ED IBA 745

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INSTITUTIONPUB.DATENOTE

EDRS PRICEDESCRIPTDRS

IDENTIFIERS

ABSTRACT

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RC 11111 839.

Rwal Develops!ent Progresso Jamu'aty I977-June 1979,Fifth Report of the SeSTetary of Agriculture to The..Coag"ress.Department of Agriculture, Washington, D.C..Dct 797Hp.: For related document, see ED15.7'652.

MF01/PC04 Plus Pogtage.,AcmdemicAchievement: .*Agency Role;'*DeliverySystems; *Demography: FConomically bisadtantaged:Economic Development: Employment; Energy; Facilities:Federal Government: *Federal Programs; Federal StateRelationship: Health Services;.Housing: Income;Needs: Program Descriptions: Pegional.oprograms;*Rural Development: Rural Population: *gtati.sticalData: Transportation ' ti*Farmers Home Administr.ation': Rural Devêlopment Act1972

The fiftWannual report of the Secretary ofAgriculture on rural development (prepared in response to a directivefrom the Rnral Development Act of 1972) summarizes current ru,ralbonditións by presenting the most recently available statidtaal dataon employment, income, population, housing, and community servite,sand faci tles and illutrates the administration's rural developmentstrateg rom January 197,7 through Jtina:1979. Health bare was chosen

.as the focal potnt of the first of a series of.initiatives.to Makefederal programs work better'in rural areas. Other 'White House ,

initiatives were undertaken, in..the azeas of .houSilig,_ later 'and sewer,

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transportation, communigationsr energyr faleral-state cbopetationit-

and economic developient. As a result tf the August.1977 merger 'OP'the Aural Development Service into the Farmers HoMp'Adminis,,teationr.new initiatives to implement its new policies andfredirectionemphases included policy management suppOrt for tedeargho teChni=a1assistance; and Fural advocacy: state plans and outreach targeted at :

the most distressed rural people and commun,itie.: joint'investmentstrategy agreements: se;vice delivery and pr4gram improvementmeasures: and an area d2evelopment assistance plan'ning grant program.Other U.S. Department'of Agriculture intradepartmental initiativesinzludel policy research, 4ervices to i.he disadva'ntaged, assistingrutal institutions, and protecting and improving the ruralenvirgnoent. (NEC)

* . Reproductions supplied by FDPS are the best that can 110 ma1efrom thn original do=ument. . *

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Aural Development Progress,January 1977-June 1979

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c°1_4 Fifth Report of The Secretary ofAgriculture to The Congress

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United StatesDepartment otp-

Agriculturelilasnington, D.C. 20259

October 1979

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DEPARTMEN.T OF AGRICULTUREOFFICE OF THE SECRETAR:f

WASHINGTON. 6. C. 20250

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To the PreSident of the Senate anid the Speaker of the Hough:-

Transmitted herewith is the fifth report-on rural developmentprogress, pursuant to.Title VI, Section 603(b),'9 the Rural

. Development Act of 1972.. , .,:'

,

. fThis report summarizes current rural conditions and illustratesthe Administration's rural develdpment strategy from January1977 through June 1979. The new initiatives discussed focuson,targeting resburces on the most critical rural problem andthe mo t distressed population groups or areas. They reflect

imour c itment to making existing pr grams work,bettv. And

they 1 lustrate our emphasis on coordinated actions' among alllevels of government and the private ector.

Jhe report demonstrates tntreased attentitm t6-rural America onthe part of the Executive Branch. We believe the Cofigress willfind it useful and 'responsive to the re9uirement expressed in -

the ial-Development Act.

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En'clos,ure

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DEPA4TMENT OF AGRICULTUREOFFICE OFt THE SECRETARY

WASHINGTON, D. C. 20250

.t.

SUBjECT Rural Development Pro ress Report

TO: Bob BerglandSecretary

The attached report describes this Achinistration's approach to ruraldevelopthent. It discusses initiatives of the. White House; the

.bepartment of -Agriculture, with emphasis on the newly redirected -

Farmers Hothe.Acani-nistratlon; and other.Federal agencies that have asigreicant rural impact.

Jhe.teCcind-section:of the report presedts brief,suMmary, on rural.cornditions The -data 'stlow that overall 'conditions in- rural 'Ainerica, are.steadily,improving but that persistent problems.of disadvantage remain,especially for-certain population groups and'areaS. Because we.beltevethat ConreSS is looking primarily for a report on this Administration's'approach to. addressing the problems of rujal America., We hive not

4. designed the report to proVi& indepth dotunlentation . o ruraL problems.

In the chapters On USDA, we give Specific emphasis to the stristegy wehave been iollowihg, for 'carrying. %it the\ leaderstiip ahd coordinationresponsibilities mandated by Section 603 of the, !tura]. Developmed Act.This 'trategy recognizes the burden placed On ,Small'"rural governments'tryi ng . to use:numerous but uncoordinated Federal ,programs.. This strategy

'also recognizes that some rural' problems.are more serious than others,some pOpulation .grouPs ,s.offer-fro theni far more than others, and targeing on -these probleins or groups is a practical and moral approach to'"delivering alwos-limited resoUrces. ,In additions:ft is a strategy thatsays. coordination is not limited to cooperativn among siMilar Federalprograms but..,should inclUde Mutually supportive efforrts carrted out byFederal , Stateis.,ind local insti tutions wOrq ng together.

.We.blieVe that the Federal initiativet 'discussed inthis report:are acredit. to the Administnition, as well ,as to*the Congressfor its rolein -enacting the Aural' Devel opMent Act/ of 1972 and subseqiient .1 egi sl atiionattentive to rural America. While the repart cannot show that.raral 1""

America's --problems have been .sol_yed_, or eVer mill be coMpletely, ddesshoW that under -this .Administration the executiVe branch is committed/to.

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rural people in principle and in.:performance:,

'ALEX P. MERCUREAssistant Secretary for

Rural Development

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Contents

Page

Executive Summary 5. Other USDA initiativesIntroduction

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4 1

1. Introduction 1 Intradepartmental Initiatives 41Agency loitiatives . (policy research .

2. Rural Conditions and Trends 3 services to the disadvantaged ... assistingPopulation Turnaround 3 ru.ral institutions . irnpiroving agricul-Income and Poverty 3 ture . .. reducing energy'costs protectingEducational Attainment 6 and impr(34ing the rural environment) . 45

Housing 6

Essential Community Services and Facilities . 7 6. Other Federal Agency Initiatives 53Conclusion 11 Assisting Population Groups .. . (the poor',...

the unemployed and underemployed .

3. White House Rural initiatives 13 women . . . older Americans . .. NativeRural Health Initiatives 13 Americans) . 53Rural Housing Initiatives 14 Improving Services ... (health care .

Rural Water and Sewertnitiatives ....... 15 education . . housing . transportation) . 59Rural transportatidn Initiatives 16 Focusing on the Environment 63Rura) Communications Initiatives 18 Focusing on Energy 65Rural Energy Initiatives , 20 Focusing on Agriculture 67Rural Initiatives for Federalttate Cooperation 21 Working With Rural Communities 68Rural Economic Developtnent InitiatiVes 22Rural Development Policy 23

4. Farmers Home Administration Initiatives 25Introduotion 25Policy Management Support 26Targeting 28

Joint Investment Strategy Agreements 31

Service Delivery and Program ImprovementMeasuies 33

Area Development Assistance Planning GrantProgram . . , 38

IP

Executive Summary

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IntroductionThis report responds to the directive of Section

603 of the Rural Development Act of 1972 requiringthe Secretary of Agriculture to establish nationalrural development goals and to report on progresstoward their attainment. The report sets forth thegoals and provides data highlighting rural conditionsand trend's. It describes this Administration's ruraldevelopment operational strategy. And it providesexamples of executive branch initiatives to illustratehow the strategy is being implemented.

'The report and this summary are organized to,show the extent of rural development concern andaction throughout the executive branch. A key objec-tive has also been to show how the various func-tional perspectives and mandates of the WhiteHouse, the Department Of Agriculture, and otherFederal agencies are being translated into anincreasingly coordinated rural development effort.

Rural Conditions and Trends

Population and ecohomic growth proceed in non-metropolitan areas as a whole.,Substandard housing -is declining markedly, and poverty is declining,though less dramatically. Both substandard housing.and poverty continue at higher rates tlien in urbanAmerica.

In 1969, 46 percent of the Nation's poor were rural,compared with 40 percent in 1977. Viewect anotherway, in.1969, 16 percent of nonmetr`o residents werepgor, compared with 14 percent in 1977. In metroareas, about 10 percent of the residents were poor inboth years, indicating that povefty is declining at afaster rate in rural areas.

The slow 1?ut steady improvement in the ruralincomesituation pan also be seen in the slightimprovement ii rural median family incomes com-pared with urban. In 1969, median family income in

' nonmetro areas was 77.6 percent of that in metro. areas, while in 1977 it was 79:4 percent. The relative

improvement is more marked over the longer periodof 1960-77'. In 1959, median family income innonmetro areas was only 71 percent of 'urban medianfamily incomes.

The problems of disadvantage that persist in rural .

merica are borne most heavily by the poor, theelderly, and minorities. For example, while substan-'#ard housing is declining for all population groups, itie declining at slower rates"tor blacks, migrantworkers, the elderly, indiani, abd single-personhouseholds. Most of these groups are also among

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those who are most'seriously affectedby the prob-lems in accesslo community services and facilities..in rural arias. The great increase in Federal attentionto these problems, as documented in the report,shows promise for the future, but currently theseproblems continue. In some quality-of-life indicatoroategories there has been no progress but actualregression, such as with physlcianfpopulatiorqatiosand passenger transportation (air, rail, intercitObus,and local bus systems).

Rural Development Goals,

Initiatives discussed in the report are in-Support ofthe five national rural development goals articulatedby the Secretary of Agriculture early in The Adminis-

,'tration:

1. Improve rural income levels and increase ruralemployment.opportutIties.

2. Improve the adcese.of rural residents to ade-quate housing and essential community facili-ties and services.

Provide a more equitable distribution of oppor-tunities through targeting efforts on distressedareas, communities, and people.

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4. qreate and implement a process for invoivihgAne priVate sector and lode!, State, and Federalagencies in establishing policies and programsthat affeqieural areas.

5. Strengthen the planning, management, ariddecisionmaking capacity of public and priyateinstitutfons concerned with economic oppor-tunity and qualtty of life in rural America.

The initiatives reported on have in common atleast one of the following elements: (1) targetirig onthe most needy or the most serious functional prob-lems; (2) foStering genuine.600peration and coordi-nation atfioth the interagen9y and intergovernmentallevels and with the private sector,,in the interest ofefficiency and. leveraging and to assu're that Federalefforts respond to locally defined priorities when'these are not in conflict with national objectives; and(3) taking steps to improve the performance ofgovernmental and private Institutions in rural devel-opment (including removing hindrances to currentcapacity: by such means as,simplifying the wayFederal programs work). .

