[Agriculture Fact Book 98]

Federal Funding for Rural Area Development

In FY 1996, Federal funds reaching nonmetro counties averaged $4,523 per person, while metro counties averaged $5,243 per person (table 4-7). However, significant regional differences exist. The nonmetro Midwest received the least amount of Federal funds, $4,241 per person, while the nonmetro Northeast and South received slightly higher amounts per person. The nonmetro West received the highest amount of Federal funds, $4,811 per person (table 4-8).

Federal funding includes grants, loans, and other payments to support agriculture, forest management, housing, transportation, education, health, public assistance, Social Security, veterans’ benefits, defense, energy, and so on. Figures on the metro-nonmetro distribution of funds are based on the share of Federal funds that can be reliably traced to county levels. Interest on the national debt has been excluded for analytic purposes.

Nonmetro counties received a large share of their funds from income security programs, especially retirement and disability programs. About 43 percent of nonmetro funds were for such programs, compared with 32 percent of the metro funds. The nonmetro West received the highest amounts of per capita loans, salary and wages, and procurement contracts. However, the nonmetro West received only about 38 percent of its Federal funds per person for retirement and disability programs, compared to about 42 percent for the nonmetro Northeast, 44 percent for the nonmetro South, and 45 percent for the nonmetro Midwest.

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