Order Code RL34126
Rural Development and the 2007 Farm Bill
Updated January 3, 2008
Tadlock Cowan
Analyst in Natural Resources and Rural Development Policy
Resources, Science, and Industry Division

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Rural Development and the 2007 Farm Bill
Summary
Congress has expressed its concern with rural communities most directly
through periodic omnibus farm bill legislation, most recently in the 2002 Farm
Security and Rural Investment Act (P.L. 107-171, the 2002 farm bill) and in the
House- and Senate-passed versions of the pending 2007 farm bill (H.R. 2419 and
S.Amdt. 3500, respectively). Congress uses periodic farm bills to address emerging
rural issues as well as to reauthorize and/or amend a wide range of rural programs
administered by USDA’s three rural development mission agencies: Rural Housing
Service, Rural Business-Cooperative Service, and Rural Utilities Service.
Title VI considers a wide range of policy issues concerning rural America. In
the 2002 farm bill, these issues included provisions such as equity capital
development in rural areas, regional economic planning and development, essential
community facilities, infrastructure needs, value-added agricultural development, and
broadband telecommunications development. H.R. 2419 and S.Amdt. 3500 consider
similar issues as well as several new ones. The House-passed bill proposes grants
to improve technical infrastructure of rural health care facilities, expanding
broadband access in rural areas, and creating new entrepreneurial capacity in rural
communities with a microenterprise grants program. The Senate-passed bill also
proposes a microenterprise assistance program, as well as a new rural collaborative
investment program, a broadband Connect the Nation program, assistance for locally
produced agricultural products, child day care facility grants, a new Northern Border
Economic Development Commission, and a one-time funding of pending water and
wastewater infrastructure projects.
Several programs authorized with mandatory spending in the 2002 farm bill are
reauthorized with discretionary funding in H.R. 2419 (Rural Firefighters and
Emergency Personnel, Rural Strategic Investment Program, and the Access to
Broadband Services in Rural Areas). The Value-Added Grants Program, similarly
authorized in the 2002 farm bill, is also reauthorized by H.R. 2419 with $150 million
of mandatory funding over five years. S.Amdt. 3500 provides $400 million in
mandatory spending for 5 programs: rural hospitals, the microenterprise assistance
program, the rural collaborative investment program, child day care facilities, and the
pending water infrastructure applications.
The Senate-reported bill also redefines the 2002 definition of “rural” to include
housing density criteria. As with the House-passed bill, the Senate measure also
directs the Secretary of Agriculture to produce a report on the various definitions of
“rural” used by USDA in providing assistance.
Other discretionary programs in both the House and Senate measures (e.g.,
water and waste disposal grants, technical assistance for rural water systems,
emergency community water assistance, business opportunity grants, water assistance
to Native villages in Alaska, community facilities for Tribal colleges, distance
learning and telemedicince) are also reauthorized and/or amended through FY2012.
The report will be updated regularly.

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Contents
Background and Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Issues Influencing the Rural Development Title . . . . . . . . . . . . . . . . . . . . . . 2
Current Federal Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Recent Congressional Activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
House-Passed (H.R. 2419) and Senate-Passed (S.Amdt. 3500)
Farm Bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
The Administration’s Proposal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Appendix A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
List of Tables
Table 1. Comparison of Major Rural Development Provisions in the
Farm, Nutrition, and Bioenergy Act of 2007 (H.R. 2419) and the
Food and Energy Security Act of 2007 (S.Amdt. 3500) with Provisions
in the Farm Security and Rural Investment Act of 2002 (P.L. 107-171) . . . 11

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Rural Development and the 2007 Farm Bill
Background and Overview
While farm commodity issues may occupy center stage in policy discussions of
the periodic omnibus farm bills, rural community and economic development are also
topics of congressional concern and a separate title within the farm bill. Since 1973,
omnibus farm bills have included a rural development title, the most recent being
Title VI of the Farm Security and Rural Investment Act of 2002 (P.L. 107-171).
Positioning rural areas to better compete in a global economic environment is one of
the key issues framing the current debate about the future of rural America. When
agricultural production and related businesses dominated rural economies, policies
that strengthened and improved agriculture tended to strengthen and improve the
well-being of most of America’s small communities and rural residents. As the
strength of this linkage has declined, the need for new sources of rural economic
development has become more apparent to policymakers and rural development
practitioners.
Congressional interest in rural policy encompasses a wide range of issues,
including agriculture, forestry, and mining, community infrastructure, natural
resource conservation and management, bioenergy and economic development.
Current challenges to and reform of existing federal rural policies are evolving in an
environment of increasing concern about economic competitiveness, a shift away
from agriculture toward manufacturing and services, new federal political strategies,
and the emergence of new political interests in farm bill deliberations. A changing
rural America is also producing pressures for different policies and raising new
questions about what Congress’s role should be in shaping rural policy.
Both agriculture and manufacturing issues are increasingly seen as part of global
and regional restructuring issues, which have significant implications for rural areas,
especially those areas where these production sectors remain dominant. Today,
nearly 90% of total farm household income comes from off-farm sources.1
Manufacturing now accounts for about 25% of rural private sector earnings and about
12% of all rural jobs. The service sector, as with the U.S. domestic economy as a
whole, now dominates the rural labor market, although the rural service sector differs
from the metropolitan service sector in terms of job categories, skills, and wages.
The rural development title of past farm bills generally has supported (1) the
infrastructure of rural areas, with traditional support for housing, electrical generation
and transmission, water and wastewater, and community capacity, (2) agricultural
development, and (3) rural business creation and expansion. More recently,
1 This figure reflects the significant proportion of small, “life-style” farms whose owners are
not primarily involved in production agriculture. For those farms where agricultural
production is central to the household’s income, the proportion of off-farm income is less.

