Revitalizing the Rural Economy

Revitalizing the Rural Economy

Revitalizing the Rural Economy. I'm Greg Martin with today's Line On Agriculture.

I grew up in a very small town in Kansas. Total population including most of the dogs and cats was right around 500 people. Back in the 50's and 60's it was a thriving community but as the 70's and 80's rolled in it was apparent it was on it's way out. The last time I visited the old hometown I was very disappointed at the overall decline and the few businesses that were there were barely hanging on. Now the USDA is setting out to try and help revitalize small towns like Delphos, Kansas. A new $150 million fund now allows USDA to facilitate private equity investments in agriculture-related businesses. Ag Sec Tom Vilsack.

VILSACK: This is going to create the opportunity for investments from the Farm Credit system into the purchase of equity interests in businesses. This is not about lending money to businesses. This is about taking ownership interest in small business in rural America.

As more and more young people left small towns like Delphos the businesses that supported to town shifted more towards the support of the local ag community. Vilsack says this program will help all those kinds of businesses.

VILSACK: A lot of these small businesses particularly those that are agricultural related want to locate in small towns have a hard time putting the capital together to expand and continue in business. Rural investment business company will now give folks an opportunity to potentially obtain partnerships with the investment company and be able to expand operations and to increase opportunities.

That's today's Line On Agriculture. I'm Greg Martin on the Ag Information Network.

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