For the past several years 

employes and families have 

gotten together for a ‘Sod 

Party” to put the finishing 

touches on the properties. 

For the past thirteen years Lloyd “Rob” Byers, wife Kelly, son Robert and daughter Kelly 

Sue have been living in a single wide mobile home on a rented lot. The children are 

becoming young adults and the home was no longer meeting the needs of the family. 

The Byers’ son Robert has been diagnosed as autistic and will probably live with his parents 

for the remainder of his life.

The mobile home has been deteriorating over the past few years due to its age. They were in 

need of a larger, safer and more efficient home. 

Rob became disabled due to a work injury in 2005 but the family managed to keep up 

their obligations and Rob was eventually placed on disability. Rob called Sara Varner, SFH 

Loan Specialist who started working on a loan for a new home. The plan was to place a 

manufactured home on a lot they owned. Rob worked very hard at getting bids together, 

choosing a house plan and preparing for the contruction workers. The Byer’s moved into their new home just three months after the 

start of construction.

Business Programs

Business & Industry Loan Guar. $35,821,997

Business Enterprise Grants $847,200

Business Opportunity Grants $57,000

Value Added Producer Grants $502,680

Section 9006 Energy Grants $287,706

TOTAL $37,516,583

 

Community Programs

Water & Waste Loans $24,835,000

Water & Waste Grants $6,761,000

Water & Waste Guar. Loan $ 750,000

Pre-Development 

 Planning Grants $20,000

Solid Waste Management Grant $50,000

Emergency Community Water

 Assistance Grants $650,000

Native American Set Aside 

 Grant $1,000,000

Community Facilities (CF) Loans $876,000 

 CF Guaranteed Loans $537,000

 CF Grants $159,450

RCDI Grant $52,660

TOTAL $35,691,110 

Housing Programs

Single-Family Housing $125,847,329

 including Direct & Guaranteed

 loans and grants 

Mutual Self-help Housing Grant $337,920

Housing Preservation Grant $59,740

Housing Repair Loans $177,784

Housing Repair Grants $318,236

Rural Rental Programs $7,339,013

TOTAL $134,080,022

Grandsons continue family tradition 

of creating jobs ....doing so in Energy 

Efficient ways

Within a few years of purchasing Gordon Paving, Inc. - the paving 

company originally started by their Grandfather - brothers Brian 

and Brandon Hansen made strategic real estate and equipment 

acquisitions strengthening their overall financial position. The first 

expansion was the purchase of gravel pits allowing Gordon Paving, Inc. to 

control their aggregate costs while simultaneously adding a complimentary 

profit center, Northwest Sand and Gravel, Inc. The second involved buying 

the land adjacent to their gravel pits allowing the relocation of Gordon 

Paving, Inc. and providing room for expansion of another profit center, 

Canyon Equipment & Service, LLC. 

 Agri-Access, financed several loans which USDA Rural Development 

backed with guarantees through its’ Business and Industry (B&I) Guaranteed loan program. Funds were used to facilitate land & 

equipment purchases needed for relocating their asphalt plant and expanding their office/maintenance shop, while simultaneously 

retiring existing real estate & equipment loans, saving nearly $145,000 per year in debt 

service payments. 

After competing nationally, they were awarded a $250,000 Section 9006 Energy Efficiency 

Grant to replace older asphalt hot plant equipment with new energy efficient asphalt hot 

plant equipment. The updated technologies and the design of the new hot plant equipment 

allows recycled asphalt product to be used in production of new asphalt, and has the ability 

Specialty Spuds Create Jobs

As the largest producer of fingerling potatoes in Idaho and the 3rd largest producer nationwide, Southwind Farms, 

Inc, is positioned to capitalize on the potential of the emerging specialty potato market. In an effort to further expand 

their share of this niche market, Southwind Farms faced two challenges. First, they were unable to meet the 

existing demand for their product due to the limitations in their processing capacity. Second, they needed to expand the 

consumers’ awareness of their product and build loyalty by establishing brand recognition of their gourmet potato brand. 

