US government grants funding to help establish more rural co-operatives

09 Dec 2013

The US government is allocating over USD $ 6m in grants to 34 regional organisations to grow rural businesses, particularly co-operatives.

Agriculture Secretary Tom Vilsack said the grants were aimed at creating jobs in rural communities by partnering with rural co-operatives and non-profits to expand technical assistance for Main Street businesses.

"Our rural communities have incredible potential to create new jobs and expand opportunity for rural Americans," said Mr Vilsack, adding that the new Food, Farm and Jobs Bill played an important role in developing this grant scheme. The funding is being provided through the US Department of Agriculture Rural Cooperative Development Grant (RCDG) programme. 

The grants will be awarded to non-profit groups and higher education institutions may be used to conduct feasibility studies, create and implement business plans and help business develop new markets for their products and services. They are particularly aimed at growing rural co-operatives and mutually owned businesses.

One of the recipients of the new grant, Indiana Cooperative Development Center will receive a $200,000 grant to assist food hubs, as part “My local Indiana”, an initiative aimed at encouraging buying local. Similarly, in North Dakota, the Common Enterprise Development Corporation will receive a USD $200,000 grant to explore the creation of a local food processing, storing and delivery co-operative.

These grants will help co-operative and business development agencies to support US farmers create jobs and boost consumers’ demand for local products.

The Western Illinois University will receive funding to conduct research on renewable energy and bio-based products. Through its Institute for Rural Affairs, the University will assist co-operatives to reach new markets such as renewable energy, bio-based products and local foods.

The main objective of the Institute is to increase the number of rural co-operatives that “start up, persist, expand and succeed”, according to Fred Iutzi, an IIRA program manager. They will also try to identify specific barriers faced by co-operatives in production, packaging and marketing. For a greater outcome, the University will work with other local institutions.

Since 2009, the RCDG programme has awarded 166 grants of USD $33m, helping nearly 3,000 local businesses.