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policymakers have pushed for programs that support innovative and alternative
business development, and innovative mechanisms to finance it. Pressure for such
alternative approaches is expected to continue as policymakers recognize the
changing structure of agriculture and the great diversity among rural communities,
with some rural areas growing and prospering, and others falling further behind as
their primary industries (including agriculture) either decline or adapt to a global
economy. Such adaptation and dislocation over the past decade has often meant
fewer rural employment opportunities and significant population outmigration for
many rural communities.
To emphasize the importance of agricultural production in the local economies
that still characterizes many rural areas, legislative proposals are being circulated that
promote technologies to help farmers with planting decisions and local investments
in industries that will add value to their products, among others. Research is also
increasingly focused on improvements in agricultural waste management and
environmental protections. Traditional strategies, notably value-added agriculture
(e.g., regional food processing plants, cooperatives, organic farming, biofuels) are
being promoted by many in the farm sector. While holding promise for agriculture
and surrounding communities, there remain limits on the extent to which agriculture
and other mature industries can become a significant engine for renewed rural
economic prosperity.
While commodity policy dominates much of the debate and most of the funding,
production agriculture remains a comparatively small and shrinking part of the rural
economy, with less than 8% of the rural population employed in agriculture. There
is growing recognition that farmers in many rural areas depend more on a healthy
rural economy than the rural economy is dependent on farmers for its vitality. The
need to strengthen the capacity of rural areas more generally to compete in a global
economy is becoming more widely appreciated as the limitations of commodity
subsidies, peripheral manufacturing, and physical infrastructure as mainstays of rural
development policy become more obvious.
Issues Influencing the Rural Development Title
Emerging policy issues surround the question of whether current farm policies,
which rely heavily on commodity support payments and subsidies to a few
production sectors, help, hinder, or have little impact on the future development of
economically viable rural communities. Rural manufacturing, which tends to be
lower-skilled and lower-waged, is also undergoing restructuring with the loss of
manufacturing to foreign competition. While transformation to a service economy
continues in rural America, service employment in many rural areas tends to be in
lower-wage personal services rather than business and producer services. Continuing
population and economic decline in many farming and rural areas is compelling
policymakers and rural areas to create new sources of competitive advantage,
innovative ways of providing public services to sparse populations, and new ways of
integrating agriculture into changing rural economies.
More recently, economic development efforts in some areas have targeted
various entrepreneurial strategies. These approaches attempt to capitalize on a

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particular area’s distinctive social, economic, and environmental assets and
advantages to build endogenously on existing strengths. Developing a local
entrepreneurial culture seems to be an important approach in these efforts’ successes.
Linking public and private sources to build “business incubators” is a common
strategy, as is developing new commercial ties with area colleges and universities.
Communities are also applying such entrepreneurial energy to making their local
governments, schools, and hospitals more efficient through, for example,
telecommunication innovations.
The trends noted above suggest a range of issues affecting the rural development
title of the 2007 farm bill that may include the following:
! Conservation and environmental restoration as rural
employment opportunities
! Stemming rural population out-migration

! Vertical integration and coordination of agriculture into
supply networks and their implication for rural areas

! Developing rural entrepreneurial capacity

! Rebuilding an aging rural physical infrastructure

! Public service delivery innovations in
sparsely
populated areas

! Increasing suburbanization and the conflicts between
agriculture and suburban development

