2018 Farm Bill Primer: Rural Development Programs

2018 Farm Bill Primer: Rural Development Programs

May 23, 2019
2018 Farm Bill Primer: Rural Development Programs
Title VI of the enacted 2018 farm bill (Agriculture
permit any area defined as rural between 1990 and 2020 to
Improvement Act of 2018, P.L. 115-334) includes
remain so classified until publication of the 2030 decennial
provisions that address rural and regional development
census.
issues. While other legislation has significant implications
for rural areas and rural residents (e.g., transportation
New Rural Development Provisions
initiatives, environmental regulation, finance and taxation,
The 2018 farm bill generally reauthorizes or amends long-
Medicare, Social Security), Congress has used periodic
standing programs under the ConAct and the Rural
omnibus farm bills to address emerging rural issues as well
Electrification Act of 1936 (7 U.S.C. §901 et seq.). New
as to reauthorize a wide range of rural programs
programs are also authorized under these statutes.
administered by the U.S. Department of Agriculture’s
(USDA) rural development mission agencies: Rural
Rural Access to High-Speed Broadband
Utilities Service, Rural Business-Cooperative Service, and
 The bill authorizes a new grant program for rural
Rural Housing Service. Although the extent of overlap
broadband deployment in addition to loans and loan
between federal agencies and programs targeting rural areas
guarantees. Increases broadband minimum speed to 25
has been of concern to some rural policy observers, USDA
megabits per second (Mbps) downstream and 3 Mbps
Rural Development has primary federal statutory
upstream speed. Establishes buildout requirements and
responsibility for rural development and has the largest
makes rural areas with an incorporated city of 20,000 or
number of programs providing assistance to rural areas.
more eligible for direct broadband loans and grants
(§6201).
The Rural Development title of the 2018 farm bill (Title VI)
provides assistance for rural business creation and
 Other broadband provisions provide incentives to bring
expansion and for rural infrastructure along with traditional
broadband service to hard-to-reach areas by establishing
assistance for housing, electrical generation and
a method for calculating service points per road mile as
transmission, broadband, water and wastewater, and
a density measure (§6201).
economic and institutional capacity in local communities.
In previous farm bills, Congress has also supported
 Prioritizes broadband loans and grants to unserved rural
innovative and alternative business development (e.g.,
areas with no residential broadband service, rural
bioenergy, value-added production, local food production)
communities with fewer than 10,000 permanent
and innovative mechanisms to finance it (e.g., the Rural
residents, rural communities experiencing outmigration
Microentrepreneur Assistance Program). The 2018 farm bill
that have developed a strategic community investment
amends and reauthorizes a wide variety of existing rural
plan, communities with high percentage of low-income
business programs, rural infrastructure development,
families, and applications that provide the maximum
housing and community facilities and authorizes several
level of broadband service to the greatest proportion of
new initiatives.
rural households in a proposed service area (§6201).
What Is Rural?
 Increases annual appropriated funding for broadband
The 2002 farm bill (P.L. 107-171, Section 6020) amended
deployment from $25 million in FY2019 to $350
the Consolidated Farm and Rural Development Act of 1972
million in FY2023 (§6201).
(the ConAct; 7 U.S.C. §1926 et seq.) to define rural and
rural area as any area other than a city or town with a
The bill also reauthorizes the Rural Gigabit Network Pilot
population of more than 50,000 and the urbanized area
Program—and renames it the Innovative Broadband
contiguous and adjacent to such a city or town. Eligibility
Advancement Program (§6203)—establishes a Rural
for some programs have statutory population limits much
Broadband Integration Working Group (§6214), and creates
less than 50,000 (e.g., Water and Waste Water loans and
a Task Force for Reviewing the Connectivity and
grants—10,000; Community Facilities—20,000). In
Technology Needs of Precision Agriculture (§12516). The
awarding loans and grants, regulations may also prioritize
enacted bill also authorizes a new Middle Mile
rural areas with even smaller populations and/or household
Infrastructure Program (§6201), with authorized
income limits. The 2018 farm bill amends this definition of
appropriations of $10 million annually (FY2019-2023), to
rural to exclude from population thresholds individuals
construct, improve, or acquire infrastructure connecting
incarcerated on a long-term or regional basis. The enacted
rural Internet service provider networks with broadband
bill also amends the definition to exclude the first 1,500
Internet backbone networks (§6202).
individuals residing in on-base military housing. The
enacted bill further amends the Housing Act of 1949 to
https://crsreports.congress.gov

