U.S. Department of Agriculture (USDA)

The overall FY2001 budget request for the U.S. Department of Agriculture reflects a decrease of more than 9% over FY2000. For several research and economic development programs, the Administration is requesting the opportunity to use funds appropriated in previous years but blocked from use by Congressional appropriations language in 1999 and 2000. Selected agency program highlights include:

• Distance Learning & Telemedicine Loans and Grants – $427 million (up $206 million) to support access to advanced telecommunications services for improved education and health care in rural areas. Also includes a $2 million pilot program to fund broadband transmission and local dial-up Internet services in rural areas.
• National Research Initiative – $150 million (down from $163 million, estimated FY 2000 expenditures) for competitive research grants into agricultural genomics, food safety, environment and natural resource management, and competitiveness and profitability of agriculture.
• Initiative for Future Agriculture & Food Systems – No new appropriation is requested for the initiative, but the authorization to use the original $120 million provided in F Y 1999 is requested for competitive grants for research, extension and education to address critical issues related to food production, environmental quality, natural resources and enhanced economic viability of smaller-scale farmers.
• Fund for Rural America – No new appropriation is requested for the fund, but the authorization to use the balance of the $60 Million provided in F Y 1999 is requested. If freed, at least $20 million will support center grants for research focused on minority land and community scarcity, food entrepreneurship, waste management, site-specific resource management, and people in forested communities. The balance of the funds will support ongoing rural development activities.
• Rural Economic Development Grants – $4 million (no change) to provide funds for rural economic development and job creation projects including funding for project feasibility studies, start-up costs, incubator projects, and other expenses for the purposes of fostering rural development.
• Rural Business Enterprise Grants – $41 million (up $1 million) to fund non-profit and public efforts to support small and emerging businesses outside urbanized areas.
• Alternative Agriculture Research & Commercialization Corporation – (no additional funding requested) for the government-owned venture capital fund to commercialize bio-based industrial products (non-food, non-feed) from agricultural and forestry materials and animal byproducts.
• Rural Business Opportunity Grants – $8 million (50 percent growth from FY 2000) to support technical assistance and planning activities within non-profit and public organizations to improve economic conditions in rural areas.