! Human capital deficiencies in rural areas

! Regional-based efforts for economic development

! Connecting businesses and rural communities with
broadband telecommunications infrastructure
The rural development titles of the House- and Senate-passed versions of the
2007 farm bill are taking shape against this backdrop of shifts in the rural economy,
widespread and long-term poverty in some rural areas, outmigration in other rural
areas, dwindling economic opportunity in rural areas, gaps in critical infrastructure,
and a growing appreciation in many quarters of the limits of existing rural
development programs to respond to the great diversity of rural places and
socioeconomic circumstances. Such issues give rise to several policy relevant
questions.
! How effective are current federal programs in improving the
competitive position of rural areas?
! Can broad-based federal rural programs be better targeted to the
critical needs of particular rural areas?
! How might regional funding approaches be better integrated into
federal policy for rural areas?
! How can federal policies better assist entrepreneurial efforts in rural
communities?
! How might the biofuels emphasis in the upcoming farm bill be
connected to rural development programs?

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Current Federal Programs
More than 88 programs administered by 16 different federal agencies target rural
economic development. The Rural Development Policy Act of 1980 (P.L. 96-355),
however, named USDA as the lead federal agency for rural development. USDA
administers most of the existing rural development programs and has the highest
average of program funds going directly to rural counties (approximately 50%).2
Three agencies are responsible for USDA’s rural development mission area: the
Rural Housing Service (RHS), the Rural Business-Cooperative Service (RBS), and
the Rural Utilities Service (RUS). An Office of Community Development provides
community development support through Rural Development’s field offices.
It is important to note that most loan and grant programs administered by USDA
Rural Development are funded through annual (discretionary) appropriations. The
rural development title of omnibus farm bills does not address every program
administered by the three USDA mission agencies. These various programs are
“permanently” authorized, often through amendments to the Consolidated Farm and
Rural Development Act of 1972 (the ConAct, P.L. 87-128) or the Rural
Electrification Act of 1936 and are funded through annual appropriations. The 1996
farm bill (P.L. 104-127) authorized the first provision in the rural development title
funded by mandatory spending, the Fund for Rural America, which expired in 2002.
The 2002 farm bill (P.L. 107-171) authorized six new programs supported through
mandatory spending. Mandatory funding for most of these programs, however, was
largely blocked by appropriators between 2002 and 2007. Several of the programs
were funded instead through discretionary appropriations, although in amounts less
than the original authorization.
Recent Congressional Activity
House-Passed (H.R. 2419) and Senate-Passed (S.Amdt. 3500) Farm
Bills. The House approved the Farm Nutrition and Bioenergy Act of 2007 (H.R.
2419) on July 27, 2007, and the Senate passed S.Amdt. 3500 (Food and Energy
Security Act of 2007) on December 14, 2007. Many of the programs authorized in
the 2002 farm bill are reauthorized in the two bills. Appendix A provides a side-by-
side comparison of the 2002 provisions with the provisions in the House and Senate
bills. Unlike the 2002 farm bill, the rural development provisions of H.R. 2419
contain only one mandatory funded program (Value-Added Product Grants).
However, several programs that were authorized to receive mandatory funding in the
2002 farm bill were reauthorized in H.R.2419 with discretionary funding (e.g., the
Rural Strategic Investment Program and the Rural Firefighters and Emergency
Medical Personnel Program).
The Senate bill provides $400 million in mandatory funding for five programs:
rural hospitals, a microenterprise assistance program, a rural collaborative investment
2 More information on individual USDA Rural Development programs can be found in CRS
Report RL31837, An Overview of USDA Rural Development Programs.

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program, child day care facility grants, and a one-time funding of pending water and
wastewater infrastructure applications.
Concerns about how effectively USDA targets its rural development loan and
grant assistance have been a recurring consideration by policymakers and rural
development practitioners. The general concern is that rural development funding
may not be targeted to the neediest rural communities because of the way rural is
defined. Section 6001 of H.R. 2419 would direct the Secretary to assess the varying
definitions of “rural” used by USDA and to describe the effects these different
definitions have on USDA Rural Development programs. Section 6021 of the Senate
bill also contains this provision. The provision directs the Secretary to make
recommendations for ways to better target rural development funds. This provision
is related to Section 6014 of H.R. 2419, which directs the Secretary to review
income, population density, and seasonal population increases of eligible rural
communities when awarding loans and grants and to issue regulations that establish
applicable limitations on rural areas. In the Senate bill, Section 6021 proposes a new
definition of “rural” that incorporates housing density criteria into the definition of
a rural area as one that lies outside of a Bureau of the Census-defined “urban area.”
The Senate measure also permits the Under Secretary for Rural Development
discretion in determining whether individual rural areas should fall under the new
definition.
Other new provisions in the rural development titles of both the House- and
Senate-passed bills include the following programs.
! Section 6012 of H.R. 2419 authorizes grants to improve technical
infrastructure and improve the quality of Rural Health Care
Facilities. S.Amdt. 3500 authorizes grants and loan guarantees for
similar purposes. The House-passed measure authorizes $30 million
annually for 2008 through 2012, and S.Amdt. 3500 would provide
a total of $50 million in mandatory spending.
! Section 6013 of H.R. 2419 and Section 6022 of S.Amdt. 3500
authorize a Rural Entrepreneur and Microenterprise Assistance
Program. A microenterprise is defined as a sole proprietorship or a
business with fewer than 10 full-time employees. The program
would target economically disadvantaged microentrepreneurs, i.e.,
those who could compete in the private sector but have been
impaired because of lack of credit opportunities and limited equity
capital options. Federal assistance would be provided to
microenterprise development organizations to support the
development of entrepreneurial activities in rural areas. These
qualified organizations would be required to match at least 25% of
the federal grant. Appropriated funding is authorized at $20 million
annually for 2008 through 2012 in the House measure, and $40
million total in mandatory spending under the Senate-passed bill.
! Section 6024 of H.R. 2419 authorizes the Community Connect
Grant program. The program would provide grant assistance to

