child poverty

During the 1950s and 1960s, the adage “a rising tide lifts all boats” broadly applied to the U.S. economy. As average income grew, the share of the population living in poverty fell rapidly. In the 1970s and 1980s, however, this relationship changed: average income continued to rise, but poverty increased. This means that incomes actually fell for many families in the lower portion of the income distribution. In other words, income inequality increased, and this translated into higher poverty despite a growing economy.

Recent work by USDA’s Economic Research Service (ERS) shows that this dynamic persists, and helps explain trends in poverty among children in rural areas. According to official estimates, the share of rural children living in poverty grew between 2003 and 2007 even as the national economy expanded. Between 2007 and 2010, this share continued to increase, as might be expected given the profound economic recession of 2007-09. But the rural child poverty rate continued to rise through 2012, peaking at 26.7 percent, its highest level since at least 1968 -- despite the resumption of economic growth at the national level. The rate finally began to decline between 2012 and 2014, but the 2014 level was well above that of 2003.

Rural child poverty fell by 3 percentage points from 2012 to 2014. Over the past seven years, USDA and the Obama Administration have taken action to address the root causes and reduce the devastating effects of rural child poverty.  As a record streak of private sector job creation has cut nationwide unemployment in half, to 5 percent, average incomes for rural and urban families alike climbed nearly 6 percent in the last two years of data, returning to 2003 levels.  While we have made important progress in increasing incomes and reducing the rural child poverty rate, it remains unacceptable that 1.5 million children in rural America – 23.7 percent of all rural youth – live in poverty.

Kids in bright summer play clothes come running with smiles and laughter as the white cargo van rolls to a stop near a playground and the rear doors swing open. No, it’s not the ice cream truck. It is something better – the lunch ladies from Kentucky Communities Economic Opportunity Council (KCEOC) Community Action Center delivering bagged lunches filled with fruit, sandwiches, juice and milk.

Volunteers and staff at KCEOC work hard to feed as many Eastern Kentucky kids as possible during the summer in three USDA StrikeForce counties: Knox, Whitley and Laurel.

In late July, I was thrilled to visit with leaders from across southwest Georgia, including my hometown of Camilla, to discuss how USDA can support their work on the ground tackling issues relating to rural child poverty.

In Georgia, the poverty rate is 19 percent, and for children, it’s a staggering 27 percent. In Dougherty County, nearly one in three residents live in poverty.

This is why people like Secretary of Agriculture Vilsack, Secretary of Interior Jewell, and I are hitting the road—to hear first-hand what’s working in rural America and how we, the federal government, can help.

Last month, the Obama Administration and the White House Rural Council, with Secretary Vilsack as the chair, launched Rural Impact, a coordinated effort across federal agencies to strengthen rural economies by supporting children and their families.

Today, Secretary Vilsack is in Memphis, Tennessee to attend the 10th Annual Organization for Economic Cooperation and Development Conference. Speaking with delegations from over 20 countries, he is discussing a new report, summarized below. This report examines what we know about kids living in rural poverty in the U.S. and how we can best assist them to reach their full potential.

If we invest in our rural communities, especially children and families experiencing poverty in these areas, we will be building a stronger country for our future.

Cross-posted from the White House blog:

During my trip to Kentucky, I was truly gratified to see Rural Development’s footprint throughout small towns spread across all regions of the Commonwealth. From water lines, broadband networks, wastewater treatment plants, single and multi-family housing, electric lines, senior centers, hospitals and small businesses, Rural Development helps build communities from the ground up working in partnership with local groups.

Last year, 73 Kentucky counties enduring some of the state’s toughest economic challenges were designated to receive targeted USDA support through USDA’s StrikeForce for Rural Growth and Opportunity Initiative. Soon thereafter, President Obama designated a region of eight counties in the state’s southeast corner as one of the country’s first five Promise Zones.  Under these designations, USDA works with local partners to leverage federal resources to address the area’s chronic poverty challenges and improve the overall quality of life in the region.