Whether by creating jobs, investing in infrastructure or providing services, co-operatives are helping to boost rural economies in the USA. Recognising the important contribution of co-operatives to rural development, the United States Department of Agriculture (USDA) continues to build partnerships with co-operatives across the country.
Recently, USDA signed a new partnership with two electric co-operatives that is expected to promote rural economic growth while preserving the environment and saving customers money. Under the Energy Efficiency and Conservation Loan Program, USDA’s Rural Utilities Service granted $10.5m in loans to Roanoke Electric Membership Corp. and North Arkansas Electric Cooperative.
“These loans to North Arkansas Electric Cooperative and Roanoke Electric Membership Corp. are a landmark in our efforts to promote rural economic growth, while reducing greenhouse gases. This is an historic new bond in the partnership between USDA and our rural electric cooperatives,” said Agriculture Secretary Tom Vilsack upon announcing the partnership.
The loans will enable Roanoke Electric Membership Corp. will receive up to $6 million to finance all cost-effective, energy-efficiency improvements identified by audits of residential or business customers with sound bill payment history, regardless of income, credit score or status as renters or homeowners. With 4.6m funding North Arkansas Electric Co-op will invest in geothermal and air source installations, energy efficiency lighting and weatherisation measures.
Earlier this year USDA Deputy Secretary General Doug O’Brian highlighted the importance of co-operatives in rural development. Speaking at a conference on the US economy hosted by the National Co-operative Business Association (NCBA), Mr O’Brian said that co-ops were a pillar of not only US economy, but also the world economy. The nation’s 2,100 farmer co-operatives achieved record sales of $246bn in 2013, he said.
Mr O’Brian referred to a study released in 2012 by the Organization for Economic and Cooperative Development which revealed that the rural regions of around 30 industrialised countries worldwide, including the USA, are growing faster than urban regions in these countries.
He was echoed by Mike Beal, president and chief executive of NCBA, who told the conference that co-operatives provided 185,000 jobs in rural areas in the USA and delivered services to more than 130m member-owners and customers.
In Southern USA co-operatives are helping to tackle food deserts. Also speaking at the conference, Lillian Salerno, administrator of the USDA’s Business Cooperative Service, said that in order to address this her department had funded hundreds of farmers markets and other food hubs, many of these co-ops.
Mr O’Brian asked co-operators to form new partnerships with those that share a common mission with co-ops and “take calculated risks” so that their co-operative can make a greater impact.
Another important issue, he said, was making sure that leadership, management and board structure in co-ops look like the people that they serve, having diversity of opinion to make sure that all the equities are understood.
Photo: Mike Beal, president and chief executive of NCBA speaking at the event (c) NCBA