A number of the initiatives a related to energyconservation, environmental pr. ction, agricultural

( 4.fend preservation, and many related conCerns thatare not specified In the national rural deVelopmentgoals, but are implicit in the "quality of lite" themein goil 5.

participation .by small-town lending institutions inrural housing: The first project finalized.is.for con-gregate housing -tor the elderly. Farmers Home willprovide loans for 10 demonstration projects to build.or renovate-group rental housing for senior citizens.HEW's AdMinistratiorl on Aging will make grants toprovide meal's, ttansportation, housekeeping, andother services. .

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Water and Sewer ServicesThe rural.water and sewer initiatives have resulted

;1 a fundamental relorm in the administration ofater and sewer programs of FmHA, the Environ-

mental Protection Agency, the Departinent of .Housing and Urban DeveloPment, the EeonomicDevelopment Administratioand the Council onEnvironmental Quality., Thelt6w process permits.asingle application, single audit, and einglepoint ofFederal contact for projects eligible for loan, Ofgrants from more than one agency. The initiativesalso nclude a Labor.Department.project for training,1,7 Workers to operate rural community water endwa e treatment plants. .

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White House Rural InitiativesAt President Carters.direction, the White House

Intergovernmental Affairs staff assumed a centraltole in identifying and analyzing,the developmentproblems and needs of rural America by calling uponthe resources of government at all levels, privateorganizations, and rural residents. Their findings .' *,have revealed a need for concerted efforts in anumber of critical areas and hive led to a series ofInitiatives involving more than a dozen Federaldepartments and agencies as well as State, local,and private sector Participation. White House Ruralinitiatives announced as of June 1979 are highlightedbelow.

Health CarsA series of fural health Initiatives to address short-

ages in rural primary care clinics, health supportstaff, and health professional staff include an inter-agency project that will restilv nearly 300 primarycare health c'enters to serve a out 1.35 million ruralresidents. Under the 4-year agreement, the FarmersHome Administration will make 5-percent communityfacilities loans av'Silible for construction or,renova-tion of community health centers or migrant healthcenters in underserved rural communities. TheDepartment of Health, Education, and Welfare willasaure the placement of medical staff in the facill-

.ties.

Other healtii initiatives have been launched withHEW and the Department of Labor tO train poor ruralresidents s preventive and health support workersfor placement in rural primary care clinics. TheNational Governors Association will assist in imple-menting these and the USDA-HEW agreement at theState level. An additional initiative.is focusing onfinding ways to increase the recruitment, trairting,and retention.of health professionals, particularlyphysicians,, in rural Eireas.

HousingThe rural housing initiatives are encouraging

,innovative demonstrations to meet special rurefhousing needs, use of common regulations and-forms among Federal housing agencies, and greater

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TransportationOn June 19, 1979, the President announced a

'series of initiatives to help overcome serious andlongstanding transportation problems. Included areinteragency agreements and actions to improve thiPcoordination and effectiveness of Federal setcial ser-vice and public transportation programs; coordinatedFederal Railroad Administrationl Farmers Home, andEDA rehabilitatiOn aid for essential railroad branch-lines; assistance to commuter airlines and smallcbrnmunity airports; andactions to promote ride-sharing in rural areas. The National GovernorsASsociation, State agencies, and the insuranceindustry also have a major role in announced actionsto modernize insurance laWs to facilitate improvedtransportation opportunities.

CommunicationsThe White House has announced a series of initia-

tives.to overcome rwai Isolation through moderncommunications technology. These include FederalCommunications Commission investigations forpossible rule changes to ease requirements for low-power television broadcast stations and translatorsin rural areas and to elimlniate impediments to rOralcable service development by telephone companiesin very small communities.

The rural communications initiatives also incitidefunding of a number of demonstrations, includingone that will provide a microwave system of deliveryOf medical, employment,:and training services tomigrant worker families incalilornia. ip addition, anadtriinistrative transfer of certain FmHA fundingauthority to the Rural Electrification Administrationwilt allow REA to finance demonstration projects forextending broadband telecommunicitions systems Inrural America.

EnergyThe first in what will be a continuing'series of

rural energy initiatives includes an interagency agreecment-to stimulate construction ot up to 100 small-acale hydroelectric projects -by 1981 and up to 300 lzy1985. Under the agreement, the technical andengineering resources of the Department of Energy,Bureau of Reciametion, and Corps of Engineers willbe coordinated with the financial resources ($304million for fiscal yeare 1979-81) of EDA, JUD, FmtiA,REA, and the Community Services'Admrnistration.

A DOE-EDA-CSA agreement will provide for theconstruction of up to 100 small-scale gasohol plantsby the end of fiscal 1981.

A $700,000 DOE grant to the American Public GasAssociation will support testing of the feasibility ofusing natural gas from coal or shale, to be followedby Fm.MA, REA, EDA, and other agency participaticinin development fundtrig if demonstration results arbpositive.

Also announced was $1.25 million in DOE and EDAgrants for up to 20 rural economic developmentdistricts to develop integrated economic develop-ment/energy plans, and a set-aside of 1,000 CETAslots in both fiscal 1980 and 1981 for training andplacement of poor rural youths in energy-related con-struction jobs.

Focioral-Stite CooperationUnder a White House initiative to foster Federal-

State cooperation for rural development, Federal-State agreements have been signed with NorthCarolina, Florida, New Mexico, Arizona, New York,Arkansas, and Vermont. Discussions are underwaywith a number of other States for similar agreementsfor coordinated planning and delivery of housing, .

community facilities, and other resources to areasand communitige of greatest need. Six of the part-nership efforts are between FmHA and the'States.,.

+. The seventh, involving HUD and Labor as,well asFmHA, is In North Carolina, where $1.2 blion in

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Federal funds from the three Federal partners will bedirected toward meeting -State and {peal priorities forrural development- In the State's balanced 'growth --strategy plan.

Economic 1:11;velbpment

The White House is leading a nation& demonstra-tion program to identify and institutionalize ways toensure that public works construction encourageseconomic *growth and raises living'standards inimpacted areas. The demonstration, which will involve5 to 10 major Federal construction projectiwill seekto maximize the employment of project area residents,'especialli minorities, women, and the poor. Also ofconcern are the procurement of more project-relatedgoods and services fromirnall'or minority busi-nesses, and sound project planning tP mitigateadverse project impacts on_the commenity and toimprove the environtnent.

U.S. Department of Agriculture .

Initiatives41b

Rural development is one of the Department'smajor statutory mlesiOns. Further, the Secretary ofAgridulture, under 91(0:lure! Development Act, Isresponsible for providing rural development leader-ship and Ocoordination within the executive branchand nationwide.

The following material summarizes departmentalefforts under the present Administration to strengthenUSDA's rural development performance. A descrip-tion of initiatives that involve a number of USDAagencies is followed by highlights of recent initia-tivei,of the Farmers Home Administration. In addi-tion to its programmatic responsibilities, FmHA hasresponsibility for assisting the Secretary and the-Assistant Secretary for Rural Development in carryingout their rural development leadership responsibili-ties. This section concludes with a brief sample ofrural development initiatives of other USDA agen-cies.

Departmental Policy Initiatives,. The Secretary has reinforced rural development

as a mandate for all of USDA by issuing aSecretary's Memorandum on rural development thatdirects USDA agencies to give aggressive leadershipand assistance to meeting national rural develop-ment goals, with emphasis on assisting the mostdistressed areas and population groups. In the policy

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tatement, the Secretary estiblished a departmentalrural development cOrrimitteti and a system tor deter-mlninikat the beginning of each year how eachagencyWili contribute to the goals, and for reportingat the end Cif the year each agency's contribution.

The Secretary-has initiated a national Agricul-turai Structures Dithogue to provide the foundationfor policies to achieve a future structure that willbeSt meet national needs as well as the needs ofagriculture, rural America, and consumers. Factorssuch as the number and size of farms and the owner-ship and legal organization of farms and farmlandas weli as the tradeoffs involved in various ciptionswithin eachwill be included in the examination.,issues and Policies that affect structure will also beidentified.

With CSA and ACTION, USDA has Sponsoredfive small farm conferences across the country plus

, an indign Agriculture Conference WithalA as an\ additional cosponsor. These were followed up with a\ number of actions fo'assist small farmers; includingI establishment of a USDA policy on assistance tosmall farm operators to encourage; preserve, and,strengthen the small farm. The conferences led to 16special small 'farm projects using coordinatedresources of USDA, OSA, and ACTION to help smallfarniers increase their production and Income, asWell as the establishment of a small farM subcom-,mittee as part of each State rural development com-mittee to develop State small farm action plans. Inaddition, a USDA small farm coordinator positionwas established and each agency will repdrt to thatperson the results of an annual review of its pro-grams, with recommendations for changesneeded toimprove attention.to small farm families.'

'Other major actions involving the entire depart-mentinclude the eitablishment of a consolidatedUSDA Office of Transportation to develop ruraltransportation policy on passenger transport andcommodities movement; establishment of a NativeAmerican Task Force.to improve the effectiveness of ,USDA programs,as they apply to Native Americans;and establishment of a USDA Office of Energy tOprovide leadership and, foc'us to USDA energy activi-'ties.

The USDA Offite of Trinsportatian and DOThave been in9,Ived in major staff support workrelated to the 16-member Rural TransportationAdvisory Task Force established by Public Law95-580, signed by PrOident Carter November 2, 1578.Under the chairmanship of the Secretaries of Agricul-.tore and TransPortation, theask force is to recom-

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mend a national agricultural transportation policy Ina report dui for puPlication,in January 1980. In June1979, the tisk force published a preliminary reportIntended to encourage informed public participatidnis" public hearings held In July'and August in 12'cities soros* the Country.

The Secretary has also issued a strong lend usepolicy statement which includes a directive to USDAagencies to providi expanded organizational, leader-ship, planning, and technidal aesistance on ellaspects of land use, including alternatives to theconversion of a wide category of designated lands.

FarMers Home AdministrationUnder the Carter Administration, FmHA has untie

gone a major philosophical redirection centerihg onfocusIng'agency resources on the most distressedrural communities and population groups. Supportiorganizational changes also have been 'madfacilitate using these resourcer(an estimated $18.6billion in fiscal year 1979) to influence those of-otheragencies and instituilons in joint investment strate-gies to help meet the most critical rural problems. Athird objective of the redirected agency has been to.improve FmHA services to the public.

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TargetingAmong the sterol taken to facilitate targeting on

the most distressed areas and groups,-FmilA has:Allocated fiscal 1979 fundi to the States on

more refined criteria of didadvantage and requiredthat FmHA State directors develop and implementannual ptate investmentplans which address themost serious needs in their States.

Contracted for &needs assessment capabilitystudy and other mission-oriented research to reducedata constraints to effective targeting.

Intensified outreach efforts to groups not ade-quately served by FHA through such pleans asdemonstrations using community-based organizationsand strengthened Indian outreach posttioes in fieldoffices.