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eligible broadband providers and give priority to financing
broadband service that delivers telemedicine and distance learning.
Applicants would be required to provide a 15% matching fee.
Grants to support financing duplicative service provided by another
entity would be prohibited. Appropriated funding is authorized at
$25 million annually for 2008 through 2012. The Senate-passed
measure proposes a Connect the Nation Act to create a competitive
state-federal matching grant program for rural broadband
development. The program would be housed in the U.S. Department
of Commerce and would support public-private partnerships to
assess current broadband use and to build geographic information
system (GIS) maps of service. Funding is authorized at $40 million
annually for 2008-2012.
In addition to these newly authorized programs within both House and Senate
bills, the rural development titles of H.R. 2419 and S.Amdt. 3500 also include other
provisions to create or to reauthorize and/or amend a wide variety of loan and grant
programs that provide further assistance in four key areas: (1) broadband and
telecommunications, (2) rural utilities infrastructure, (3) business and community
development, and (4) regional development.
Broadband and Telecommunications.
! Section 6023 of H.R. 2419 and Section 6110 of S.Amdt. 3500
reauthorize the Access to Broadband Telecommunications
Services in Rural Areas. The program was originally authorized
in the 2002 farm bill (Section 6103) and funded by mandatory
authorization. Its effectiveness, however, has been limited by
difficulties in implementation. Both the House and Senate bills
make changes in the defining eligible rural communities, make
provisions for prioritizing loans, and reduce equity requirement on
broadband providers offering service to unserved areas. Both the
House and Senate measures further authorize the Secretary to
designate a National Center for Rural Telecommunications
Assessment and authorize discretionary funding at $1 million
annually.
! Section 6028 of H.R. 2419 authorizes assistance for Rural Public
Television Stations to support their transition from analog to digital
equipment.
! Section 6029 of H.R. 2419 and Section 6302 of S.Amdt. 3500
reauthorize the Distance Learning and Telemedicine Loan and
Grant Program, which provides funding to educational and medical
facilities. The Senate measure would also emphasize library
connectivity as an objective of program funding.
! Section 6031 of H.R. 2419 authorizes a Comprehensive Rural
Broadband Strategy. The provision directs the Secretary of

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Agriculture to develop a comprehensive strategy for enhancing
broadband service to rural areas. Section 6112 of S.Amdt. 3500
directs the Comptroller General to conduct a Study of Federal
Assistance for Broadband Infrastructure. The study would assess
how RUS makes decisions regarding applications for broadband
assistance.
Rural Utilities Infrastructure.
! Section 6002 of H.R. 2419 and Section 6001 of S.Amdt. 3500
reauthorize Water, Waste Disposal and Wastewater Facility
Grants through 2012. Discretionary funding is provided under the
utilities account of Rural Community Advancement Program
(RCAP). This is the largest program in the RCAP portfolio. The
Senate measure would also amend the current interest rate schedule
for water and waste water loans by setting rates to a proportion of a
municipal bond index.
! Section 6004 of H.R. 2419 and Section 6004 of S.Amdt. 3500
reauthorize the Rural Water and Wastewater Circuit Rider
Program, which provides technical assistance to rural water
systems. Funding is authorized at $25 million annually in the House
measure and $20 million annually in the Senate-reported bill.
! Section 6006 of H.R. 2419 and Section 6011 of S.Amdt. 3500
reauthorize the Emergency and Imminent Community Water
Assistance Grant Program, which provides funding to rural
communities facing threats to the provision of potable water. It is
funded under the utilities account of RCAP.
! Section 6007 of H.R. 2419 and Section 6012 of S.Amdt. 3500
reauthorize Water Systems for Rural and Native Villages in
Alaska. This provision targets funding under the utilities account
of RCAP for Alaskan native communities.
! Section 6008 of H.R. 2419 and Section 6013 of S.Amdt. 3500
reauthorize grants to nonprofit organizations for the construction and
refurbishing of household water well systems. The program
targets well systems for low-income individuals in rural areas.
! Section 6033 of S.Amdt. 3500 would provide $135 million in
mandatory funding for Pending Water and Wastewater Loan and
Grant Applications. This would be a one-time expenditure
designed to remove some of the backlog of applications.
Business and Community Development.
! Section 6003 of H.R. 2419 and Section 6002 of S.Amdt. 3500
reauthorize Rural Business Opportunity Grants, which are used

