February 9, 2022
Farm Bill Primer: Rural Development Title
The rural development title of the farm bill reauthorizes,
lack sufficient broadband access. For direct loans, the law
amends, and creates programs administered by the U.S.
required that at least 50% of households in the proposed
Department of Agriculture (USDA) Rural Development
service area lack sufficient broadband access. The law
agency. The rural development title also addresses
increased the threshold for sufficient broadband access
emerging issues affecting rural communities.
from 4 megabits per second download, 1 megabit per
second upload (4/1 Mbps) to 25/3 Mbps. In the 2018 farm
The Agriculture Improvement Act of 2018 (2018 farm bill,
bill, Congress raised the authorization of annual
P.L. 115-334) extended authorization for most of the
appropriations to $350 million from FY2019 to FY2023.
programs in the rural development title from FY2019
through FY2023, meaning the authorization for
The 2018 farm bill also codified the Community Connect
appropriations for these programs will expire after
Program. The Community Connect Program offers grants to
September 30, 2023. This In Focus provides background
eligible entities to help provide broadband service to rural,
information on the rural development title of the 2018 farm
economically challenged communities where service does
bill, selected provisions within it, and issues that Congress
not exist. Congress authorized annual appropriations of $50
may consider if it drafts a future farm bill.
million for the program from FY2019 to FY2023.
Previously, the Community Connect Program had been a
Background
pilot program authorized through annual appropriations
Since 1973, omnibus farm bills have included a rural
bills.
development title, which has included USDA Rural
Development programs focused on rural utility systems
The Distance Learning and Telemedicine Program provides
(i.e., water, waste disposal, electricity, broadband), rural
grants to help rural communities gain the technology and
business, and rural housing. These programs are
training necessary to connect educational and medical
administered by the USDA Rural Business-Cooperative
professionals with students, teachers, and patients in rural
Service, USDA Rural Utilities Service, and USDA Rural
areas. In the 2018 farm bill, Congress increased
Housing Service. For additional information on USDA
authorizations for annual appropriations to $82 million
Rural Development programs, see CRS Report R46912,
from FY2019 to FY2023. The 2018 farm bill set aside not
USDA Rural Broadband, Electric, and Water Programs:
less than 20% of the funding for the Distance Learning and
FY2022 Appropriations.
Telemedicine Program for telemedicine projects that
provide treatment services for substance use disorder from
Most USDA Rural Development programs rely on
FY2019 to FY2025 (which is two years longer than most
discretionary funding, which Congress authorizes in farm
programs and initiatives that are reauthorized until
bills and funds through the annual appropriations process.
FY2023).
One exception is the Value Added Producer Grant Program,
which is part of the Local Agriculture Market Program
The 2018 farm bill also directed USDA to consult with the
(LAMP). LAMP received $50 million per year in
National Telecommunications and Information
mandatory funding starting in FY2019 in the horticulture
Administration (NTIA) to verify applicant eligibility for
title (Title X) of the 2018 farm bill.
USDA broadband programs using broadband assessment
and mapping data provided by NTIA. In addition, the 2018
2018 Farm Bill Provisions
farm bill directed USDA to coordinate with the Federal
Below is a description of selected provisions in the rural
Communications Commission (FCC) to ensure no
development title of the 2018 farm bill pertaining to rural
duplication across USDA and FCC programs.
broadband, rural water and waste disposal, and rural
business, along with other selected provisions.
Rural Water and Waste Disposal
The 2018 farm bill raised the maximum amount of project
Rural Broadband
financing for the Water and Waste Disposal Revolving
The 2018 farm bill added a grant component to the Rural
Loan Fund from $100,000 to $200,000 per project. The
Broadband Program. This program provides assistance to
fund provides grants to nonprofit organizations to start
help construct, improve, and acquire facilities and
revolving funds that provide loans for the pre-development
equipment needed to provide broadband service to rural
costs of water and wastewater treatment projects and short-
areas. Prior to the 2018 farm bill, the program was limited
term capital improvement projects not part of the regular
to direct loans and loan guarantees. To date, Congress has
operations and maintenance of the systems in rural areas.