Targeted lunds from specific programs for,indi-vidual population groups, such as,women and pinori-ties, under the:business and industry loan programfor FY 1979.

,Implerhented a range of new programs thatfocus on the distressed, including a new rentalassistance program that will provide subsidies tolow-Income families and a $4 billion farm economicemergency loan program.

Allocated staff resources for identifying oppor-tunities for targaeting on.functional problemsother agencies through cooperative proje6ts, siitt) asan ,FmHA-Extension-PSA-DOL demonstration thatwill create agricultural training lAstitutes to provide'Onemployed rural youth with training in agricufture,marketing and supply, and related fields, as well as -

educational services And career counseling.

Joint investment StrategiesTo facilitate joint rural deyelopment ef/orts with

State and local governments, FmHA has realigned Itsdistrict office boundaries to correspond with thoseof substate'planning districts. It also has directed itsState directors to identify in their annual intrestmentplans potential opportimities to convert agencyresources into leveraging tools. In addition. FmHAand four Stateahave negotiated statewide jointagreements for cooperative investmept planning andaction for rural Oevelopment. A similar agreementhas been negotiated with the Appalachian.RegionalCommission.

Joint investment strategies with' other Federalagencies are being developed to combine funds forfocusing on critical run@ problems. For example, an

HUD Ants and $46.2 mi ion in FmHA loans toFmHA-HUD demonstratio is using $3 million in

demonstrate improved delivery of rural housing andcommunity development assistance tb the disadvan-taged.

Improving ServicesTo improve program delivery, cost effectivetess,

and responsiveness to current rural needs, FmHAhits:

Restructured its field sys tem to transfer respon-sibility for multifamily housing and community pro-grams to district offices. This allows county officepersonnel to devote full attention to serving ruralfamilies seeking housing or farm loans and toengade in more outreach to theAsadvantaged. Italso concentrates expertise at the district level forhandliq The larger, more complex loans.

Implemented stringent new thermal standardsfor housing programs (implemented with REA a ruralhousing'weatherization program) and developed the

desIgn criteria for anaerobic digesters to be Used byfarmers in converting animal-waste to metflane gaq.FmHA also made constructidn and operation of adigester on family size farms an eligible purpose Toragency farm or soil and water loans.

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. .Other USDA Agenda

The ongoing progr4m activities of y all USDAagencies have a.direc impact on Im g varidusaspects of the quIi4ty4of life in ruriir . Since /these programs are generally .will tledpiatOod, theactivities documented in this report,are confined tonew initiativeslypical of those that impact.nlostdirectly on rural development. Examples are givenbelow.

Services to the Disadvantaged'New Food and Nutrition Service regulatione for the'

Food Stamp Prpgram have increased pirtfcipation inthe matt sparsely populated rural.areas, as indicatedby the 33 percent flee registered in the first 2 monthsalone, after implementation of the nrgulations..FNSis also conducting a major demonstration fel. theSpecial SUpplemental Food Program fOr Women,Infants, and Children to reach eligible women andchildren who ate Migrant farmworkers.

Building Rumr institutionsIn line with netranal rural development goals, all

igcreasing thrust ameng USDA agenefes hasbeenassistance to strengthen the ability of local. andState public and private agencies to.be More respon-sive to the Rileds and desires of furaLpeople. Forexample, the Extension Unit of the Science and -

Education Administratron (SEA) has established as amajor goal the,strengthening of local units,of govern-ment and their planning capabilities, and hasemployed a local government specialist to lead thedevelopment of programs for use by SEA-Extensionpersonnel nationwide in assisting local officials.

Energy initiativesTproughout USDA, increasing emphasis Is being

pleed oh energy conservation and reducing energycosts for rural and other residents. For example, theRural Electrification Administration now requires thatIts electric cooperative borrowers have energy con-servation programs as a condition for receipt of anREA loan. A.1

Protecting the Rural EnvironmentA major priority for all USDA igencies is to bring

Ifternselves into compliance'with the Secretary'sOctober 1978 lend use policy statement. In addition,USDA agencies are involved in numerous environ-

. mental protection or improvement efforts, withincreasing amphasis ort cooperative Orojects withother'agencies. For example, six -USDA agencies

%d *have joined (Nith EPA aMoilet implementation3pro- )fgram in seven'States ip*ih9ow 4low, a, coordinated prd-gram of conservation sWente can impidye valorquality in rura! areas. (..,,

, ):.,

Other Federal Ageric !MistIti'addition to participating in the Whit ouse

rural initiatives as discrsed earlier,,Federpi.depart-memo and agencies have taken numerous individualsteps to better serve peopleein rural areas. Highlighteof Vie major thrusts of these Federal initiatives aregiven below. .

Equity_Analysis of the reports submitted by other agen- 41 -

cies or departments shows that an increasingnumber have taken seriously'the assertion that aAbetter rural/urban balance is needed In.Federal pro-gram administration. Examples of actions aimedtawardNachieving rurallurban equity Include thefollowing:

A study has been undertaken within HEW onFederal aid to rural schools, with the first phasefocusing on whether allocation formulas and com-petitive grant application requirements work to the)disadvantage of rural distriets. Also, the Bureau ofElementary, and Secondary Education of HEW hasstarted a dialogue with major rural organizations tolook at rural education problems and to address theapparent effects of rural underrepresentation inOffice of Educatiops programs.

The Secretary of .HUD established a task forceon rural and nonmetropolitan America, whose workJed to a HUD rural coordinating group and a numberof rural InitiativeSto increase and improlfe the use ofHUD resources in rural areas. Efforts to suppoit thisobjective includé a major evaluation of Section 8 low-rent housini assistance in rural areas, a rural hous-ing needs assessment, and an analysis ofrural creditsupply and demand. In addition, HUD's Annual Hous-inzSurvey will include new questions to determinebonditions unique to rural areas, and will Are a doU-ble sample in rural areas to increase statisticalreliability. -

In the Labor Department, the Secretary estab-lished a committee on rural development to provideleaderdhip in improving DOL's policies and programsrfi rulal areas. This, effort ha% been augmented by:

ihe Bureau of Labbr Statistics action to exdandits current population survey database by 10000`households in predominantly nonmetropolitan

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areas to obtain 'Itiorp accurate- Oral employmentand unemployment data;

.

The repart'of The National Commisaion onEinployment and Unemployment Statistics,%under-.taken.to develoP new end mdre accUrate employ,:

.ment hardship mitasures that can serve ELS a basisfor more equitable ruraIurban distribution of OETAresources; and

DOL contracts with the National Governors-Association and the AMprican Association ofSmall Cities for recommenditione on improvingrural empOyment arid training services. V'

EmploYment and !momAgencies' ranging from HEW and Labor to USDA-

and the Community Services Administration areengaged in a wide range of effOts to improveincome opportunities for the runill digadirantaged.These aCtivitieslriclude:

.Training.to upgrade the econoilic prospects orfpoor fatmworkers and Small farmerS through DOLcontracts with two federations of poor People'Scooperatives and the Emergency Land Fund;

DOL-bOE training of migrant and seasonal farm-workers to equip them for energy4elated occupa-tions, and training and employment of unemployedfarmworker youth in such work as solar water heaterrepair;

Establishment of additional...10 Co s centersfor Indian and Native Americans;

HEW-DOL demonstrations for creating publicjobs forlural AFDC (Assistahce to Families withDependent Children) recipients;

Regional commission support 10 small farmers,including grant aid from4pe Central Plains RegionalCommission for establisfiment of a cooperatii& toserve minority farmers with a vegetable processing,and packaging faaility; sir

EDA Office of Special Projects support-to ruralcommunity-based organizations to help them identitfyand implement projects that will provide jobs and b.jacilities in especially distressed rural communities;and.

Women's Bureau hearings on the employmentand economic problems, of rural-low-income women,and ear trki bf nearly half the Bureau's fiscal.year1979 * ta assist rural women, in-ciudin e a ; tralion projects On employment andtratnind.

de'

4Of

access to SerVices and HousingExpansion of assistance for rural community ser-

rt.

..vices-and housing anci-eifOrts to sitip14 Or increaseaccess of rufal p'eople tO existing serviOes andresources are.major concerns 9f several agencieS.-Recent actiohe -, ,

b. HEYV demonetrationslo improie delivery ofsq-cial.ancr Oild'w,eifare iervices to-indianaand lo

...

ok- simØttf aCcess ftiserviceeidr the aged,.the develop-. 'mentally ftataied, and others Walt& weds; r

, Exptaositiln of :Heait 8tart4o serve -art add)tional8,900 children-of migretgiVa(rnworkers Elba-NativeAmericah children and anikdditto-ral 3,109 puerto' , A

. Riban children; ,," : .

,Inpovative training foellealth-care wOrieris, such

as the bentef for Disease dontrol's initiation citetelephone lecture series.totkain laboratory7techni-ciani in more than 400 ruraNiospitsls in 13 Stales,reaching an estimate of more than 25,060 students.

. annually; .Demonstrations .to assist the rural eideriy,

including a seven-State WA-sporisomd demonstra-.tiOn-that includes proviiiOn of yetis to prdvicle healthcheckups in isdlated rOral areas,. antt tlrIrLg Of ;herural eldedy to-Staff a progrern.tvróducefree-energy audits'-of homes using,electdc poWer;'

Support fOr rural wpmen, Such 'as en ACTIONgra'nt for the Oklahoma Fiural Indian Women's pro-.gram to meet rural Indian women's legal rights andother needs', end ARC support to.the Council.onAppalachian Wornen for a women's credit union,group insurance program; aria resource' end infor-mation center fog, Appalachian women; .,

tic 3-year CSA national demonstraiiorron ruralhome repair for the, low income;

HUD actions to address housing problems InAppalachia and other niountainous rural areas,-including participation in'the design of`a housingstrategY for eastern Kentucky; .

HUD support for a State project using corn-munity action agencies to connect rdral low-incomehomeowners with sources of financing for housingrehabilitation;

.**

I.

Cootdinated asslstance for rehabilitating ruralhousing while providing training for the-unemployedor underemployed, including a DOL-FmHA agreementto train and place farm laborers In jobs rehabilitatingpublic housing for farm laborers, and rehabilitatingand weatherizing farmworker-owned housing. As ,

another example, DOL,--CSA, and FmHA will train 500rural youths In construction work In connection withthe rehabilitation of an expected 1,000 homes forrural tow-income families.

13

Energy .. -Federal agencies and regional coM isslons have

significantly incfeased their anergm ateddyes, with the'purposes ranging fr deVeldpment

.,of alteMate sourcPsto lessening hi h ener4y covimpacts On':ttist rurel piaor. A samp ng of the ni)anyacfivitles.,reported litcludes:

.

!)- .CSA tunding foctralhfng an teOhnical'assis,.tance support for tioulsing weal hsrltIQn fof migrant

-andseasorial farrnworkeri;SOuth*est 13Order Regio I doirimlailon suppert

.tor a'four-State-dmohsratofl on the use df solar :

energy and coakiervatioi) lee riiitued to upgradeexiiting low-income housi units;

0. ,FOUr Corners ReglonattoMmiasiOn funding ofresearch and deminstrationa on the feasibility of.energy production from !igricultural waste resources;and -pa '

0."