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for economic planning and technical support and training for rural
businesses.
! Section 6005 of H.R. 2419 and Section 6007 of S.Amdt. 3500
reauthorize Tribal College and University Essential Community
Facilities through 2012. This program targets funding under the
Community Facilities Program, an RCAP account, to tribal facilities.
Essential facilities include those that support public safety
infrastructure and provide community health care.
! Section 6009 of H.R. 2419 and Section 6015 of S.Amdt. 3500
reauthorizes Rural Cooperative Development Grants. This
provision permits multi-year grants (up to three years) for awards to
rural cooperative centers. Section 6009 would further provide a
20% set-aside for rural centers working with socially disadvantaged
communities when the appropriation level exceeds $7.5 million, and
directs the Secretary of Agriculture to conduct research on the
national economic impact of cooperatives.
! The Senate measure (S.Amdt. 3500 ) includes three new programs
to assist local food production and community development: Section
6017 would provide loans and loan guarantees for Locally
Produced Agricultural Food Products. Section 6018 would
establish a Center for Healthy Food Access and Enterprise
Development that would provide technical and marketing assistance
for food wholesalers and retailers. Section 6023 would establish
Artisanal Cheese Centers to provide technical assistance relating
to the manufacture and marketing of artisanal cheese by small and
medium-sized companies.

! Section 6011 of H.R. 2419 and Section 6019 of S.Amdt. 3500
reauthorize the Appropriate Technology Transfer for Rural
Areas Program (ATTRA). The program supports a cooperative
agreement between the Rural Business-Cooperative Service and the
University of Arkansas to provide information and technical support
for sustainable and organic agricultural production. Both the House
and Senate measures authorize $5 million annually.
! Section 6026 of H.R. 2419 reauthorizes the Rural Firefighters and
Emergency Medical Service Assistance Program. Originally
authorized by the 2002 farm bill, the measure provides grants to
enable entities to provide improved emergency medical assistance
in rural areas. It also provides grants to pay the cost of training
emergency personnel to respond to hazardous materials and
bioagents in rural areas. Unlike the 2002 farm bill, which provided
mandatory funding, the provision is authorized for discretionary
funding up to $30 million annually.

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! Section 6027 of H.R. 2419 and Section 6401 of S.Amdt. 3500
reauthorize the Value-Added Agricultural Market Development
Program. The House-passed provision targets funding for “mid-tier
value chains” which are local and regional supply networks linking
independent producers with businesses and cooperatives. It also
reserves 10% of the Value-Added Products Grants for projects
benefitting beginning or socially disadvantaged farmers and
ranchers. Funding is authorized at $30 million annually in
mandatory spending from the Commodity Credit Corporation. The
Senate measure also prioritizes loans that contribute to opportunities
for beginning farmers and ranchers and socially disadvantaged
farmers or ranchers. The Senate measure would also reduce the
maximum size of a grant. The Senate measure authorizes such sums
as necessary.
! Other provisions in the Senate-reported bill include $40 million in
mandatory spending for Child Care Facility Grants. This
provision would be supported under the Community Facilities
Grants program. Section 6028 authorizes $2 million annually in
grants to nonprofit organizations for Expansion of Employment
Opportunities for Individuals with Disabilities in Rural Areas.
Section 6032 reauthorizes the Rural Business Investment Program
through 2012. This program was authorized in the 2002 farm bill
and given mandatory spending. The reauthorization provides such
sums as necessary.
Regional Development.
! Section 6019 of H.R. 2419 and Section 6029 of S.Amdt. 3500
reauthorize the Delta Regional Authority, a federal-state
partnership serving a 240-county/parish area in an eight-state region
of the Mississippi delta.
! Section 6020 of H.R. 2419 and Section 6030 of S.Amdt. 3500
reauthorize the Northern Great Plains Regional Authority
(NGPRA), which covers Iowa, North and South Dakota, Minnesota,
and Nebraska. Both provisions authorize the NGPRA to organize
and operate without a federal member if no such individual is
nominated within 180 days of enacting the bill. The House-passed
measure would eliminate prioritization of activities to be funded by
the program and would eliminate the requirement that 75% of the
authority’s funding go to “distressed counties and isolated areas.”
! Section 6034 of S.Amdt. 3500 would create a new Northern
Border Economic Development Commission. The commission’s
region would include counties in Maine, New Hampshire, Vermont,
and New York. Funding is authorized at $40 million annually for
FY2008-FY2012.