 Through our Business and Industry (B&I) Guaranteed Loan program, USDA Rural Development backed a $400,000 

equipment loan financed by Zions First National Bank. The loan was used to purchase specially designed production 

and packaging equipment modified for the reduced size and delicacy of the fingerling potatoes, providing the 

automation required to expand Southwind Farms processing capacity. 

 After competing nationally as an independent producer, solely owned and 

controlled by agricultural producers owning a majority ownership interest in their 

product, Southwind Farms, LLC, was selected to receive $298,000 in matching 

funds under USDA’s Value-Added Producer Grant program in 2008. These funds 

will be used to market the varieties and quality of Southwind Farms Gourmet 

Select Brand directly to retail and food service customers in order to expand the 

demand for their specialty potato and realize a greater return for the value added 

specialty potato.

 Southwind Farms originally started growing only a couple acres of fingerling 

potatoes and processed each by hand. Now, with the specially adapted 

equipment, they have increased their production to 170 acres and have created 

15 jobs in the rural town of Heyburn, Idaho, where jobs in the food processing 

industry have been declining in recent years. 

 Value-added efforts such as Southwind Farms, Inc. not only help producers keep more of the profits derived from their efforts, but 

they also help to keep more dollars in rural areas of the nation.

to use waste motor oil as the source of energy.

The Hansen’s estimate the consolidation of their administrative, 

asphalt operations, and maintenance shop next to their sand and 

gravel operations will save $160,000 a year in truck operating 

expense alone. In addition to the environmental benefits, the 

new energy efficient hot plant should save $230,000 in fuel costs. 

When the shop expansion is complete, additional mechanics 

will be hired to service other heavy construction equipment, 

further diversifying their income streams and reducing per repair 

overhead costs. The Hansens report that 20 jobs will be created 

and 100 saved (all at or above 256% of the minimum wage) by 

enhancing the efficiency and profitability of the operations. The 

ultimate benefit, however, is to the rural community of Twin Falls. 

The Hansen’s commitment to build a financially strong competitive business strengthens their ability to provide stable, good 

paying jobs for the community - just as their grandfather, Gordon Hansen, did 45 years ago. 

 Timely Assistance for City of East Hope

Strong Creek, on the northeast shore of Lake Pend Oreille, experienced a 

flash flood event late in May 2008 that severely damaged the diversion 

dam that supplies the City of East Hope with water. Not only is this the 

only source of water for the City, it is also critical habitat for the endangered 

Bull Trout fish. The road that provides access to the dam was also washed 

out in several places exposing the water line that runs to the treatment plant. 

This forced the City to immediately ration water for only necessary household 

use, and begin the search for funding to repair the damage. Volunteers 

attempted to provide a temporary water supply by wading through the frigid 

water to remove the debris from the intake at the diversion dam. Large 

boulders, too big to move by hand, hampered their efforts. Later a backhoe 

was able to get around the washed out areas to complete the intake cleanup. 

At a meeting in early June it was determined that the city might qualify for 

an Emergency Community Water Assistance Grant (ECWAG) through USDA 

Rural Development and an Imminent Threat Grant through Idaho Department 

of Commerce (IDOC). The City started the process by hiring James A. Sewell 

and Associates to complete the engineering of the project and by contacting 

Panhandle Area Council and USDA Rural Development for assistance with the 

grants. The engineer and the City worked diligently to put together all of the 

necessary documents for the application. Timing was very critical since ECWAG 

funding would not be available after the end of June and staff in Coeur d’Alene 

and the State Office all worked together to process the application. USDA Rural 

Development was then able to assist the community by approving a $500,000 

grant. In addition, the City was awarded a $100,000 Imminent Threat Grant from 

IDOC. These funds will provide the City with the ability to rebuild the access 

road and to construct a new diversion dam so that the 170 citizens of this rural 

community will have a clean, reliable water source. During road reconstruction 

in the fall of 2008, Idaho Department of Fish and Game personnel visited the site and relocated 

several Bull Trout by shocking them and then transplanting them to an area in the stream that 

was not affected by the construction. This allowed the engineer better access so that design 

work for the dam could be completed. The project could not have been completed without the 

cooperation of the following agencies; IDOC, Idaho Department of Fish and Game, US Fish 

& Wildlife Service, US Army Corp. of Engineers, and Idaho Deptartment of Water Resources.

