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USDA looks to change definition of “rural” for funding

The USDA announced a proposal in February that would change the definition of what rural means. The change in definition would allow places with populations of fewer than 50,000 people to apply for rural development funding programs.

A new definition means smaller communities would now contend with larger communities for the same rural funding programs. This could potentially impact how funds may shift away from areas that are in greater need of funding.

In an article by AgWired.com , the House Agriculture Committee Chariman, Frank Lucas, shared, “We are disappointed in USDA’s proposals to shift funding away from the most rural areas by inflating the definition across the board…This will result in smaller communities competing with larger and more urban areas for funding.”

Currently, the limit on populations that are defined as rural are set at 10,000 for rural utilities programs and 20,000 for community facility and housing programs. The new definition would set a population of 50,000 as the limit for all programs.

The USDA, in the AgWired.com article, states it is in favor of the definition change in hopes that it will remove confusion over what constitutes a rural area and would encourage more multi-jurisdictional collaboration.

According to the USDA report , the change in definition to 50,000 would affect 40-plus rural development programs. Funding for the USDA rural development programs is currently through the six month Continuing Resolution that is set to expire at the end of March.

For more information about funding information in your area, contact your local USDA Rural Development staff .

Will the change impact the community you live in? How do you feel about it?

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