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! Section 6005 of S.Amdt. 3500 reauthorizes Multijurisdictional
Regional Planning Organizations through 2012. This program
was authorized in the 2002 farm bill.
! Section 6032 of H.R. 2419 directs the Secretary of Agriculture, in
coordination with the Secretary of Transportation, to conduct a
Study of Railroad Issues regarding the movement of agricultural
products, renewable fuels, and economic development in rural
America. S.Amdt. 3855 deleted this similar measure from S.Amdt.
3500.
! Section 6032 of S.Amdt. 3500 authorizes a Rural Collaborative
Business Investment Program and provides $135 million in
mandatory spending. The provision would create Regional
Investment Strategy Grants, Rural Innovation Grants, and a
Rural Endowment Loan Program. The provision directs the
Secretary to appoint a National Rural Investment Board and create
a National Institute on Regional Rural Competitiveness and
Entrepreneurship. The program would provide rural regions with
a financial vehicle to develop and implement local strategies for
innovation.
The Administration’s Proposal
The Administration proposes three major provisions in its rural development
title: (1) $1.6 billion in loan guarantees and $5 million for grants to upgrade 1,238
rural Critical Access Hospitals; (2) $500 million to reduce the backlog of rural
development loan and grant applications; and (3) the consolidation of various rural
development legislative authorities into four platforms, one for rural business loans,
one for rural business grants, one for rural community programs, and a multi-
departmental energy grants platform. The Administration’s rural development
proposal would also give priority to specialty crops in the Value-Added Product
Grants program, while the energy grants platform would invest $210 million in
subsides for $2.17 billion in loan guarantees over 10 years for cellulosic ethanol
facilities. Each of these programs would be funded by annual appropriations.

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Appendix A
Table 1. Comparison of Major Rural Development Provisions in the Farm, Nutrition, and Bioenergy Act
of 2007 (H.R. 2419) and the Food and Energy Security Act of 2007 (S.Amdt. 3500)
with Provisions in the Farm Security and Rural Investment Act of 2002 (P.L. 107-171)
Current Law (Title VI of
Title VI Sections, Farm, Nutrition, and Bioenergy
Title VI Sections, Food and Energy Security Act
2002 Farm Bill, P.L. 107-171)
Act of 2007 (H.R. 2419)
of 2007 (S.Amdt. 3500)
Rural Infrastructure
Rural areas are defined as any area other than
Section 6001: Directs Secretary of Agriculture to
Section 6021: Proposes a new definition of “rural”
an area with 50,000 more in population and its
assess varying definitions of “rural” used by USDA.
that would include housing density criteria to areas
adjacent and contiguous urban areas.
Also elaborates demographic and income criteria to
outside U.S. Census-defined “urban areas.”
be applied in considering applications for rural
development projects (Section 6014).
Appropriation authority through 2007 for loans
Section 6002: Reauthorizes Water/Waste Disposal
Section 6001: Reauthorizes Water/Waste Disposal
and grants for communities of 10,000 or less
grants through 2012.
grants through 2012.
that are unable to get commercial credit to
build or improve community water and
wastewater systems.
No provision
No provision
Section 6033: Provides $135 million in mandatory
spending for pending water and wastewater loans.
Appropriation authority for Water/Wastewater
Section 6004: Reauthorizes Water/Wastewater
Section 6004: Reauthorizes Water/Wastewater
Circuit Rider Program. Program is a technical
Circuit Rider Program through 2012 (Section 6004).
Circuit Rider Program through 2012.
assistance program based on the circuit rider
program of the National Rural Water
Association.
Grants to Nonprofit Organizations to Construct
Section 6008: Reauthorizes through 2012 grants to
Section 6013: Reauthorizes through 2012 grants to
and Refurbish Individually Owned Household
Nonprofit Organizations to Construct and Refurbish
Nonprofit Organizations to Construct and
Well-Water Systems. Eligible households
Individually Owned Household Well-Water
Refurbish Individually Owned Household Well-
must earn less than 100% of the median non-
Systems.
Water Systems.
metro household income for the state or
territory. Limited to $8,000 per household.