Mercy Housing Idaho has been working with families and the USDA 

Mutual Self-Help Housing Program for eight years. In the Spring of 

2009 they plan to celebrate their 100th home under this program. 

Currently they have 10 homes under construction in Hansen, Idaho 

and have already planned the next “group build” in nearby Filer, Idaho. 

 Fulfilling A Mothers Dream

I

f you have ever experienced water shortages on the 4th of July with a house full of in-laws, you know that 

fireworks are not the only things that might explode. When the friends, family, and residents of Jughandle Estates 

gathered in their homes to celebrate the 4th of July 2007 their water pressure and water supply came up short. 

Jughandle Estates is a residential subdivision located 7 miles southeast of McCall, Idaho just beneath Jughandle Mountain.

 For the past couple of years they have been struggling to make improvements and secure financing for their water system, 

which has limited capacity and pressure. They initially tried to drill a well within subdivision boundaries but because the 

subdivision was developed on top of granite rock formations, the attempts at drilling 2 production wells and 1 test well failed. 

With the added cost of purchasing an offsite lot and constructing a transmission line to connect to the offsite well, and 

the uncertainty of finding a productive well site, financing became hard to find. After being turned down by several banks, 

Jughandle was directed to the USDA-RD guarantee program. USDA Rural Development was able to guarantee a $750,000 

loan with Idaho First Bank in McCall, that will enable Jughandle Estates to make the necessary improvements. 

A new well was drilled and results showed the well could produce double the anticipated water requirement. Thanks to Rural 

Development the only fireworks going off in Jughandle next 4th of July will be to celebrate Independence Day.

Excess Water Found in Jughandle

Upper Valley Community Health Services, Inc. (UVCHS) 

USDA Rural Development provided assistance through a combination of programs to UVCHS for the establishment of 

a new health clinic located in St. Anthony. Project funding included a $280,000 Direct Community Facilities (CF) loan, 

a $50,000 CF Grant and a $102,000 CF Loan Guarantee for a loan made by Citizens Community Bank. The project 

includes nine examination rooms, procedure room, a laboratory, a waiting area, four rest rooms, a reception/billing area, Xray equipment, and admin. offices. The current design of the building will accommodate three doctors or mid-level providers 

as the need arises. The heath care center is open to anyone seeking services. The center is capable of accepting all health 

insurances, Medicare, and Medicaid. Uninsured patients, who are qualified, are charged for services on a sliding scale. 

The picture at left shows the 

break in the Strong Creek 

diversion dam.

Building a Sense of Community

The Self-Help Homeownership Program allows families 

and people with low and moderate incomes to build their 

own homes, and in return, receive affordable financing. 

Because of this wonderful program Shandele Kestie 

and her 3 sons, ages 5, 12 and 14, went from renting 

a 2-bedroom, one-bathroom apartment in Hansen, 

Idaho to owning a new, affordable, 4-bedroom home.

After spending at least 35 hours a week building her 

home, the Kestie’s were one of seven families that 

moved in last winter. A feature of the self-help program 

is that none of the families in the program are allowed to 

move into their house until all of their neighbors’ homes 

are finished. In addition to the 35 hours a week spent 

building, many of the families work full-time jobs, but as 

neighbors work together to complete the homes they 

develop a sense of community. For Shandele, the sense 

of community became a very big part of the satisfaction 

of owning her own home, “I couldn’t ask for better next-door neighbors,” she said.

Shandele was so impressed with Mercy Housing and the self-help program she pursued 

an opportunity to work for the non-profit organization. She is now a part of the Mercy 

Housing Team, working in the Self-help Homeownership Office in Twin Falls, Idaho.

