# Presentation: 705744

## Rural Development NACS/NASPZone MeetingFebruary 27-28, 2003Spokane, Washington

**William F. Hagy III**
**Deputy Administrator, Business Programs**
**(202) 720-7287**

**USDA, RURAL DEVELOPMENT**
**RURAL BUSINESS-COOPERAIVE SERVICE**
**BUSINESS PROGRAMS**

## Business Programs Fiscal Year (FY) 2002 Program Results

- 1,562 loan/grants - $959.8 million
- 76,300 jobs created/saved
- 8,464 businesses impacted
- 791 preapplications/applications - $769 million pending at FY end.

## Business ProgramsFY 2003 Budget

- _Program_			_Funding Level_
- B&I Guaranteed	$900    million + $309  million carry over
- RBEG			$47.99 million
- RBOG			$  4      million
- IRP			$40      million
- REDL			$15      million
- REDG			$  4      million

## FY 2003 Budget (continuation)

- Earmarks
- EZ/EC/Reap, Mississippi Delta, and Native American
- Passenger Transportation
- Mississippi Delta Memorandum of Agreement
- 1940-L

## FY 2004 President’s Budget Business Programs

- _	__Program_		_Funding Level_
- B&I Guaranteed	$602 million
- IRP			$  40 million
- RBEG		$  44 million
- RBOG		$    3 million
- REDL		$  15 million
- REDG		$    4 million

## FY 2004 President’s Budget (continuation)

- Pilot Asset Sale
- Conducted jointly with FSA
- $5 million proceeds anticipated each from Rural Development and FSA

## Farm Bill Implementation Update

- Definition of “Rural and Rural Area” published - B&I, RBEG, and RBOG
- Interim final rule in clearance:
- B&I Assistance in non-rural areas
- Cooperative Stock Purchase Program
- $40 million vs $25 million loan limitation for certain types of businesses
- Simplified application for B&I

## Farm Bill Implementation Update (continuation)

- VADG
- 291 recipients - $57 million - 43 States
- 10 million for bioenergy (7 million - ethanol)
- Final regulations published - late June to early July
- FY 2003 funding - $40 million (mandatory)

## Farm Bill Implementation Update (continuation)

- Purpose:  Develop new and emerging technologies for use of biomass
- Eligible Recipients:**  **Individuals, corporations, farm cooperatives, associations, national laboratories, institutions of higher education, State/local energy agencies/offices, Indian Tribes, or consortiums compromised of any of/or the above.

- Energy TitleSection 9003 - Biorefinery Development Grant

## Farm Bill Implementation Update (continuation)

- Cost sharing:  Maximum of 30 percent
- Budget outlook:  Discretionary funding

- Energy TitleSection 9003 - Biorefinery Development Grant

## Farm Bill Implementation Update (continuation)

- Purpose:  Assist farmers, ranchers and rural small businesses with energy audits and using renewable energy technologies
- Eligible Recipients: ** **State energy/agriculture offices, regional or State-based energy organizations, and Native American energy organizations, institutions of higher learning, rural electric cooperatives or utilities, non-profit organizations, and other entities determined by the Secretary of Agriculture.

- Energy Title - Section 9005
- Energy Audit and Renewable Energy Development Program

## Farm Bill Implementation Update (continuation)

- Cost-sharing:  *25% Match*
- Budget outlook:  *Discretionary funding*

- Energy Title - Section 9005
- Energy Audit and Renewable Energy Development Program

## Farm Bill - Energy Title 

- Section 9006 - Renewable Energy Systems
- and Energy Efficiency Improvements Program

- Establishes a grant, loan, and loan guarantee program to assist eligible farmers, ranchers, and rural small businesses in purchasing renewable energy systems and for making energy efficiency improvements.

## General Provisions

- Grant amount not to exceed 25 percent of activity funded.
- Combined loan/grant not to exceed 50 percent of cost of activity funded.

## Partnering for 

-   Rural Development
-   Farm Services Agency
-   Natural Resource and Conservation Service
-   Forest Service
- Department of Energy
- Environmental Protection Agency

- Partnering for
- America’s Future

## Funding Availability

- Fiscal Years 2003-2007

- $23 Million per year

## Projected Timeline For Implementation - FY 2003

-  Awardees Agreement to Conditions and
-       Fund Obligation - 09/30/03

*** ***Notice of Funding Availability Published - 03/31/03

-  60 Day Application Period

-  Announcement of Awards - 07/31/03

-  Awardees Advised of Conditions for
-        Fund Obligation - 08/29/03

## Business Programs Initiatives Updates

- RDAPTS
- Moody’s software
- National Training

## Business Programs Initiatives Updates (continuation)

- Intranet Enhancements
- Advisory Committee
- Accreditation Program

## Questions?