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Current Law (Title VI of
Title VI Sections, Farm, Nutrition, and Bioenergy
Title VI Sections, Food and Energy Security Act
2002 Farm Bill, P.L. 107-171)
Act of 2007 (H.R. 2419)
of 2007 (S.Amdt. 3500)
Authorizes appropriations through 2007 for
Section 6006: Reauthorizes Emergency and
Section 6011: Reauthorizes Emergency and
Emergency and Imminent Community Water
Imminent Community Water Assistance Grants
Imminent Community Water Assistance Grants
Assistance Grants. Grants to assist
through 2012.
through 2012.
communities in complying with Water
Pollution Control Act or Safe Drinking Water
Act. For communities of less than 10,000
population. Set-asides for communities less
than 3,000.
Authorizes appropriations through 2007 for
Section 6007: Reauthorizes Grants for Water
Section 6012: Reauthorizes Grants for Water
grants to Native Villages in Alaska for water
Systems for Rural and Native Villages in Alaska
Systems for Rural and Native Villages in Alaska
systems.
through 2012.
through 2012.
Authorizes loans and grants for “essential
No provision
Section 6003: Authorizes $40 million in mandatory
community facilities.” Defines child day care
spending for child day care facility grants.
facility as an essential community facility.
Business and Community Development
Authorizes appropriations through 2007 for
Section 6003: Reauthorizes Rural Business
Section 6002: Reauthorizes Rural Business
Rural Business Opportunity Grants. Grants
Opportunity Grants through 2012 (Section 6003).
Opportunity Grants through 2012.
support business development/labor training in
rural areas.
Authorizes appropriations for direct and
Section 6010: Establishes new criteria for Business
No provision
guaranteed loans to assist business
and Industry loans. Gives priority to loans
development in rural areas.
supporting local and regionally produced
agricultural products.
Authorizes appropriations for grants to
Section 6009: Reauthorizes and Amends Rural
Section 6015: Reauthorizes and Amends Rural
cooperative development centers.
Cooperative Development Grants to permit multi-
Cooperative Development Grants to permit multi-
year funding.
year funding.
Authorizes a Rural Business Investment
No provision
Section 6031: Reauthorizes the Rural Business
Program to make loans and grants to rural
Investment Program. Authorizes such sums as
companies through regional investment boards.
necessary.
Authorizes a program with a third party entity
Section 6011: Reauthorizes and amends provision
Section 6019: Reauthorizes and amends provision
(National Center for Appropriate Technology)
for the Appropriate Technology Transfer for Rural
for the Appropriate Technology Transfer for Rural
to provide information and technical assistance
Areas program (ATTRA) and provides $5 million
Areas program (ATTRA) and provides $5 million
on sustainable agriculture.
annually.
annually.

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CRS-13
Current Law (Title VI of
Title VI Sections, Farm, Nutrition, and Bioenergy
Title VI Sections, Food and Energy Security Act
2002 Farm Bill, P.L. 107-171)
Act of 2007 (H.R. 2419)
of 2007 (S.Amdt. 3500)
No provision
Section 6012: Authorizes grants to improve the
Section 6006: Authorizes loans and loan guarantees
technical infrastructure of rural health care facilities.
to improve the technical infrastructure of rural
Provides $3 million annually.
health care facilities. Provides $$50 million in
mandatory spending.
No provision
Section 6013: Authorizes a Rural Entrepreneur and
Section 6022: Authorizes a Rural Microenterprise
Microenterprise Assistance Program. Provides $20
Assistance Program. Provides $$40 million in
million annually.
mandatory spending.
Authorizes multijurisdictional planning
No provision
Section 6005: Reauthorizes multijurisdictional
assistance to regional organizations
regional planning organizations
No provision
No provision
Section 6017: Provides loan and loan guarantees to
assist local food producers im improving access to
locally-produced food for underserved
communities.
No provision
No provision
Section 6018: Establishes a Center for Healthy
Food Access and Enterprise Development to
provide technical assistance to retailers and
wholesalers in storage, processing , and marketing
locally-produced food products. Provides $1
million annually 2008-2012.
No provision
No provision
Section 6023: Establishes Artisanal Cheese Centers
to provide educational technical assistance to small
and medium sized businesses manufacturing and
marketing artisanal cheese.
Authorizes a state-federal partnership of rural
Section 6016: Reauthorizes the National Rural
Section 6024: Reauthorizes the National Rural
development agencies
Development Partnership.
Development Partnership.
Authorizes an equity generating program for
Section 6021: Amends the Rural Strategic
Section 6032: Authorizes a new rural Collaborative
rural business development modeled on the
Investment Program to provide discretionary
Investment Program and provides $135 million in
Small Business Investment Companies of the
funding of not more than $25 million annually 2008-
mandatory spending.
Small Business Administration.
2012.