- ARC funding for dernonsirations on the use ofwood asa low-cost alternative energy source. .

Agricultural Lands ProtectlinA narrower range of Federal agencies Ind depart-

ments is involved in actions related to environmentalprotection and resource management, and desisivelaws on land use am still primarily the respdMibilltyof States and localities in.this country. Two agenciesother then USE* reported r9ajor new environmentalactions related.to rural development. The .

Environmental Protection Agency has promulgated-an Agricultural Lands Protection Policy to limitadverse impacts that EPkprogrfirns may have onfarmland. And the Council on EnvirOnmental Quality

' will-cosponsor vith USDA a national study of theavailability of 34% Nation's agricultural lands, theextent and causes of their conversion to other use*and the ways by which thete land& might be retainedfor agricultural purposes. .

The following pages provide additional detail onthese and, wide range of other Federal rural devel-opment actibris. They indicate great progress inelevating the importance of rural development issuesnot only in the Department of Agriculture but alsowithin the White Houie and across the entireFederal Governmen/1 The report also indicates'marked progress in interagency and intergdpem;.mental coordination and cooperation and, mostimportantly, prpgress in makingerograms do a betterjob for the r,esidents of our rural areas and smallcommunities.

xi

\This report is in aterlonse to $sction 603 of the .

Meal Devetopmept Act of 1972, which/equips the'.Sedietary of AgricutWre to establish national rOral4..

developrrfent goald and to,report on progresslnattaihing the goals.

Nhe goals established early lo this-Adminisfraticulalentmad from a rural' pblicy lisues study conductedfor the President by the Secretary of Agrjculture in ,the Sprinp aerd sumtner of*1977. The-gorps are as'.follows:

Improve rufal income levels and increase ruralemployment oppoiturlitlei. -

2. Improve the access of rural residentsto ide-quate.housing and essential coMmunity fpcilities arid servicek. , .

::necessery beciuse rip one program, agency, or:deriartment has repqnsibilifVfor the many Federalactivities that collectively-constitute the Federalrural development program:Some departments and.agenciesslo hive major pcograms-that deal exclu;sively With rural problems. Out while these rural pro-gthms are necessary to irnpioving the quality of lifein rural aireas, they alone are not sufficient. Numerousother Federal;actions of the type re ed on here,las well,as ttie manY ongoipg progra pt covered,are .reqvired to address the diVerse a 'complexprailemstif our citizens who live ip the less denselysettled areas of rural America_

section 603 also requires a progress report regard-.

ing the 603(01) directive.to the Secretary on coloca-tion Of USDA and other tield Units of the FederalGovernmOnt concerned with "pc"! develdwhent inapFiropriate USDA field offiaes. That report wastransmitted to the Congress separately on April 30,14979. It found tat of the 11,992 USDA county officesidentified as of November 271978, 07 percent were

completaor partial colocations. Thus, USDA'scounty offices are limited to 3,370 locations around

. the country. Colocation with other Federal agencieswas fou d to be imp/ limited at the County level,,pialfily bause other Fede.ral agenpiel do not usuallyhave oiSnty offices. Colocation with related State

'and county officed of nonfederal governmental unitswas more comnIon and is 'lying further encouragedby USDA:

This report is also designed to respond to report-ing redlUirements of Sections 901(c) and (d) of Title IXof the Abricultural Act of-1970. The requirementsrelating to planning in Section 901(c) are responded \to by the material on rural development planningassistance in chaptsr 4'of this' report. The Section901(d) requirement is cogcerned with information andtechnical assistance provided to rural areas byUSDA. Instead of preparing a separate report detail-ing such activities, as has been done Oreviously, itwas decided that it would be more useful and lessexpenske to report only on new initiatives and toinclude these in the present report.

' Section 901(e) of'the Agricultural Mt of 1970 callsfor a report on the availability of government servicesto rural areas. Traditionally, this requirement hasbeth met by reporting on Federal outlays in non-mentropolitan areas, contrasted with.those in metro-politan areas. The moSt recent such report is FederalOutlays rri 1976, published in August 1978 and avail-able from.the Department's Economics, Statistics,and Cooperatives Service.

.

3. Provide a moresquitable distripution of oppor-tunities through targeting efforts on distrestedareas,'communities,and people.

4.. Create and implement a process for)nvolvingthe private sector and local', State, and Federalagencies in establishing polioles and progrdnsthat affect rural areas. ':*

5. Strengthen the planning, management, andecisionmaking capacity of public and private 4 .-

institutions concerned .with economic oppor-tunity and quality of life in rural America.

0-0 illustfate progress in meeting these goals, this .

report presents a summary of current rural trendsand conditions', discusses the Administration's ruraldevelopment strategy, and illustrates its implementa-tion with many examples of executive branch agencyinitiatives addressing rural problems. Numerousinittatives with limited ai well as major impact arereported'on in order to portra9 the reality of Federalrural development activities, and thereby inform theCongress and rural advocate groups that thisAdministration has in fact been responsive to theirpersistent demands since 4972 for greater Federal at.tentior to rural America's needs.

The extensive.reporting approach also is Judged.

'Detailed backup information 49d data on rural conditions are available in theAss IStfint Secretary for Rural DevelopmerIt's telatimony on Rural Amenca in the1970s presented to the House Subcommittee on family Farms. Rural Developmerit, and Special Studies of the Committee on Agriculture,on Apr. 49. 197S.and to the Senate Subcommittee on Rerfil Development of the Committee onAyriculture. Nutrition. and Forestry. on Apr. 26. 1978. and in Hural DevelopmentPerspectivev published by 1171p Ftorrom,c Developrnpol Dwision of theEconomics. Statistics. and Cooperatives Servicto on Nov 1.,1.978

1 4

1

4

Pa,

2. Flurai Conditions and Trends,

After detades of population IOSS' and econorr4cdecline, rural America; haeprogressed significantlytoward improving its socialand economic Conditionsduring the seventies. Yet, rural areas contrnueto lagApehind their urban counterparts iri terms of wagellevels, family income, employment opportunities;aglequacy.of housing, and access tb health;care andother essential seryicas and facintles.

Population TurnaroundNearly 60 million persons,- over quarter of the

U.S. total, live in rural America. Since 1970, ru'ralareas have experienced renewed growth and vitality.Population rose 8 percent from 1970 to 1976, higherthan in urban areas (fig. 1). Rural areas have gainedover 2 million migrants during the seventies, most ofthem fiom urban and suburban areas. Viewed na-tionally, three of every eight persons recently addedtosthe U.S. population have been rural residents. Thistrend distinctly reverses that of the sixties, whenpeople were leaving rural America, giving urban areasan overwhelming growth advantage..

This widespread tuTnaround affects most majorregions of the country. Remote and completely ruralareas are"growing as well as those that are partly.urbanized. High ilainers are the West, especially theRocky MOuntain region; the upper Great Lakes andOzarks regions; southern Appalachia; and Vorida.

.5ome rural counties, about one-fifth, cOntinue to'lose population. Most of these ere in the GreatPlains, Corn Belt, arid Mississippi Delta, but their .

rate 'of population decline is generally less than dur-ing the sixties. "

The reasons for this turnaround involve three inter-related phenomenaincreasing rural economic vital-ity, an increasing preference for rural living, and ruralmodernization. However, reasons for growth differ,depending on the area.

Oor Rural Areas,,More Economic ,VitaljtyRural resident§ now find more employment oppor-

tunities, largely because many companies haveestablished new operations or expanded existingoperations in rural areas. Between 1970 and 1977,nonfarm wage and salary employment increased 22.percent in rural areas, compared with 11 percent inurban areas.

The !elms rural aori urNin are osna tor Trorimetropoldan d rid met; oiilitdnareas for all statistres ri lhis Lhapler

P9t tcol,l< page.

15

a

f

Fidure 1

1

PoPulailon Chan& .

Percent EZD 'hied .11.970-76'4

1.5

1.0

.511 P

Tote Total Mptto Total . PtomainsNanmstro 'Ailieastr Pionedticent.

Counties Counties

Annual Averages

'Counties adjacent to standard metropolitan statistical areas asdefined in 1974. Source. U. S. Bureau of the Censias.

The types of employment have also changed (fig. 2).alob'seekers find more opportunities in service-per-foiming industries instead of the more traditionallyrural industries such at agriculture, forestry, mining,and 'nondurable manufacturing. Rural employmentcan no longer be equated With agridulture. In tact, in1975, agriculture accounted for only one-tenth oftotal personal indome,irf rural areas. Although theemployment mix in rural areas has become increas-ingly similar to that in (*ban areas, the rYpes of jobsin rural areas are still lower paying. Thus, average in-come in rural areas continues to lag beNnd that inurban areas.

People Prefer Rural Living-A majority of new,migrants cite the quality of rural

life as their main motivation for moving. They nolonger find urban life sajisfying, as evidenced by agrowing-wiiiingness to accept tradeoffssuch aslower incomesin moving to a smaller community.Most people who prefer a rural residence, however,would like it to be located within commuting dist4ceof a metropolitan city.

Income and PovertyThe relative income position of rural Americans

hos been improving. In 1969. 46 percent of the Na-tion's poor were rural, compared with 40 percent in1977. Viewed another way, in 1969, 16 percent ofnonmetro residents were poor, compared with 14 per-

3

Figure 2

ChanglnNonfami Wage md Salary Emplortiento March 970-77-Industry drou-ps'Mining a.

CAtmatructkm.....

f: Mandfeeturing' -7.3%

TCLit

Trade

FIRE*" ,

Services..Government

Total

4

1

N.N\s. \N\

.\'X

\' .7%

7.1%

\\., NN\ \"\\, N.,\N

ZN.\

.\\\1 ..

"Excludes about SO smaller standard metropolitan statistical areas.tTransportation. convnunications. and'utilitles groups. $Finance. Insurance, and real estate grOups.

Source: State empl5yment security agencies.

PA%

221%

WI%

32.1%

1111.Metro*

USI Nonmetro

29.7%

34.2%

-

cent in 1977. In metro areas, about 10 percent ofresidents were poor in both years, indicating thatpoverty is declining at a faster rate in rural areas. .

The slow but steady improvement in the rural in-come situation can also be seen in the slight im-provement in rural median firnil\/ incomes comparedwith urban. In 1969,.median family income in ,

.nonmetro areas was 77.6 percent of that in metroareas, while In 1977 it was 79.4 percent. The relativeimprovement is mOre marked over the longer paribdof 1960-77. In 1959, median family income innonmetro areas was only 71 percent of urban medianfamily incomes.

,

Rural Poverty stributIonIncome ls loirer in rural areas for all major racial/

ethnic groups. In 19r6, rural wh tes received'80 per-cent of the income of their urban coOnterparts, whilethe ratios for blacks end Hispanics were 74 percentand 85 percent, respectively. However, the incidenceof poverty among rural blacks (38 percent} and .