Denise Hanebuth had always wanted a place to call home. A home where Denise and 

her young daughter Natasha would feel safe. They had been living in rental assistance 

properties for some time when circumstances put her and her daughter into less 

than desirable living conditions, finally ending up inside the garage at her fathers place of 

business. It was small, cold and inadequate for their needs and Denise thought there was no 

way out of her situation and felt she was never going to be able to ever own a home.

Denise decided to seek help from Habitat for Humanity after seeing a flyer in the local 

laundromat. They eventually told her that she would be eligible for a home but that it could 

take up to two years. A local worker for Habitat for Humanity then called the USDA office 

in Coeur D’Alene, Idaho and spoke to loan specialist Joseph Cool. He explained Denise’s 

current living conditions and asked if there was anything USDA could do to help Denise 

get into a home much sooner. Joseph was more than happy to see what he could do and arranged to meet with Denise. They 

discussed the 502 Direct Loan Program and Denise filled out a pre-qualification form. After the initial pre-qualification Denise had 

to do a little leg work in order to qualify for the home loan but with patience and determination Denise acomplished everything that 

Joseph had asked her to do and was soon qualified for a 502 direct loan with subsidy assistance. 

In late summer Denise Hanebuth moved into her new home and Joseph was happy to pose with her and Natasha for a 

photograph. She has a home where she feels safe and can raise her daughter with pride and dignity. With the help of dedicated 

staff and the USDA 502 Direct Loan Program, Denise was able to purchase a home within her means and fulfill her dream of home 

ownership. 

Meeting a Family’s Needs
 So, it has indeed been my pleasure to work with Under Secretary Thomas Dorr and the 6,000 dedicated professionals at Rural 

Development to develop a rural America that is a healthy, safe, and prosperous place in which to live and work.

As we enter a new fiscal year, USDA is being called upon to help the Nation develop renewable energy, decrease our reliance on foreign 

oil, and help create extraordinary opportunities for rural entrepreneurs.

I have been proud to serve our Nation during these exciting and challenging times. I am confident that with the support of USDA Rural 

Development, rural America’s best days are yet to come. 

Program Delivery increased 60% in FY 2008

A Message from Idaho State Director Mike Field 

Cover photo by Dave Blaisdell

Ed Schafer 

Secretary 

US Department of 

Agriculture

USDA RURAL DEVELOPMENT

Committed to the future of rural communities.

Fellow Idahoans:

 I am very pleased to present the 2008 Annual Report for 

USDA Rural Development in Idaho. Our final numbers in 

program delivery for FY08 reflect a 60% increase over 

last year’s efforts. That is pnenominal!! Our employees 

are all to be commended for their hard work. It was a 

record year! Over $206 Million Dollars spent in rural 

communities across Idaho. 

 These funds have been used for homes and for business 

enterprises. They have also been used for water and waste 

“USDA is an equal opportunity provider, 

employer and lender. To file a complaint of 

discrimination write USDA, Director, Office of 

Civil Rights, 1400 Independence Avenue, SW, 

Washington, DC 20250-9410 or call (800) 

795-3272 (voice) or (202) 720-6382 (TDD).”

Message from the Secretary of Agriculture - It has been almost a year since President George W. Bush asked me 

to serve as the 29th Secretary of Agriculture, and I have had many great days working with the dedicated men 

and women at USDA to move our agriculture, conservation, and rural development policies forward. Together, 

we have accomplished a great deal in a short amount of time. 

For more than 70 years, USDA Rural Development’s mission has been to deliver a future that brings expanded 

economic opportunities and an improved quality of life for rural residents. My family’s heritage is deeply rooted 

in rural agriculture, and I will forever be proud of my rural upbringing. Also, having served 8 years as Governor 

of an agriculture State, North Dakota, gave me a thorough appreciation for rural economic development. Serving 

USDA has been more than a job; it has been a personal commitment. For me, the future of rural America is my 

future as well. 

