07/30/08 A new definition of "rural"

Washington Ag July 30, 2008 The new farm bill has a little section in it that will have a big impact on who gets government rural development money? What is it? Davis: "A major change in the definition of "rural." That's Russ Davis who runs the rural housing programs for the USDA's rural development function. He says the old rule said if you were in a town under 20-thousand people, you were rural. That has caused some problems as towns and suburbs have bumped up against farms in rural areas causing a blurring of what is rural and what isn't. So the new definition is based on a certain number of people per square mile. Davis says how this is going to work out as far as government rural program money being doled out is hard to figure at this point. But one thing is certain. Davis: "It will mean less money snuggling up against cities in booming suburbs but that is not really where the money is needed. The money in rural development is needed in the isolated areas and in the areas that we are still trying to bring into modern infrastructure." So now USDA has to work out the exact rules. The USDA has put into place another new farm bill provision. That is increasing the limits on loans to 300-thousand dollars, up from 200-thousand, for direct farm ownership and operating loans. Farm Service Agency loan limits had remained unchanged since 1984. I'm Bob Hoff.