2018 Farm Bill Primer: Rural Development Programs
The 2018 farm bill also reauthorizes the Community
from $100,000 to $200,000 (§6403). The enacted law
Connect Broadband Program (§6204), providing grants to
increases appropriations for rural water and wastewater
underserved areas to support enhanced delivery of health
technical assistance (§6404) and prioritizes training to
care, education, and public services. Authorized annual
address contaminated drinking water and surface water
appropriations are $50 million (§6204).
supplies. The 2018 farm bill also modifies the Rural
Business Investment Program concerning business
The 2018 farm bill further directs USDA to coordinate with
investment companies controlled by Farm Credit System
the assistant secretary of the National Telecommunications
institutions (§6427). Also, under the Rural Economic
and Information Administration for assessment and
Development Loan and Grant Program, the 2018 farm bill
mapping capabilities (§6212). This same provision requires
terminates the deposit authority of “cushion of credit”
USDA to coordinate with the Federal Communications
borrower accounts and, changes the interest paid on the
Commission (FCC) to ensure that loans or grants do not
accounts to the applicable one-year Treasury rate after
conflict with universal service high-cost support provided
FY2021 rather than a 5% rate established in the original
by FCC.
statute (§6503).
Rural Health Issues
The bill also does the following:
The 2018 enacted farm bill authorizes USDA, in
 Authorizes Rural Business-Cooperative Service
consultation with public health officials, to announce a
Programs Technical Assistance and Training to help
temporary reprioritization on a national or multistate basis
rural communities better access programs administered
of assisting rural communities in responding to a
“significant public health disruption”
by the Rural Business-Cooperative Service. Gives
(§6101). Up to 20%
priority to persistent-poverty counties and other high-
of funds for rural development programs may be targeted
poverty communities. Authorizes appropriations of up to
toward responding to such a public health disruption.
$5 million annually (§6419).
The 2018 farm bill redirects program funds of existing rural
 Establishes the Rural Innovation Stronger Economy
development programs to target a range of rural health
Grant Program for a “rural jobs and accelerator
issues. Focusing on rural substance abuse, the provision
partnership” that is designed to organize key community
directs USDA to set aside 20% of the Distance Learning
and regional stakeholders to focus on shared goals and
and Telemedicine Program to support projects that provide
needs of industry clusters that are existing, emerging, or
treatment for substance abuse disorders and increases
declining. USDA is authorized to provide grants
appropriated funding for the program to $82 million
($500,000 to $2 million) for job accelerators in at least
annually from $75 million (§6101). The 2018 farm bill also
25 states (§6424).
gives priority to applications for Community Facilities
 Establishes the Council on Rural Community
funding to provide services for rural residents designed to
Innovation and Economic Development to coordinate
prevent, treat, and assist in the recovery from substance
federal programs directed at rural communities,
abuse disorders (§6101). Under the Rural Health and Safety
maximize federal investments, and promote innovation
Education Program grants, the 2018 farm bill also directs
to resolve rural and regional issues. Council
USDA to prioritize treatment projects aimed at substance
membership is to be composed of the heads of 26
abuse disorder (§6101). These programs and funding carve-
federal departments, agencies, and offices (§6306).
outs are to remain in force until FY2025.
 Authorizes the Rural Electrification Act to permit loan
Other 2018 farm bill provisions that address rural health
guarantees to be issued for cybersecurity and grid
issues are to permit the refinancing of certain debt
security improvements (§6507).
obligations of rural hospitals if the assistance would help
 Eliminates the Northern Great Plains Regional
preserve access to a health service in a rural community or
Authority, which had developed regional plans for
improve the financial position of the hospital (§6103). A
infrastructure and economic development in five Great
provision in the 2018 farm bill’s Research title authorizes a
Plains states.
Farm and Ranch Stress Assistance Network (§7412). The

provision authorizes training and workshops for affected
Directs USDA to reestablish the Undersecretary of
farmers and ranchers and also permits the network to enter
Agriculture for Rural Development position as a
into contracts with community-based direct service
permanent mandatory position, reversing the Trump
Administration’s
organizations to initiate and expand programs for farmers
2017 reorganization plan that created a
and ranchers.
Special Assistant to the Secretary for Rural
Development.
Other Rural Development Title Provisions

The 2018 farm bill also includes other provisions to
reauthorize and/or amend loan and grant programs that
Tadlock Cowan, Analyst in Natural Resources and Rural
provide assistance for rural water and wastewater
Development
infrastructure, business development and retention, and
IF11225
community and regional development. The maximum
amount of project financing for water projects is raised

https://crsreports.congress.gov

2018 Farm Bill Primer: Rural Development Programs

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you
wish to copy or otherwise use copyrighted material.

https://crsreports.congress.gov | IF11225 · VERSION 1 · NEW