Hispanics (27 percent) far exceeded that of rural .

whites (11 percent). Thus, racial minorities comprisea disproportionate share of the rurald'poor, althoughthe majority of rural poor persons are %Mite (fig. 3).Indians, especially those'in rural areas, are severelydisadvantaged with respect to poverty level income.

4

A 1973 BIA survey reported an unemployment rate of45 percent for American Indians; the only mindritygroup still ptedominantly rural according to the 1970census.

Rural, poverty-is not eVenly distributeeregionally.Nearly two-thirds of the Nation's rural poor live in the ,

South. In that region over 20 percent of the ruralpopulation failed to earn incoine above the.povettylevel in 1975, compared with only 12 percent of,ruralpersons in, the North and West (fig. 4).

Areas of chronic and persistent paverty are alsoconbentiated in the South. This concentration isshown for 1 year in flg. 5. Indeed, 8 of 10 persistentlow-income'rural areasthose that have fallen intothe lowest 20 tiercent of rural counties by incomerank in each decade since 1993are located In thatregion. These ,"pockets of poverty" are characterizedby severe disadvantage and general economic under-development.

DifferenCes Between the Urban and Rural PooreWhereas urban poor families are most often headed

by females, by unemployed workers, or by personswho are not in the labor force, this Is no4 Ein appro%prlate description of the rural poor. Data from theSurvey of Income and Education indicate that poorrural families are heavily involved In_the labor force.

Figure 3

TotalWhiteBlack

, 'Hispanic

TotalWhfteBlackHispanic

'Preliminary.Source: U. S., aseries P. 60.

&SU Of the Census; Current Population Reports,

Figure 5

Total . NorthUnited States and West

Source: Current_Popplation *ions. series P. SO.

Nometro Counties With Less Thir $31500 Per Cwita 1ncóm,Iñ 1975-96..

212 counties(20.9%)

ALL U. S.272 counties

(11.0% of total)

-Percent oi nonmetro counties in the region,Source: U. S. Bureau of Economic Analysis,

Figuie'6

Functional iiiiteracy'by Race and Seg,inkfrionnititroAreas, 1975

Percent comiitetingIOU than 5 yearsof foithal Klutition

15

1-

Whlte=Blackram3

Hispanic.

Figure 7

-Percent of Occupied Pious ng Lackingbonviate Plumbirmkaildfor Cr9wded.1970 and 1976 ;

Petcs:n; *17$ I 1976,006

if Males .Females .

Source: Currecd Population Reports, series P-20. No. 207.

Four out of 10 ate headed by full=time workers, corn-pared with only a quarter of urban poor families, andalmost half have two or Tore workers. In contrast,only 16 percent of poor families in urban areas havetwo or mofe.workers, and almostThalf have noworkers at all. Thus, the income Oosition of manypoor rural families Is rigt associated with labor forceparticipation, but rather with the types of jobsavailable in rural labor markets or with the lack ofappropriate skills and traiiiing fpr better paying Jobswhen they are present.

Educational Attainment,The educational preparation of the rural labor force

is a major determinant of its relatively lower incomeposition. Formal educational attainment has increasedrecently; but rural students, especially minoritygroup members, are m'ore likely to enroll in schoollater, progress through school more slowly, completefewer school years, and score lower on national testhan students attending urban schools.

For exarhpie, only about half of rural(people age 25and older had completed high' school in 1975. Thiscompares with 68 percent and 65 percent of urbanmales"and females, respectively. Among rural minori.i,ties, high school completion is lower still; only about

.a quarter of rural blacks and Hispanics, age 25 orolder, ttave completed ashi h school education.

6

-

C

QUnited States Metro . NonmetrO

SoLirce: 1970 "struitaaltHousing Survey. U.S. Departments of Commerceand Housing ind Urban Development. *

Functional illiteracy is also a problem in ruralareas, especially among minorities. In 1975, 30 per-cerit of black males and 19 percent of black femafeshad completed less than-5 years of fOrmal education,the conventronal definition pf functional illiteracy(fig. 6),

Considering the information jwst presented, it isnot suprising..that relatively fewer rural residentsenter college. Regardless of racfr, College enrollmentrates of rural people were lower than those of theirurban counterparts. These differences changed'verylittle between 1970 and 1975.

H 01141.1)

Hollsing conditions in rural areas have improvedmarkedly since 1970. The4mber otoccupied unitsthat lackalicor4lete plumbing and/or were crowdeddeclined from 3.5 million units in 1970 to 2.3 millionunits 1n1976, The proportion of rural householdsodeupying such bad housing declined from 18 per.cent.tolO perceht. For whites, the proportionoccupying declined from 11 percent to7 percent; for b cks, from 58 perCent to 36 percent;

, and for Hispanics, 37 percent to 27 percent.kowever, by almost any measure of adequacy,

housing continues to be poorer in rural than in urbanareas (fig. 7). In 1976, 44 percent of the Nation's 5.1million homes that lacked bomptete plumbing and/or

I 8,

LI

e i* crowded were located.in rural areas, but _theseareas contained. only 32 Rercent of tha,Nation'shouseholds. Of the .1.2 million homei that lacked a'complete kitchen, 59 peicent werel in rural areas.Values and refits are only threefourths as high in

rural as they are.in urban areas..They are 'hummingmore ral;Sidlys.but startind-froma lpwer base value.\ The incidence of bad hoysing.(lackirig plumbiogandfor crowded) is 'closely 'related tp hdusehold.income, and is highest among the very poor,'Forexample, 41 perteot of the bad housingin rural areaS'was occupiedtby.households with incomes of lessthan $5,000 in 1976, but these households representedonly 24 percent of all rural hduseholds.

Although there has been a.rapid improvement inhousing conditions among most households, somehouseholds have not experienced improvement aSrapidly as othars. Groups for which progress hasbeen less rapid include blacks, Indians, migrantworkers, the elderly, and single persons. A BIA studyshows that in 1970, 46 percent.of Indian housing hadno plumbing and 50 percent was valued at only$5,000 or below. Blacks occupied 27 perOeht of thehousing that facked complete plumbing d/or was

-crowded in rural areas in 1976, up from 24 perãent in1970. But they occupieli only 7 percent of all ruraltiousint in bdth 1970 and.1976.

Much less sizable share Of the rural populationlhen..,(lltgle persons, 'for. example),.

Easential Ccirtimunity Services findFacilities ,

I

Aceesd to a reasonable level of etisentrifmuriity services and facilities is a major goal of rural.

.. developiftent. However, derrent.and ?eliable data ari,'not available with-which to rrkteeltre progiess towaidthis goat in all areas of service ision. Some-avail.able information is reviewed

LocalGovernment Ekpandltures.Per capita local government expenditures era often.

used as a rough indicato; of the levels of%communityservices available in the Nation. fhese figures Mustbe used cautiously, however, since the 'Aims of

et relative roles ofn s; and'age, sex,andbstantially between .

nsiclerably from one area,to another.

low.

inputs; the level of. effibiencyState versus locargovernmfamily characteristics Varyurban and rural areas and

Airong householdp occupied by eigerly oreinglepersons crowding is not i problem. But based-uponthe ctiteria di lack of complete plumbing, a 'patternN'of slower progress dimilar to that shown for theblacks was manifest. The elderly occupied 35 per-Cent of the units that lacked complete plumbing in,1976, compared with 32 percent in 1970. Singlepersonsmany of whom are elderly--,-occupied 36percent of the hclusing that lacked complete plumbingin 1976,.well *Jove the 26 percent in 1970. A recentrapid increase in the number of househoids in rural .

areas occupied by youn'g single peretans has contrib-uted to-the greater prominence of poor housingarriong thilse households. ,

Heasons for the lag in the improvement in 'housingamong blacks, Indians, migrant workers, the elderly,and single petions are many. The relatively 16w levelof income among th se groups is no doubt a majorfactOr. But thek lIrited access to credit, again partlydue to theffrtimite incorne, is of chnsiderable impor-

-\ tande. One prObleM here may be an institutional biastoward perpetuati n of lending practices of the past,when these partit r population groups either (1) didnot seek loans as çh because of their poor incomepositions or other faI.tçcs irf the past or.(2) iivere at

,: Nar.

Pale

In 1972, the level of per capita expenditures of. local governmenti in urban counties averaged nearly

11/2 times that of rural coUnties. Spending for individ-ual functions was also higher in urban copntiee, with .

.the exception of spending for highways, whereyurallocal governments typically spend more. Further-more, the, ()Vera!l gap in spending between urban andrural areas has widphed. In 1957, rural local govern-ments spent 86 percentl as much per capita as urbatlocal governments; in 1967, they spent 74 percentmuch; and in 1972, they spent only 69 percent asmuch.

as

Health pervices ,

ilecent years have seen increasing recognition of

th important role an adequate rural health caresy tem plays in rural development. A recent study ofrural Workers in theSou.th:found that labor health;was a major factor inhibiting participation in thelabor force.4 Over 7,0 percent of the funds of theErhilA Fssential Community Facilities Loan PrOgramwere for health care facilities .projects as of fiscal1978, reflecting the priority that communities givesuch facilities.

44,'Scoll, L , L Smith, and Fiungeling "Labor Force Parlicrpation in Southern

Rural Luber Markets.- American Journal ol Agricultural Economics, Vol 59.May 1911

. /.haracterlstIcA .01 the geniral rbral poPulation,

especially 10Wer'Incahlee-ana, lower educational '-levels, tend to cOmpound rural' health problems. Intiddition; the most Inevitable con4equence cif ouraging ,populatien fs the Increased need for health .

care. In 1965, there were.18.5 millionaptipole Over aget65, and bY 1975 there were..1.4 m1llIos tederly pect-pie, This produces a Wain on comuffltyhaIthresources. For thefeiready ininaiqulte health Syritdrnin rural troika, WhOre a gieater proportion.of thepopulation, is.agea, this strain.is intensified. Further-

,. more,- it is projected that, by the year 2000 the 1975It total populationyvilll have gro,wn 22.9.percent, but the

aged population will have giown,36.6 percent.Although cheracteriefics of the general rural

opuldtion are associateil with inadequate healthcare, niral areas arealk'unique imong themselves.One examPle of this uniquenest is the rapidly grow-ing 'cornniunfties near western coal operations whichrequire exceptionalty expedient development of theirhealtil systems in order to meet the .needs of thecommunity.

Two indi6ators' used by HtW to designate healthdare inadequacies are the MedicallY UndprioryedAr'eas (MUA's) and Health Manpower Shortage Areas(HMSA's). In 1977, aporoximately.27 percent of the-NatiOn'syopulation,realdedin rural arees, but over55.percent of all people in MIA's and 51 pettent Ofall-people in 4-1MSA's resided in these `areas.

