$5 MILLION IN RURAL COOPERATIVE DEVELOPMENT GRANTS TO FOSTER ECONOMIC DEVELOPMENT IN 19 STATES

WASHINGTON, August 26, 2002 - Agriculture Secretary Ann M. Veneman announced today $5 million in economic development to strengthen rural communities in 19 states, as part of the Bush Administration's ongoing commitment to invest and bolster programs for rural America. The funding will assist cooperatives in facilitating the retention of rural jobs through the development of cooperatives in  rural areas.

"Utilizing cooperative ventures to bring new economic opportunities to rural areas is an important part of creating new jobs in rural America," said Veneman. "These grants will give rural residents the opportunity to expand and improve local businesses and economies."

The cooperative development grant program is administered through USDA Rural Development Rural Business-Cooperative Service. The grants were awarded on a competitive basis and are intended to foster rural cooperative development through projects that provide rural residents with education and technical assistance in areas of cooperative startup, marketing and managing, and other self-help tools.

Recipient states and the grant amounts are the following:

Alabama - $299,365

Arkansas - $238,681

California - $299,530

Colorado - $298,740

Kansas - $300,000

Kentucky - $269,500

Massachusetts - $297,618

Maryland - $289,500

Minnesota - $294,000

Missouri - $173,385

Mississippi - $161,667

Montana - $291,652

North Dakota - $300,000

Nebraska - $294,979

Ohio - $294,976

Pennsylvania - $300,000

South Dakota - $100,000

Texas - $232,460

Virginia - $299,980

USDA Rural Development serves as the lead Federal entity for rural development needs and administers financial and technical assistance through three agencies: Rural Housing Service, Rural Business-Cooperative Service and Rural Utilities Service. Further information on USDA Rural Development can be obtained by contacting any USDA Service Center or by visiting USDA's web site at http://www.rurdev.usda.gov/ .

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ARKANSAS - Winrock International Institute for Ag. Development - $238,681 - Purpose: To expand jobs and income in rural Arkansas through cooperative development.

CALIFORNIA - University of California - $299,530 - Purpose: To provide new and existing cooperative development assistance, and cooperative research and education.

COLORADO - Rocky Mountain Cooperative Development Center- $298,740 - Purpose: To support and strengthen emerging and existing cooperatives throughout the region.

KANSAS - Kansas State University - $300,000 - Purpose: To provide educational and technical assistance in the development of new agricultural cooperatives.

KENTUCKY - The Kentucky Center of Cooperative Development - $269,500 - Purpose: To improve economic conditions of rural Kentucky by promoting new cooperatives and continuing efforts to improve existing farmer cooperatives.

MASSACHUSETTS - Cooperative Development Institute - $297,618 - Purpose: To provide cooperative development activities to low-income and underserved communities in the Northeast.

MARYLAND - University of Maryland - Eastern Shore - $289,500 - Purpose: To develop and enhance cooperative organizations, particularly female and minority-owned enterprises.

MINNESOTA - North Country Cooperative Foundation - $294,000 - Purpose: To encourage information and expansion of cooperative housing enterprises that will help rural residents and communities increase opportunities for economic stability and prosperity.

MISSOURI - Family Farm Opportunity Center - $173,385 - Purpose: To develop cooperative activity, which sustains and enhances rural communities.

MISSISSIPPI - Mississippi Association of Cooperatives - $161,667 - Purpose: To provide technical assistance to existing cooperative and pre-development assistance to start-up groups.

MONTANA - MSU-N/Montana Cooperative Development Center - $291,652 - Purpose: To provide cooperative development, technical assistance, education, and applied research in rural Montana.

NORTH DAKOTA - Dakotas Cooperative Development Center - $300,000 - Purpose: To provide technical assistance for the development of new generation cooperatives in North Dakota.

NEBRASKA - Nebraska Cooperative Development Center - $294,979 - Purpose: To provide technical assistance and education for enhancing long-term cooperative development capacity with a sustainable approach.

OHIO - Ohio Cooperative Development Center - $294,976 - Purpose: To provide agriculture producers with information, training, and marketing tools, and to assist in economic development and sustainability in the community.

PENNSYLVANIA - Keystone Development Center - $300,000 - Purpose: To provide technical and limited financial assistance in cooperative development in the Mid-Atlantic states.

TEXAS - The University of Texas - Pan American -- $232,460 - Purpose: To promote rural economic development and facilitate the creation and retention of jobs in rural South Texas through the development of rural cooperatives, value-added processing, and rural business.

VIRGINIA - Southern States Cooperative Foundation - $299,980 - Purpose: To assist farmers in the traditional tobacco-dependent regions to develop innovative cooperative enterprises that take advantage of trends in the modern marketplace.

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