Three for Rural America

Encouraging economic growth in rural America is the topic of a recent report, a new $500 million economic development investment program, and an upcoming conference worth further investigation.

Capitalizing on Rural America

Policy and funding priorities have not kept pace with the economic diversification underway in rural America, according to a study commissioned by the Federal Home Loan Bank of Des Moines. The study, Crafting a Competitive Future, provided the platform for a recent Washington, D.C. forum on rural development issues. It is divided into three major sections: a description of the economic and social drivers and trends affecting rural America; a summary of key federal programs among the 337 identified in the report to provide financial and technical assistance; and a discussion of several strategic options for capitalizing on rural America.

The underlying conclusion of the report and guiding principle for the recommendations advanced in the strategic options section may apply to many urban areas as well "communities and policymakers should shift from the traditional focus on problems to an emphasis on rediscovering the economic value that is offered by rural regions and upon which new, productive activities can be pioneered and grown." (p. 7)

The full report is available at: http://www.fhlbdm.com/Docs/About_Us/PF/SRIReport_FINAL.pdf

$500M Rural Capital Advance Launched

In response to the recommendations heard at its Capitalizing on Rural America symposium (see report above), the Home Loan Bank is putting money where its mouth is.

The bank recently committed $100 million a year for five years to support innovative rural economic development initiatives. A new program, entitled Rural Capital Advance, will support business expansion, start-ups, and small business retention. The goal is to increase flexibility and creativity in how rural areas approach economic growth, encouraging communities to focus on innovation and entrepreneurship rather than chasing one big company or potential employer.

Of the first $100 million to be allocated, $50 million will be reserved until Dec. 31 for five states (Iowa, Minnesota, Missouri, North Dakota, and South Dakota), with each receiving $10 million. Any funds to those five states beyond the $10 million will be distributed on a first-come, first-serve basis.

For the Rural Capital Advance, "rural" is defined as a unit of general local government with a population of 25,000 or less; an unincorporated area outside a Metropolitan Statistical Area (MSA), or an unincorporated area within an MSA that qualifies for housing or economic development assistance by the U.S. Department of Agriculture.

More information is available at: http://www.fhlbdm.com/ci_cia_rca.htm

Rising Together: The Summit on the Rural South

This year's annual conference of the Southern Growth Policies Board will be a three-day summit in Point Clear, Ala., focusing on new strategies and success stories in rural development. Gathering rural experts, government leaders, the private sector, and economic and community development professionals, the June 12-14 conference will share ideas for "creating rural prosperity in a uniquely Southern way - through storytelling." The Southern Growth Policies Board also will release its 2005 Report in the Future of the South to kick off the event. More information is available at: http://www.southern.org/conference/reg.shtml