FUND FOR RURAL AMERICA TO ASSIST NEW VALUE-ADDED COOPERATIVES 

                                              Release No. 0173.97

                                      Tom Amontree (202) 720-4623
                                               tamontree@usda.gov
                                      Dan Campbell (202) 720-6483

FUND FOR RURAL AMERICA TO ASSIST NEW VALUE-ADDED COOPERATIVES 

     WASHINGTON, May 23, 1997--The U.S. Department of Agriculture is
accepting proposals for $1.7 million which will be used to support
development of  cooperatives that produce value-added products. The money is
being made available through President Clinton's Fund for Rural America -- a
three-year, $300-million effort to improve the economy and living standards
in the nation's rural areas.
     
     "USDA has a long history of supporting cooperatives that help farmers
and other rural residents help themselves by marketing and processing their
own crops, livestock, seafoods and crafts," said Agriculture Secretary Dan
Glickman. "The Clinton Administration and USDA are increasing federal
support for the development of new cooperatives which produce value-added
products, thereby enabling rural people to keep more of the profits derived
from their labor."
     
     Federal, state or local agencies and institutions of higher learning
or nonprofit development organizations can apply through July 31, 1997, for
the competitively awarded, cooperative agreements.  Funds may pay for up to
75 percent of the cost of a development project. The applicants must make a
cash or in-kind contribution derived from non-federal funds.  
     
     Proposals will be evaluated based on merit, quality and the relevance
of a project to creating increased economic opportunities in farming and
rural communities through expansion of value-added processing and product
development.

     The Fund for Rural America is providing $100 million annually in each
of the next three years for a wide variety of rural economic programs. "This
program delivers on President Clinton's commitment to expand economic
opportunities for rural Americans," said Jill Long Thompson, under secretary
for USDA's Rural Development mission area.  "The future of small farmers in
this country can be enhanced by value-added cooperatives, keeping more of
their profits at home in cooperative businesses farmers own."

     Cooperative development proposals should be sent to: Dr. Randall E.
Torgerson, Deputy Administrator for Cooperative Services, Rural Business-Cooperative Service, USDA, Stop 3250, Room 4016-S, 1400 Independence Ave.,
SW, Washington, D.C. 20250-3250. For more information, call John Wells at
(202) 720-3350 and request information on the Cooperative Value Added
Program. 
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