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CRS-14
Current Law (Title VI of
Title VI Sections, Farm, Nutrition, and Bioenergy
Title VI Sections, Food and Energy Security Act
2002 Farm Bill, P.L. 107-171)
Act of 2007 (H.R. 2419)
of 2007 (S.Amdt. 3500)
Authorizes various Broadband and
Section 6024: Authorizes the “Community Connect
Section 6201: Authorizes the “Connect the Nation
telecommunication technology programs to
Grant Program” to provide broadband service for
Act” and provides grant assistance to encourage
serve rural areas.
enhanced education, public safety, and health care.
state initiatives to improve broadband service.
Section 6023: Amends and reauthorizes
Section 6110: Amends and reauthorizes
Enhancement of Access to Broadband Service in
Enhancement of Access to Broadband Service in
Rural Areas. Redefines eligibility and prioritizes
Rural Areas. Redefines eligibility and prioritizes
loan applications.
loan applications.
Section 6031: Directs the Secretary to prepare a
Section 6112: Directs the Comptroller General to
report describing a comprehensive broadband
prepare a report describing federal assistance for
strategy.
broadband infrastructure and RUS’s decision
making criteria for broadband applications.
Section 6018: Grants for National Oceanic and
Atmospheric Administration Weather Radio
Section 6026: Grants for National Oceanic and
Transmitters.
Atmospheric Administration Weather Radio
Transmitters.
Section 6102: Expansion of 911 Access. Wider
access to 911 emergency telephone service.
Section 6107: Expansion of 911 Access. Wider
access to 911 emergency telephone service.
Grants to Broadcasting Systems. Grants for
Section 6028: Assists rural public television stations
Section 6016: Assists rural public television
public television broadcasting in
in making the transition from analog to digital
stations in making the transition from analog to
predominantly rural areas.
broadcast equipment.
digital broadcast equipment.
Provides loans and grants to schools and
Section 6029: Reauthorizes Telemedicine and
Section 6302: Reauthorizes Telemedicine and
medical facilities for acquiring advanced
Distance Learning Services in Rural Areas.
Distance Learning Services in Rural Areas.
telecommunication technologies to support
Renames the program the Telemedicine, Library
medical and educational functions in rural
Connectivity, Public Television, and Distance
areas.
Learning Services in Rural Areas.
Regional Development
Authorizes a Delta Regional Authority (DRA).
Section 6019: Authorizes appropriations for the
Section 6029: Authorizes appropriations for the
Federal and state funding for 240 distressed
DRA through 2012.
DRA through 2012.
counties across 8 states in the Mississippi
Delta.

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CRS-15
Current Law (Title VI of
Title VI Sections, Farm, Nutrition, and Bioenergy
Title VI Sections, Food and Energy Security Act
2002 Farm Bill, P.L. 107-171)
Act of 2007 (H.R. 2419)
of 2007 (S.Amdt. 3500)
Authorizes a Northern Great Plains Regional
Section 6020: Reauthorizes and amends the
Section 6030: Reauthorizes and amends the
Authority to make grants and loans and
Northern Great Plains Regional Authority.
Northern Great Plains Regional Authority.
implement a regional development plan.
No provision
No provision
Section 6034: Authorizes a new Northern Border
Economic Development Commission. Provides
$40 million annually for FY2008-FY2012.
No provision
Section 6032: Directs the Secretary to prepare a
No provision
report on railway issues in the transportation of
agricultural products and renewable fuels.
Authorizes a program to restore historic barns.
Section 6023: Historic Barn Preservation Program.
Section 6025: Historic Barn Preservation Program.
To preserve barns eligible for inclusion on the
To preserve barns eligible for inclusion on the
National Register of Historical Places.
National Register of Historical Places.
Authorizes a program for training emergency
Section 6026: Reauthorizes and amends the Rural
No provision
personnel. Funded by mandatory spending.
Firefighters and Emergency Personnel Grant
Program. Provides discretionary funding of not
more than $30 million annually.
Authorizes a grant program to support value-
Section 6027: Reauthorizes and amends the Value-
Section 6401: Reauthorizes and amends the Value-
added projects for agricultural commodities.
Added Agricultural Product Market Development
Added Agricultural Product Market Development
Grants made to agricultural producers to add
Grants. Authorizes and reserves funding for “mid-
Grants. Authorizes. Priority for beginning farmers
value to their commodities. Provides new
tier value chains.” Provides $20 million in
and ranchers and disadvantaged farmers and
definitions of value-added to include any
mandatory funding annually from the USDA’s
ranchers. Reduces the maximum grant amount.
process that increases the value of an
Commodity Credit Corporation.
Provides such sums as necessary.
agricultural product (e.g., organic production).

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