Senate Farm Bill Expands Meaning Of ‘Rural’

[imgbelt img=moulton2.jpg] The Senate version of the Farm Bill makes it easier to be classified as “rural.” Now any place under 50,000 people will qualify for the bill’s rural programs — and that could crowd out truly rural communities.

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testimony provided by the National Rural Water Association in April, at the end of fiscal year 2011, over 400 communities that had made valid applications could not be funded.

Those communities will fall in line for the next year’s funding, but the point is that this is an oversubscribed program and has been for years.  

But if this program is oversubscribed now with its limit at 10,000 people, what will be the result when the population limit is raised to 50,000, as the Senate version of the Farm Bill proposes?  

A real fear of increasing population limits for these programs is that larger rural communities often have greater institutional capacity to apply for governmental support than smaller communities.  By increasing population limits for already oversubscribed programs, you run the risk of squeezing out areas that are more in need of support.  

And, as the federal government decreases its funding in rural areas through closing Rural Development offices and reducing staffing there, rural areas will have less technical support available to them to navigate these complex programs.

The response to this concern is likely to be that the Senate bill also contains language that includes a “set-aside” of 50% in one of the rural water funding programs to rural communities with fewer than 3,000 people or a “priority” for areas with fewer than 5,500 people. However, those provisions would not even be necessary were it not for the likely squeezing out those smallest rural areas from greater competition and more applications.  

In fact, over 80% of the funding already was for areas of 5,000 or less (again from the National Rural Water Association testimony), so this language means little in practice. There is still the risk that significant amounts of funding will go to communities that might not have been eligible prior to enactment of this bill. 

There is still the risk that significant amounts of funding will go to communities that might not have even been eligible prior to enactment of this bill.

Defining rural is tough policy terrain.  However, efforts made to “streamline” these programs should not have the effect of making it harder for the communities most in need to qualify and compete.  

Aleta Botts is a native of Menifee County, Kentucky. She is a “recovering” policy staffer in Washington, D.C., who is currently  Agricultural Policy Outreach Director for the University of Kentucky. She also works with the Kentucky Center for Agriculture and Rural Development to help producers and rural businesses find funding opportunities. Her opinions are her own, not those of the center or the university.

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