The most commonly used measure of healthstatus-infant mortality-varles notably by region,'residence, and race. By region, the Southern Stateshave the highest infant mortality rates; in 1975, theSouth 'Atlantic States had a rateof 18.2 infant deathsper 1,000 live births, compared with a Pacific Statesrate of 13.8. By reSidence, infant mortality variesfrom the lowest rates in the,SMSA urban fringe coun-ties to the highest rates in the less urbanized'nonmetro areas not adjacent to an SMSA..By. rathe injant mortality rate in 1975 of16.1' deaths pe1,000 live births for all races breaks down to rates

' 14.2 for whites versus 24.2 for "all other" and 26.2'forblacks.

Minorities had considerably higher rates acrossthe country. For minoPitles in rural'areas, the infantmortality rates are critical. For example, in 1974 i-n .

Mississippi, the infanrmortalltrrate was 19.4 forwhites versus 39.7 for blacks.'

'Davis, K. and R Marshall. Rural Health Care In the South, Task ForcreVearn Rural Development, Oct. 1975.

8

I.

,Although health statio data indicatti that the

greate$t need for health resOUrces lain rural ar.the ate1 dietribution of these resources is a y-from ose arias. This" oofidltion,peisists despitelhe

, Jural-urben popalation turnaround and the specialliEw programs targeted-at imProving.health resourvs

undersirved areasjabl/a- 1 atiotiaJ. drainiati&diffethnces in pergonnel:pcipulatioo_ratios

between urbeh and rural areas.. .

8

Tabio i-Personmil and'hospitif bolds wir1-Qp00 populatioq b

,

TotaN,ionfederal physicians

rfsidenceinvaders pot

100.000 population

Notre' Nonnooo

in patientAare (1976)' 163.? 68.7.

Office-based practice 135.1 60.5General\ practice 20.2 24.8

Special Practiof 94.8 35.6Medical 30.8 10.1

Surgical 37.5 :17.0

; Other 26.4 8.6

Hospital-based practice 48.2 8.2

Registered nurses (1972)2z, 413 297

Dentists (1974)3 '60/*

37

Hospital bed$ ( munity,1976)3 440 410

..

'Calculations teased on data in Physlt an Distribution and Medical Listen-sure in the United States, 1976. AmerWn MectfGal Association,

'Calculatloris based an data in Health. United State* 1976-1977. Teal!'Resoijrces Actinini.stration, U.S. Department ol.Health. Education. and.yeffare.Pub No tHRAI 77-1232. 1977.

.

'CalCiilattons lo*Sed on The Area Rewurde File: A' Manpoiver planninç andResearch Tool; U.S. Department of He th. Education, and Welfare, 1976

Figure 8 shows the trend in number of physiciansper 100,000 population between 1940 and 1974 in thetotal United States, urban areas, rural arpas, andrural areas with less than 10,000 population. For thetotal United states, the physician-population ratiohas incieaseed over time, while rural argis and ruralareas with less than 10,000 population haveson-sistently behind. For the latter groups, thlratio ha tinually declined and worsened dramati-cally since 1970. .

The distribution of hospital beds appears to beequitable (table 1). However, rural hospitals are

20

Figtge 8

Ndniederai-Physiciens Per loopooPopulation, 1940-74

*

100

0

11\1\11\1%\\AMMASA

1940 50 60Years

Source: Economks, Statistics. and Cooperative Serviceealculftionusing 'HEW Area Resource File data.

70 74

generally older and smaller, iackiag in specializedservices and advanced technology, and less likely tobe accredited.

.Residential'and regional variations that workagainst rural citizens also exist in Medicare andMedicaid reimbursement. People in the East, West,and urban areas are more qkely to receive benefits

u(includin&larger benefits) than people in the South,1" ttie North-Central region, or rural areas.5 Over 80 per-, -

cent of guburban residents are covered by privatemedical insurance. In the central city, private coverage

low6r,--but many lesidents participaté-in theMedibaid program. Private medical insurance coverageis Aso low in rural areasi since many persons are .

self-employed of work for small firms that cannotafford to provide,coverage; but in this case the slackis not taken up as well by Medicaid. In fact, many ofthe rural poor are employed and are thus not eligiblefor the program.

Educational ServicesRural public schOol systems during 1972-73 ex-

pended less per pupil than urban schodi systems forall aCcount categories except pupil transportationservices. For example, niral.schools spent anaverage of $170 less per pupil for instruction than ur--ban central city schobls. Differences were also markedfor other categories, such as plant 'operation andmaintenance (fig. 9).

'

r

21

Flure 9

Averecie Expenditures Per PAO '1072- 3

fr

Aftministratior., -

ineiruction

Trahsportation

OperatiOnPl4tritactiMaintenance

Y\\\\.\\\\\\\\\\

.)

PeletmCentral City

trp

250 500 750 1000.Dollars Spent Per Pupil

Source: Statistics of Local Public School Syetems, Finance, .1972-73.Notional Center for Education Statistics, HEW, 1976 .

The funding difficulties experienced by ruralsehool systems have severe repercussions on the .

. number of support personnel such sy-stems are able*to maintain. Rural schobis'heve relatively few person-nel supporting the instructional function. In 197,1, forexample, three-fourths of rural school systems hadno instructional supervisors at all,. while only 2.5 per-

, cent of urban central city schbol systemi had-none.Comparableflgures for(tqe lac-k of other Support per-sonnel in rural and urban 'schools were: librarians41.8 and 1.6 percent; guidance 9oun4elors, 50.2 and6.2 percent; psychological.staff, 92.6 and 24.1 per-cent; audio-visual staff, 92.8 and 58.4 percent; andteacher aides, 49.5.and 7.5 percent (fig. 10).

It has been argued that the relative number of sup-port staff members is lciwcir In rural areas)becausethe.small size of many rural schools prevents themfrom employing full-time counselors and other pro-fessionals...Higher. salaries typically prevailing in bigcities also attract the most quallfidd professionals tothose areas. But the fact is'that entire rural schoolsystems do not have certain support staff membersat all.'

'Ely. I -Regional and Residential Variations in Medicare and Medicaid Reim.Pursements U S ClepartMent of Agmulture, Economic Research Service,Working Paper No. 7801. Oct 1977

ratoe. F rank Rural E dui:anon and uta LaPOr corise ii Ole Sereolid% U 5,Department of Agriculture Economic*. Statistics. and Cooperatives Service.Hurd! Devuldprnent Research Report No 5. Oct 1978

9

Percent of Sehool SysteileAupportuProgramel 1971

oPIttitarTristforg

Ubtarians

Cguuntlo rsPsychologistsAitdio Visual

Specialist»s

Teacher Aides

,..\\NNNX\\NNNN\\\\\\NN\

.//,"\\\\N\-0,.\\\\\\\\\N\\\\\\\\Nty,\v\\ss,:\\\\\:\\\\\\\VN:\\\\\\V

0, 1/4 25 50 75 . 100

Percent Lacking Support Programs

Sotice: Statist& of Local Public School Systems, Pupils and Staff,'Fall 1971. National Center for Educatlop Statistics, HEW, 1976.

Support services are mob) than incidential to in- .

struction; they provide human and material resourcesfor the learning process. Unfortunately, many ruralschool systemshave neither the financial supportnor the personnel to develop such services.

Rural children,jare more likely lo.enroll in schoollater than their urban counterparts, one reason beingthat proportionately fewer rural schools ofierbro-grams for 3 to 5-year-olds. In 1971, only 57.6 percentof rural public school systems reported havingkindergarten programs, compared with over 80 per-

cent of school systems in urban areas.Art far as special education was concerned, leis

than one-half of the rUral public sctiool systems pro-vided programs, compared with the vast majority ofurban systems. One reason for this comparativeshowing is that sparsely settled districts often havetoo few special children to justify offering ,the pro-

*am. Some States furnish tuitfon assistance to per-Is mit special children to benefit from programs in

qhearby districts.Rural students 4e also,disadvantaged when,

comes to access to learning materials because thereare no libraries in many schools, particularly at theelénientary -level. Once again, the smaller size-ofrural schools plus a scarcity of ftmds and personnelprobably account for def&ient library services.

10

11,

Water and *faEconomic efficiency milt, y precludseverxrursi

household from being *erred-ay 'a-public or privatewater or -sewer system./ Nonetheless, one indicatioriof the availability-of r tal sewer and water_services istheproportlbii ófhores served .by systjsmi in rural'areas compared wit the proporition fn urban areas.In 1976, 65 percen of rural householdi were senttlidby public or private water systems,. compared with 92percen1 of Urban imusehokle. The 85 percent rural'figure repreeen:r an increase from 62percent in1970. It is Intor. sting to note that only 84 percent ofthe rural hous g units that were constnkted during1970-76 were initially connected to a private or public-Water syste palpie 2). -

Sewer sy tems are lass available. than widersystems in rural areas...Only 49 percent (*rural haus-ing units vire connticted to public sewer systems in1976, corypared with 84 percent of urban housing

Tt proportion of rural tiousing connected topublic èWar systems in 1976 represented only aslight i crease from the 48-percent figure for 1970.Surprl ingly, less than 43 percent of rural housingunits onstructed during 1970-4/6 were,initially con-nect& to a public sewer system. However,.-thanges -

- in 1eotnoIogyärd a significant increase,in the use ofind vidual sewer techniques temper the alarm thisst tistic might otherwise raise. ,

hough rural use of public sewer systems has note panded rapidli, septic tank and cesspool use in-creased so much during 1970-76 that the numberofrural households without public or private sewer ser-vice declined from 2.4 million to 1.1 million. Further,99 percent of the newly constructed rural householdswere served by either public or private sewer control.

Passenger TransportationMany rural residentsespecjally the poor, elderly,

handicapped, and youngare isolated anii immobile,and face extreme diffiluities in gaining access tOjobs, health care,'sobi I services, shopping, recrea-tion, and friends. The rural mobility problem is corn-:pounded by the simple fact of long travel distances .and, consirently, high travel costs.

The prob em is strikindly portrayed by the follow-ing statistics:

Fifteen percerit of rural households, 57 percentof the rural poor, and 45 percent of the rural elderlydo not own an automobile;"52 percent own only asingle automobile, which means that other'familymembers are "lefi behind" When the breadwinner

22

I

Cable 2Availability of water anci sewer faollitios-In ybar-roend hovel nits, 11110-1

too isia4,, Housing wtth paSicprints us* system

or - 14*OIng otstlitpOblic

hatiekneteTs

. -!halm wow

1110.Thou.

111TOPct.

11176

Pct..

toctlob000vorloraThou. Pct.

1 TSwinds* Over

-1117.

