Announced by president Barak Obama in February, the United States federal budget for 2016 suggests an increase of $200,000 over 2015 funding levels for Rural Cooperative Development Grants.
The move is an important achievement for the National Co-operative Business Association, which has been campaigning to restore $22m in funding for RCDG. The funding was initially eliminated from the 2015 budget.
Michael Beall, president and chief executive of NCBA CLUSA, said: “NCBA CLUSA has diligently fought for this inclusion on behalf of our members and co-ops across the nation. We are pleased that the proposed budget for fiscal year 2016 preserves the only federal program dedicated to advancing co-operative business. This is a pivotal moment for the interests of rural co-operative enterprise.”
According to Alan Knapp, NCBA CLUSA vice president for advocacy, the organisation will continue its efforts to ensure that this level of funding is retained during forthcoming budget deliberations in Congress this year.
Last year NCBA CLUSA has directly engaged with every member of the House Agriculture Appropriations Subcommittee and has also been in contact with 50 other congressional offices. It has distributed a request letter and written testimony arguing for the preservation of RCDG funding.
The RCDG programme was designed to improve the economic condition of rural areas by supporting individuals or entities in the start-up, expansion or improvement of rural co-operatives and other enterprises. The grants are awarded by the US Department of Agriculture (USDA) to fund technical assistance centres that help develop co-operative businesses. The funding can be used to conduct feasibility studies, create and implement business plans, offer technical assistance, establish low-interest loans and help rural co-ops develop new markets. Non-profit groups and higher education institutions can receive grants.
In an official statement USDA secretary, Tom Vilsack, highlighted that since 2009 the budget had provided grants and loans to assist more than 89,000 rural businesses, creating or saving more than 418,000 jobs.
Photo: USDA secretary, Tom Vilsack
