strategic Economic Development which enables Business & Industry Guaranteed Loan, Rural Business Development Grant, Community Facilities, and Water and Environmental Programs to set aside up to 10% of its appropriated funds for prioritizing projects that implement multi-jurisdictional community economic development plans. In high poverty areas, community planning is a critical step for identifying needs, opportunities, resources, & strategies, building partnerships, and identifying the right processes, structure, and leadership to execute milestones and achieve economic goals. Through USDA’s Stronger Economies Together (SET) Initiative and other federal planning programs, we are delivering training and technical assistance so high poverty rural communities can start or update their community economic development plans, build their local capacity, and have increased opportunity to access Section 6025 and other federal programs. In FY2015, we have 75 SET Regions who are actively developing or updating their community economic development plans, which we aim to increase to a 100 by September 30, 2017. These SET Regions along with other high poverty rural and tribal communities with multi-jurisdictional plans can compete for Section 6025 and have the opportunity to fund and implement their projects in a way that align and in support of the community or the region’s economic development and poverty reduction priorities. As we lay the framework and build the 6025 program, USDA should be able to report by September 30, 2017 number of SET Regions and multi-jurisdictional plans adopted under SET and number of economic development projects supported, implemented, and funded due to 6025 in high poverty communities.
Moreover, the StrikeForce Initiative for Rural Growth and Opportunity was created in 2010 to address specific challenges associated with rural poverty. Since then, USDA teams have collaborated with more than 1,000 community partners and public entities to bring targeted assistance to rural areas experiencing chronic poverty. These efforts have helped create jobs, build homes, feed kids, assist farmers and conserve natural resources in StrikeForce designated states. By September 30, 2017, USDA will increase the funding in StrikeForce areas by 10 percent from the 2009 baseline of $4 billion and leverage $1 billion of outside resources for investment in high poverty areas.
To complement, USDA has also established Poverty Targeting goals for each of its State Office with an overall FY2015 goal of 22% of Rural Development’s program funding to be invested in high poverty rural areas. This ensured that our Strikeforce and other States with persistent poverty are given reasonable priority and that Rural Development invests available program funding in areas that need it the most. And in many cases, other non-federal dollars must be leveraged to sufficiently fund projects that will help build capacity and spur economic growth. Program leveraging is essential, it ensures partnership building and utilization of other capital so high poverty communities can have adequate assets to fully support the well-being of its community members.
And lastly, USDA in partnership with the White House Rural Council have been taking a comprehensive look at how its policies impact the way rural areas develop and how well those places support the people who live there, in all aspects of their lives – education, health, housing, business, energy, and transportation. This “place-based” approach is an effort to help places work better for people. An effective place-based policy requires comprehensive interagency collaboration and investment that can ensure an increased impact of federal dollars and a greater return on federal investments. By concentrating resources, this approach asserts the primacy of place in moving our nation towards more robust social and economic outcomes. In FY2014, President Obama announced the Promise Zones, a place-based initiative. USDA and HUD jointly support the coordination and implementation of the Promise Zone objectives. As of FY2015, there are 13 Promise Zone designees, of which four are Rural and Tribal. USDA leads the application, review, and implementation support (i.e. planning, training and technical assistance, matching their needs with the appropriate financing tools to fund projects, etc.) for these Rural and Tribal designees. By September 30, 2017, there will be two additional Rural and Tribal designees.
Strategies
- Coordinate and target training and technical assistance programs, support multi-jurisdictional economic development plans, and administer Farm Bill’s 6025 requirements. By September 30, 2017, have 85 SET Regions with at least 50% of them having a fully adopted community economic development multi-jurisdictional plans. Also, number of economic development projects supported, implemented, and funded due to 6025 in high poverty communities. Based on this data, quantitative and qualitative estimates may be provided on impacts to jobs created/saved, businesses and cooperatives assisted/developed, and access to new or improved services.
- Through Poverty Targeting Goals set by RD in all State Offices, increase RD program investments in high poverty rural areas from 22% in FY15
- From FY 09 to FY 14 USDA field based agencies have consistently averaged a 70% application to obligation rate, with average obligation amounts of $141,000 for FSA, $27,942 for NRCS, and $189,047 for RD. This suggests that in order to reach our target goal of a combined FY16 & 17 10% increase over the FY 09 StrikeForce investment baseline; each agency must maintain an application rate of 7% above their FY 09 baseline each year through September 30, 2017
USDA field-based agencies in the designated StrikeForce states will increase applications through:
- Targeted outreach efforts and events with new and existing partners, building on the 3,000 events held in 2014
- Increased coordination with USDA agencies, other federal agencies and external partners
- Identification and pursuit of target areas for increased potential partnerships by state
- Targeting funding to high poverty areas to the greatest practicable extent
- By September 30, 2017, increase percentage of targeted RD investments in high poverty areas that leverage private-sector funding
- By September 30, 2017, have a total of 6 Rural and Tribal Promise Zones designess
- Based on this data, quantitative and qualitative estimates may be provided on impacts to jobs created/saved, businesses and cooperatives assisted/developed, and access to new or improved services
- Farm Bill Section 6209: Program Metrics
- Pilot economic impact studies via VAPG and Promise Zones
- Develop and publish Section 6209 Regulation
Progress Update
Q1 FY 2016 Update:
- USDA announced the expansion of the StrikeForce Initiative in December 2015 which now includes the most impoverished communities in 26 U.S. states and Puerto Rico.