provided funding for direct loans and loan guarantees but
not for grants. For grants, the 2018 farm bill required that at
The 2018 farm bill also increased the maximum loan
least 90% of households within the proposed service area
amount for certain projects under the Emergency and
https://crsreports.congress.gov
Farm Bill Primer: Rural Development Title
Imminent Community Water Assistance Program from
Amended the definitions of rural and rural area used to
$500,000 to $1 million per project. This program provides
determine eligibility in many USDA rural development
grants to help communities prepare for or recover from an
programs (7 U.S.C. §1991(a)(13)). Rural and rural area
emergency that threatens the availability of safe drinking
are areas in which the population fits within a certain
water. The law authorizes appropriations of $50 million per
population threshold (e.g., areas of 50,000 or fewer
year from FY2019 to FY2023.
residents). The 2018 farm bill states that when
determining whether an area is “rural,” the following
The 2018 farm bill also reauthorized the Household Water
persons are to be excluded: (1) incarcerated populations
Well Systems Program under a new name: Rural
on a long-term or regional basis, and (2) the first 1,500
Decentralized Water Systems Program. The program
of people living in housing on military bases.
provides grants to intermediaries to create revolving funds
that facilitate increased access to clean, reliable water and
Authorized USDA to refinance electric and telephone
septic systems for rural households. Congress also provided
loans made by USDA’s Rural Utilities Service.
the authority for intermediaries to offer subgrants, in
addition to subloans, to eligible homeowners in rural areas.
Prioritized Community Facilities Program direct loans
and grants for entities to develop essential community
Rural Business
facilities that provide substance use disorder prevention
The 2018 farm bill authorized USDA to make grants to
services, treatment services, and recovery services from
entities that provide technical assistance and training to
FY2019 to FY2025.
support applications for Rural Business-Cooperative
Service programs. Eligible grant purposes include assisting
Considerations for Congress
communities in identifying economic development needs
and preparing required reports and surveys.
ReConnect Program
Congress provided the underlying authority for USDA to
USDA’s Intermediary Relending Program provides direct
establish a new broadband loan and grant pilot program
loans at 1% interest to intermediaries that finance business
through the passage of the Agriculture, Rural Development,
facilities and community development projects in rural
Food and Drug Administration, and Related Agencies
areas. The 2018 farm bill limited the maximum amount of a
Appropriations Act, 2018 (P.L. 115-141). Since then,
loan made by the intermediary to the lesser of $400,000 or
Congress has reauthorized this pilot program, known as the
50% of the amount that USDA loaned to the intermediary.
ReConnect Program, through annual appropriations acts.
Congress might consider to what extent it may address the
The 2018 farm bill established the Rural Innovation
ReConnect Program in a future farm bill.
Stronger Economy (RISE) Program to create job
accelerators to assist distressed rural communities in
Program Duplication
creating high-wage jobs and accelerating the formation of
The ReConnect Program and Rural Broadband Program
new businesses. The 2018 farm bill directed USDA to
have similar goals—providing support for broadband
provide grants for job accelerators in no fewer than 25
service deployment in rural areas. Some stakeholders
states and establish a state matching requirement of 20% of
believe the programs are duplicative and should be
the project cost.
combined. Others contend that the two programs should
remain separate but that Congress could consider further
Selected 2018 Farm Bill Rural Development
defining their roles to make the two programs more distinct.
Programs
As Congress considers a future farm bill, it could evaluate
the extent of any duplication between these two programs
Rural broadband programs help deploy broadband to
and possible ways to address it.
rural areas and encourage the use of rural broadband.
Community Connect Program, Distance Learning and
Rural Health Challenges
Telemedicine Program, Rural Broadband Program
A 2020 USDA Economic Research Service report found
Rural water and waste disposal programs help develop
that underlying conditions in rural areas make rural
drinking water and waste disposal systems in rural
populations more vulnerable to severe illness or death from
communities.
Coronavirus Disease 2019 (COVID-19) than metro
populations. These conditions include age (older
Emergency and Imminent Community Water Assistance
populations), underlying health problems, lack of health
Program, Rural Decentralized Water Systems Program,
insurance, and distance from hospitals with intensive care
Water and Waste Disposal Revolving Loan Fund
units. As Congress debates another farm bill, it may
Rural business programs enhance business creation and
consider whether USDA Rural Development programs
growth in rural communities.
could play a role in facilitating health services for rural
Intermediary Relending Program, Rural Innovation
populations facing health challenges, such as COVID-19.
Stronger Economy (RISE) Program
Lisa S. Benson, Analyst in Agricultural Policy
Selected Other Rural Development Provisions
IF12038
The rural development title in the 2018 farm bill also
includes the following three provisions, among others.
https://crsreports.congress.gov
Farm Bill Primer: Rural Development Title
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https://crsreports.congress.gov | IF12038 · VERSION 1 · NEW