All year round:Metro 53,606 7,527 91.0 91.94 7,338. 82.1 84.2 7,331Nonrnetro 25,710 4,095 61.7 64.9 3,351 479 49.2 2,391

New construciion':Metro 6,262 2,974 . 91.3 91.1 2,700 83.8 82.9 Z426Nonmetro 4,231 1,541 63.5. 1,062 40.1 42.5 723

'Units built 1970-76.SCH.: Bureau of Census, Annual Housing Survey 1S/76, United States and.Regions, Part-A. General Housing Charactertstica. Saris* H-1

I

. . .

uses the familylr to traVel tq and from.work;Only 313 of the Nation's 20,000 towns with a

populationvof 50,000 or less are served by a publictransit sys'tem;

Less than 1 percent of-rdral persons workingoutside ther-home-ese'or have access to publictransportation to get to Work;, !`

Intercity bus lines srve only about half of theNation's towns of 50,000 or less;_ Vice 1972, 1,800small towns have lost intercity bus titles;

Regulated air service carriers have droppednearly 200 service points (30 percent of the totalserved in 1960) in the last 20 years;

An estimated 60 percent of places with lessthan 2,500 population have ho taxi service; and

Rural residents must travel farther than their ur-ban cotinterpartp to gain access to medical care and

7 essential social aerviCisfor example, 20 riercent ofrural residents as coMparpd to 30 percent of urbanresidents must travel more than a halfhour tomedical care.

These statistica amply demonstrate that there is,no progress to report on in terms af the actual

. passeoger tranaport conditions. However, the follow-Ing chapters of this report.demonstrate that dramaticprogress is occurring in terms of action to meetthese problems. AS a result of this action, subs&

quent rural development progntss report* shark' beable to document an improved iuril transportationsituation. 1

ConcluilonMost objective measures of Socioeconomic condi-

tions show that the quality of life has improved Inrural America in recent years'. Data on population, in-come, employment, and housing ail show. Viet ruralpersons are better off than in the past. However,data on health care and,transportition Indicate aworsening situation in terms of acceis to theeeessential 'servidee. Even data showing progrpss inthe broad income, employment, and housingcategories.also show a persistence of rural-urbandisparity. They also-show that"pockets of poverty"remain and that certain groups of peopileincludingminorities, the elderly, and migratit workerscop:tinue to be poorer and more disadvantaged thanother rural peopfie. TO improve the quality of life fordisadvantaged groups, fural deralbpment policy-makers will need to target their policies carefully.Riiral America is extremely diverse and programsnThst..seek out areas and individuals most in need ofassistance If they are to achieve their goals.

At

White Hipse-,Runa lOtiatfreti

The President and Icily members of.the WhiteNouse staff have been very directlyInvolved in ad-dressing the developmeat prageins,of people living,in Small towns and rural areaa They' have reached

. out to learn. More aboul the'sonierns and needs of .rural people from a broad cross-section of rural ,

citizensand those representing rural interests; local'ancAState offidials; Federal Cabinet officers, agencyhewis, and program specialists; members of Con-gress; and others.

This outreach effort has revealed a striking con-sensus on the need to:

Better coordinate anii improve The delivery ofFederal, State, and local programs' in the areasof rural health, housing, water and sewer,transportation, communications, economicdevelopment, and energy.

Formulate a comprehensive national ruraldevelopment policy to provide a context for con-tinuirig problem solving, additional ad-ministrative reform, andpossibly new fegista-tion. *

Both of These tuisic needi are being-actively ad--dressed by key White House and agency staff. Thisamtion of the Rural Development Progress Reportillnents a sample of the initiatives that have and arebeing taken under the leadership'of the White Houseto improve the responsiveness of Federal,.State, andlocal go\fer'nment to the special needs and concernsOf those living In rural America. Both the AssistantSecretaries Working Group for Rural Development, 'under the chairmanship of USDA's Assistant-

. a Searetary for Rural Development, and the Inter,

.agbncy Coordinliting Council have assisted materi-

"- ally ,in the devetopment of thes? initiatives.

Rural Health Initiatives

Health care was chosen as the focal point of thefirst of a seriesof initiatives to make Federal pro-grams work better in ruralareas because of theacute health pioblems and shortages of health careservices' in rural America..

Three major White House initiatives have beenlaunched to address health care shortages.

%nal Health ClinicsUnder a new USDA-HEW agreement, the 5-percent

community facilities loans of FinHA are available tO

Pq bicknk pacie

unceentrite the coMitructiOpriMary care health centers I,rursti communitieshe ttthrenovated with FmtlA iuflls wit

renovation of .

ically underservedbuilt or

receive opetstingLmonies train HEWlind HEW wiH assure 'piaMint Ot medical manpower in the facilities. For thefirst'yeacof the project,-FrnHA hie set aside $25million for aplalicantrk who wish tOlaulkl or renbvate ;Oahmunity health canters or migrant health, centers.,'HEW estimateithif the.4-year project will result innearly 300 centerslo SON* -about 1.35.million twatresidents.

In thelirst 8 months after this initiative was an-nounced by the White House, 84 preapplitationsfrom 22 States ware received requesting Rea ',

.milliOn in loans. Some $3.4 million was obligated for14 tif these in 8 State*, and 19 preapplications Wereadvanced to the fortisl application stage..

Rural Health *upport StaffUnder a new agreement between the Departments

of Labor and Health. Education, end Welfare,,disad-vantaged rural residents will be traMed as preventiveand health supeort workers in rural areas. DOL will

. recruit eligible participants and underwrite training'costs, and HEW will providd training and entry-leveljob placement in community health centers and,migrant health center's. Participantsmill be trainedasanurses aides, clinic clerks, transportation officers,environmental health inspectors, health educators,and other positions In allied preventive and healthsupport fields. -

The HEW-DOL agreement calls for recruitment andtraining of rrilgrant end ileasonal fannworkers bygrantees Under Title Ill, Section 303, of the Cckm-prehensive Employment and Training Act (CETA).Under the initiative, 500 migrant and seaional farmworkfts will be trained to pro4ide preventive healthservices and then placed In migrant ancb appropriate.health center facilities in their home communities.

, Another part of the HEW-DOL agreement calls forplacement of Job Corps health trainees from flit*aieas In HEW-assisted primary caresfacilities in theirhonie communities. ,HEW and.DOL are developingcooperative arrangernents to identify work ex-perience opportunities and available job openingsrural health clinics for Job Corps members tralthe health services field. DOL will supplement thesalaries of work experience health trainees for up to26 weeks under the Jqb CorPs Industry Work Ex-perience Program.

13

T'S

I.4,!

_

Zdttr. q

%VP

-4 - 0.4.

(Assistance in implementing this agreement, and

the HEW-USDA agree'rnent-,will be provided by theNational Governors Association (NGA) under con-tract hith DOL. NGA has found that, while Statephave a great geal of interest in using Federal employ-ment and training monies for healthielated training,they have little information about federally financedrural health programs. Under the DOL-NGA contract,

..NGA will work-with HW, DOL, USDA, and Gover-Inors' offices to-provide.information and to assist indeveloping rural health service center programs, us-ing Federal employment and training resources. Aspart of this effort, NGA has completed a Catalog ofFederal Health Resources for State and local use inidentifying a wide variety of assrstance available forNealth Services and facilities.

flural Health ProfessionalsDuring the next several months, the White House

will be consulting:with those concercied with increas-,ing the supply of health professionals, particularlyphysicians, in rural-areas. The_purpose of the con-sultation wyl be to examine ways in which 'all leVctlsof government, the educational cornmunity, and theprivate sector can work cooperativelyyto improve therecruitment, training, and retention ca.-health profes-.sionals in rural areas. 4.

At.present, medical education is skewed toward

14

-rrt,

IP.

4vf

.44.

Irt

A ,_ -..,.

*

16., 1

-f,

.speciaided practice anoil the tise of sophisticatedtechnologyt both more appropriate to large medical--centers than to many small towns and rurpl areas.

'ttie White House, in concert,witli public, educa-tional, and private leaders Wilflook for ways o mem-

. phasize pi-finery care disciplines and improve aininglpfoc those students:who will praatice in rurarareas.

They will also explore ways in whiCh communitiesand States can work together to attract and Vainmedical personnel in sparsely pbpulated area's.

Ritral Housing Initiatives

ale

The rural housing initiatives were undertaken to ini',,prov the Federal response to rural Noising prob- .

lem through such means as innovative demonstra-tions to,meet special housing needs, pse of commonregulations and forms to reduce admlnistPailveburdens on local people and s5ve taxpayers' dollars,

...and steps to encourage local small town lending in-stitutions to take a more active-role in housing.

Congregate Housing tor the ElderlyUnder the rural housing initiatives, the President

announced on May 4 the commitment of $12.5million to fund 10 demonsifation housing projectsbe built as part of they-Farmers Home

AdminratratiOn's national rural congregate elderlyh4ing effort:Vider4he demonstration, FmHA willmeakejoans thrciugh fts rural reriferhouSing:prograrnto buirdlor renovate housing for senior citizens in 10sites.selected Oft the basis of need criteria such asthe percentage of elderly, minority, and poor popula-tion. HEW's Administration on Acting will makegrants to provide services needed by the residents toenhance their independence, mobility, and self-sufficiency. These service9nclude meals, transpor-tation, housekeeping, perbbnal care services, andsocial and recreational activities. ,

This demonstration will be part of a largeMffort ofFmHA and AoA to cooperate in implementing a na-tional program for cangrebate housing for tpe.ruralelderly. Through regulations, FmHA will require thateach congregate elderly housing project it financesthrough its Section 515 rural rental housing programhave adeduate supPort services plus other accom-

brtodationi to enable. rural senior citizens to have-soMe degree of independence and to preventpremaiure or unnecessary institutionalization.Developers will be required to consult with socialservice agencies to obtain asaistance in providingsupport services for elderly reSidents of thefacilities.

In imPlementing this national program, Fint-I.A andAoA will prepare brochures for developers and otherinterested groups that identify sources of funds andoater assistance related to support services for theelderly.

Housing Agency CoordinationIn another phase of the rural houSing

,agreements are being developed among HUD, VA,FmHA, DOL, and CSA to:

Better coordinate 'site development and con-struction regulations with i focus dn eliminatinginteragency discrepanties in such areas as thedesignation of subdivisons;

Accept each other's inspections;

'Develop and Institute unflorm forms for suchsteps as mortgageapplications and approvals,property sppraisaiv,settlernent statements, tenantcertifications, and'affirMative fair marketing plans;

Identify an'Ci eliminate administrative barriers to- the development and management. of multifamily

housing projects in rural areas by such means asconducting demonstrations which seek to transfer

' Ikk

oWnership,of projects to community?basedurganilations-;

Trainlocal. residents in:heusing rehabilitation,'and Maintenance; and

-

Work with regulatory agenclesta.encourage.local small to*n Iehding inStituticinstc tato, a-moreadtive role in hinising and ecdnOrnio deVelOp-.

Rural Water and SeWer Initiatives

On December 1; 1978, President Carter..aririotincednew Procedurea that dramatically simplify thedelivery of approximately S2.5 biliton in Federal waterand sewer assistance to small towns and rural areas.Participating agencies include the EnvironmentalProtection Agency, the Economic Development Ad-ministration, the Department.of Housrng and UrbanDevelopment, the Farmera Home Administration, andthe. Community Services Administration,

qince that time, multistate training conferehceshavb been held by the Federal Regional Councils toadirsaint Federal field personnel and State and localofficials with the.agreement and to ensure its earlyand effective implementation.