- Rural Development (RD) prepared to transition leadership for the initiative to the Natural Resources and Conservation Services (NRCS) including appointment new Chair and key agency staff to spearhead work for the year.
- NRCS began working with sister field based agencies RD, and Farm Service Agency (FSA) to coordinate FY 2016 outreach plans for increasing assistance to high prioirty areas including holding cross-agency outreach meetings, and sharing cooperative agreements and MOU's with community based groups to assist with administering outreach and technical assistance.
- RD began implementing a new application tracking tool to more accurately track applications and assistance to high priority areas.
- RD held a number of meetings with public private partnership organizations and financial organization advocating for increased investment in rural America.
Q2 FY 2016 Update:
- StrikeForce Applications (cummulative since 2010):
- FSA Farm Loans - Quarter 1:2,752 and Quarter 2:12,245
- Natural Resource Conservation Service - 58,676 totaling $59M
- RD - Quarter 1:5,043 and Quarter 2:15,511 (obligations, not applications).
Q3 FY 2016 Update:
- StrikeForce Applications (cummulative since 2010):
- FSA Farm Loans - Quarter 3: 5,861 totaling $1,100 M.
- Natural Resource Conservation Service Quarter 3: 58,676 totaling $59M.
- Rural Development - Quarter 3: 21,178 (obligations, not applications) totaling $3,092 M.
Q4 FY 2016 Update:
USDA’s Rural Development continued its outreach across the nation, including extra efforts in poverty communities. RD held a number of training events scheduled to assure employees continue to offer the best services and assistance to our program constituents. RD’s Community Facilities programs did a series of workshops (4 round table meetings, with 4 to 6 states participating in each event) to expand public private partnerships which encourages outside investment to leverage with CF’s investments in rural areas – increasing and attracting the private sector capital to rural areas.
Rural Housing Month highlighted the RD home ownership and the benefits of the guarantee program (RD’s largest program) for citizens and community banks.
- SrikeForce Applications (cummulative since 2010):
- FSA Farm Loans - 19,026 totaling $1.5 billion
- Natural Resource Conservation Service – 37,299 totaling $219 million
- Rural Development – 14,366 (obligations, not applications) totaling $3 billion
Next Steps
Rural Development (RD) continues its outreach across the nation, including extra efforts in poverty communities. Over 90% of the persistent poverty counties are located in rural areas.
(Cumulative since 2010): Each agency should attempt to achieve a minimum increase in average StrikeForce designated area applications of:
- FSA - 268 applications each year for a total of approximately 5,914 applications by FY 17
- NRCS - 545 applications each year for a total of approximately 15,394 applications by FY 17
- RD - 1,229 applications each year for a total of approximately 28,422 applications by FY 17
USDA Farm Service Agency (FSA) is committed to providing informational and educational opportunities to all through the Agency’s Outreach and Education Program. One example of this, is the Bridges to Opportunity service FSA is incorporating into every county office in Fiscal Year 2017. Bridges services gives customers access to a wide range of agricultural resources and connects customers with local agricultural partners.
Expand All
Performance Indicators
Increase the percentage of USDA funding in Strikeforce areas
Increase assistance to farmers in StrikeForce areas
Increase financial assistance to underserved rural land owners for conservation practices
Increase outreach and financial assistance to farmers and landowners to expand businesses in StrikeForce areas
Increase leverage of targeted investments in high poverty areas
Contributing Programs & Other Factors
StrikeForce utilizes existing programs throughout the USDA to achieve the goals, including:
Agricultural Marketing Service
Farmers Market-Local Food Promotion Program
Specialty Crop Block Grants
Departmental Management
Socially Disadvantaged Farmer and Rancher Outreach Program
Farm Service Agency
Farm Loans, including the Microloan Program
Food and Nutrition Service
Hunger-Free Communities Grants
Farm to School Grants
Farmers Market Nutrition Programs
National School Lunch and Breakfast Programs
Summer Food Service Program
Supplemental Nutrition Assistance Program
National Institute of Food and Agriculture
Agriculture and Food Research Initiative
Community Food Projects
Small Business Innovation Research Program
Natural Resources Conservation Service
Environmental Quality Incentive Program
Regional Conservation Partnership Program
Risk Management Agency
Risk Management Outreach and Education Program
Rural Development
Business and Industry Guaranteed Loan Program
Community Facilities
Rural Business Development Grants Program
Rural Cooperative Development Grants Program
Small and Socially-Disadvantaged Producer Grants Program
Value-Added Producer Grants Program
Leverage in high poverty areas is accomplished primarily through:
Rural Development - Rural Business-Cooperative Service
Business and Industry Guaranteed Loan Program
Rural Energy for America Program
Rural Business Opportunity Grants
Bio-refinery Assistance Program
Value-Added Producer Grants Program
Rural Cooperative Development Grants Program
Intermediary Relending Program
Rural Economic Development Loans & Grants
Rural Business Enterprise Grants
Rural Micro-Enterprise Grants
Rural Development - Rural Housing Service
Community Facilities Programs
Single Family Housing Direct Loans
Single Family Housing Guaranteed Loans
Single Family Housing Repair Direct Loans and
Grants
Multi-Family Housing Loans
Rural Development - Rural Utilities Service
Water and Environmental Programs
Telecom Programs
Broadband Programs
Electric Programs
No Data Available