Central Idaho Area Office

1441 Fillmore, Suite C

Twin Falls, ID 83301

208-734-1324

Eastern Idaho Area Office

725 Jensen Grv Dr., Ste 1

Blackfoot, ID 83221

208-785-5840

Northern Idaho Area 

Office

7830 Meadowlark, Ste. C3

Coeur d’Alene, ID 83815

208-762-4939

Western Idaho Area Office

2208 East Chicago, Suite C

Caldwell, ID 83605

208-459-0761

Lewiston Office 

1630 23rd Avenue, Suite 6

Lewiston, ID 83501

208-746-9621

Mountain Home Office

795 South Haskett

Mountain Home, ID 83647

208-587-9791

Preston Office

98 E 800 N

Preston, ID 83263 

208-852-0504

Rexburg Office

302 Profit

Rexburg, ID 83440

208-356-7248

Weiser Office

845 East 9th 

Weiser, ID 83672-2356

208-549-4280

treatment facilities and to improve the quality of life for rural Idahoans. 

This report contains only a few of our success stories. We want to thank 

our private, nonprofit and government partners for the great support we 

have received from them during this past year. With their assistance, we 

have been able to improve health, safety and job security for families and 

communities across our great state.

Sncerely,

Michael A. Field, State Director

USDA Rural Development

OFFICE LOCATIONS

Mike Field

State Director

2008 Annual Report

IDAHO

Northside Court: Where working together 

makes the “Play of the Day”

Northside Court Apartments is a typical Multi Family Housing Project. Built in the 

1970’s, it is located in an average residential neighborhood, with the advantage 

of the hospital and schools being close by. It is the only project on the north 

side of Jerome. Time had taken its’ toll on the project. The roofs were getting old. The 

siding and windows needed replacing and the playground needed updating. The unit 

interiors needed modernizing. 

All of this combined to make a fantastic opportunity for a team 

play. Someone who saw the opportunity to improve the housing 

and to benefit the community moved into position. They were 

looking for potential team players and connected with USDA Rural 

Development. Working through a USDA Rural Development transfer 

and assumption of the existing loans, the project was “passed” in 

the right direction. In addition, USDA Rural Development was able 

to work with an approved lender to provide a 538 Guaranteed Multi 

Family Housing loan to keep the “ball moving toward the basket”. 

Other players lined up to keep the “ball” moving. The end result is 

a “slam dunk” for the tenants and for the community. 

The project has been completely rehabilitated. Roofs have been 

redone, siding installed, new windows and doors have been put in, and all of the units 

have been modernized. The office and laundry were remodeled. Completely accessible 

and adaptable units were designed and implemented. A new playground was installed. 

Landscaping was improved and updated. 

USDA Rural Development was able to be a key part of a team that made the “play of the 

I

n February 2007 Betty Mortenson was in need of a furnace and some windows. She was 83 years old and had been a widow 

for about 15 years. Her only income was a small social security check and pension. Betty qualified for a 504 grant to replace 

her windows and furnace. Lana Duke, loan specialist in Preston, Idaho worked with her to complete the application and she 

was warm through the winter.

The Second Time Around

In July 2008, Betty’s neighbor contacted Lana. He said that Betty’s roof would not last another 

season. The roof had leaked during the early spring resulting in some pretty extensive damage both 

inside and out.

Lana talked with Betty and she agreed to move forward with a loan application. Even though she 

really didn’t have any extra money, she knew she needed a new roof. She obtained both loan and 

grant funds to pay for the roof reconstruction. 

A group of men belonging to Betty’s church came together and built her a new roof. All the labor 

was donated. Young and old spent their free time tearing off the existing roof – which had become 

very soggy from previous rains. They donated the use of tractors and backhoes to set new trusses 

and sheathing. They installed a new metal roof for which Betty was very grateful. She will not have to 

worry about her roof again.

day” come true in Jerome. These improvements will allow Northside Court to both benefit the community and serve tenants 

for a long time.