The agreement calls for the following ad-rninistrative reforms and simplifications:

When a coMmunity makes contact with anyFederal water-sewer agency, that agency will nowcOmplete a "community profile formr and send it tothp other agencies for review and comment, and.then, based on the comments it receives back, 'ar-range for a preapplication conference tietween thecommunity and all of the agencies which mightbecome involved in a Joint funding effort;

Adoption by FmHA and EDA of a commonap-plication form, common reporting and auditing re-

* quirements; the letter of credit as a payment method,and standard requirements to be included in con-tracts between communities and engineerLnCicips; \

Adoption by all the agencies of cornm*OhAttritriafor defining "affordable systemsr,'criteria whichlake operating and maintenance as well as debt ser-

, vice costs into consideration and which recognizethe disparity Of income levels among communities;

knphasis on "alternative and innovativetechnology" and cost-effectiveness principles to en-,sure that facilities are suited to particular communityneeds and circurristan5es;

pingle environmental assessments, single A-95

15

16

*,

reviews, and single construction Inspections for proj-ects ftmded by more thari one agency; .N 0 The use by FmHA, EDA, and HUD of the needs

: data collected by EPA every 2 years in a nationalsurvey; and .

ft Standardized and simplified compliance re- -

quirements with some.16 cross-cutting Federal lawsand executive orders ((or example, Davis-Sam:Iry arldEqual Employment Opportunity), together wjth singleagency determinations of compliance with these re-quirements.

These adrninistrative simplifications will greatlyreduce the paperwork burden placed on grant recip-

, lents, speed up the processing time of grant applica-tions., and save local communities and the FederalGovernment many millions of dollirs.

6Iso involved in the initiatives IT the Departmentof Labor! whose role is to assist In training 1,750workers needed to operate /mil community water

_and waste tr.eatment plants.goo.

4r-

Rural Transportation Initiatives

Op June 19, 1979,,the Whife House announce() aseries of initiatives to improve transportation in theNatiop's small townA and rural areas. The measuresannounced will assist and.promote social serviceanfi rural publie transportation; commuter air service,

,.

brartchline railroad rehabilitation, anti ridesharing(vanpooting). New initiatives annbunced Include:

Social 4ervicii mind Rural Public TransportationCommitments by various agencies to assist

rur l public transportation through the training andpla ement of 1,500 CETA workers and additional AC-TiO volunteers, arrangements between GSA and theFederal Highway Administration to Make several hun-dred excess or surplus vehicles available to ruraltraniportation providers each year, and the reserva-tion of Farmers Horne Administration loanguarantees to supplement DOT and HEW resourcesin meeting the spedial capital needs for rural transiipratiems;

Agreements-among DOT, HEW, CSA, and AC-TION to encourage the coordination of transportationservices provided by their grantees;

Cooperativeacti9ps 0y,the insurance industry,State regulatoty.ig6ncies, ankr theTederal Govern-ment to make in-suran'de mdfe available, flexible, andaffordable for social aervice and Public transporta-tion providers; ,

Measures to dramatically rfiduce the federallyimposed paperw rk burden on ransportation pro-viders by the ac'cobrttng, reporting, and billing re-quirements of social service agencies;

Cooperathre efforts by DOT 'aiid HEiqk to providetechnical assistance and training for social serviceand rural public transportation providers.

Air,ServiceAn agreement among CAB, FAA, EDA, FmHA,

and SBA to coordinate and target oCer $200 .millionin newly available grant, loan, end loan guaranteeresources of ,these agencies to commuter airlineswanting to enter akal markets and to small com-munity airports to upgrade facilities. Theseresources would supplement over $1 billion thartheAdministration hopes to make available between1981 and 1985 through a proposed amendment to theAirport Development Assistance Act of 1970. The Ad-ministration has also requested $100 million forfiscal 1980 for aircraft loan guarantees by FAA tocommuter air carriers (P.L. 95-504). An appropriationof $50 million is available foc the guarantees in fiscal1979.

This agreement will help carry out the mandate.ofthe Airline Deregulation Act of 1978, legislationstrongly supported by the Administration in the

- belief thqt the air transport- needs of rural areas will

be better served in the long run by smaller airlinesoperating with fewer regulatory restrictions thanapply to the larger local service carriers or trurik car-riers presently providing service. in those caseswhere the market will not suPport scheduled airlineservice, the Act includes provisions for a new sub-sidy program administered by the Civil A'ei'onauticsBoard to:

Guarantee essential air service for 10 years tosmall communities presentlAreceiving certificatedservice and celtaln others not currently servced;and

Provide kubsidies, if necessary, to any'airlineincluding commuter airlines providing guaranteedeSsential service to small commUnities. .).

,

Branchline RehabilitationAn agreement among FAA, EDA, and FmHA to

provide grants, loans, and loan guarabfees for therehabilitation of. railroad branchlines and to supportshippers on those tines given high.pribrity In Staterail plans. This initiative representsa major newpolicy priority in the" use.of EDA and FmHA funds.

a

RiciesharingNew programmaticefforti by CSA's community

action agencies, EDA-funded -ecoriomic developmentdistricts,.and the Extension Group of USDA'sScience and Education Administration.to activelysupport and promote carpooling and vanpooting inrural areas (technical asiistance and trainingmaterials developed ,by pcn and DOE will be madeavailable for these efforts)

Arrangements whereby hundreds of surplus andexcess vehicles will be macki availe614 to CSA, EDA,and USDA to support increased rideshiring;

The development of a)rogram by the EconomicRegulatory Administratio6of DOE to assure 100 per-cent of gasdline needs for vanpools registered withState energy offices during periods of shortagb:

.4. Clarification by IRS that passenger Pick'iip and,maintenance mileage are included as qualified vah-pool uses in' an effort to strengthen the 10-percentinvestment tax credit' indentive coetained in the,Energy Tax Act of 1978.

These initiatives were explained and discussedIN, a meeting held at the White House for Federal of- .

ficials, 250 State and local' officials, rural traneporta-tion providers, and others involved in the provision of,transportation services for the Nation's small townand rural residents.

17

Rural Cummunicotions Initiatives'4

On February 14, 1979, the President announced in-itiatives designed to overcome isalatiOn in furalareas through modern Communications technolThep) initiatives emphasize the need to providi:\li.financing and other measures to encouiage the fur!.fishing of facilities for television and other telecom-munication servItes to rural residents. _

Regulatory ChangesThe Department of Commerce's National Telecom-

munications arid Information Administratiof (NTIA)has encouraged the Federal Communications Com-mission AFCC) to use its iegulatory policies to en-courage the growth of rura1 communicationsfacilities, and the COmmission has started severalstudies or. actions on rules changes.Low Power BroadcastIngAt the request of theNTIA, the FCC has opened an inquiry into the futurerole of low-power televisioh broadcast stations andtranslators in rural areas. NTIA's filing notes thatover a million rural households do not receive ade-quate service on even one channel of television.More that) tw e this number receive only one chan-nel of serv e, and 80 percent of rural householdsreceIvtfiree or fewer channels of television service.By contrast, more than 81rpercent of urbanhouseholds receive four or mare channels.

Tile filing requests that the FCC ease legal,technical, and operational requirements which oftenserve little purpose in rural areas, but which increasecosts to the point &(aking television service inade-quate or unavaliable. InThal comments from over 70parties, were filed'by January, 197?. Reply, comments..

brJuly '1970;Cr.:in-Ownership Restriotlonsin response toanother NTIA requeSt, the FCC has started arulemaking, procedure to eliminate possible im-pedimentsito the developmentol'rural cable serviceby telephone companies in low-density areas. Allcomments on this action were filed by January 1970,and the FCC is now preparing a report on the pro-posed new rule.

the Commission's current rule forbids cross-'ownership of telephohe and cable television systemsunless a waiver is obtained. Although the rulebenefits largercommunities by encouraging dompati-tion through multiple service providers, it may havethe effect in very small.communities of denying ser-vice by the only provider wUII to serve these corn-

.Munities.

laT.

,p

REA IS testfry opt., !Were as a poistio replacement for the:copijer in cables used *? broadband communicedons.,tise of theglass Ntretwould lOwerthe.post of brOadband commuraceftwaand also Would tHflp the Nation conserve copper.

arhe immediate beneficiaries Oppe.proposed rulechange will in among the 3.6 milliOh households

, under the Rural Electrification Administration AREA)telephone programs.Satellte Earth StationsThe FCC has started ex-'mining the costs and benefits of the present regula-'4tion of domestic satellite Teceive-only earth stations..."Tfie Commission Is considering substantiii derigula-tion of the passive antenna devices by which manybroadcasters Ind cable television systeriis receiveprograming. All comments on this issue were filedby March 1979.

U§DA -l.oans and LoanIGusiantees

To.facilitate the finanVng of projects todemonstrate the technoTogical and financial feasibil-ity of extending brbadband telecommunicationssystems to serve rural America, the DepartmentofAgriculture has delegated to the Rural ElectrificationAdministration authority under the ConsolidatedFanti and AuralDevelopment Act for the financing ofCATV proje6ts with communttylaCilities.andbusiness and industry-loans. The transfer of thisauthority from Farmers Home Administration willenable applicants to obtain required financing by ap-Piying,to a single agency even when financing undermore than one statute is involved.

For the remainder of fiscal 1979, REA will haveavailable $3 million in community facilities loans and,$12 million in business and Industrial loanguarantees to support the construction of broadband

29

get

If

AWL

lacilities. These will provide an array of public ser-vices.in addition to cornmercialCATV service. Finan-cing can be,obtained by telephone systems, ind,epen-dent cable TV companies, and other entities.

To achieve the President's objective of making ser-vice aiailable to rural Americans living in the mostisolated areas of our Nation, REA will give priority tosystems willing to extend service in the lowest den-sity rural areas. Those obtaininb firianckng aftder thisprogram will be required to provide facilities for leas-ing to entities providing needed social services suchas electric load control, direct utility metering,telemedicifAI, and recreational and social services forthe elderly br shut-ins.

Aart.

Demonstratiohs and TrainingDuring fiscal 1979, the Federal Government will

provide at least $1.6 million to fund a variety -of pro-jects that use innovative telecommunications,systems. Thesrdernonstrations will test the feasibilaity and value cif these services for application to ruralareas throughout the country. Those services thatare successful must be incorporated into tontinuingFederal, State, and local prOgrams or inay be offeredas commercial servicei in the private sector, whereappropriate.

HEW's Telecommunications Demonstration Pro-gram has awarded nine grants totaling $1.075 million,of which six' have application to rural areas. These in-clude slow scanlelevision over telephone lines.to

*

provide heWtth, education, sod inforrnatioli services'to isolated rural areas in Maine,,Colorado, Montana,Wyoming, Kansas, South bithota, and Olpo. Theyalso include a communication and data stow*system for maintaining up-to-date blood stock infor .mation for rural hodpitals in'West Virginia, Kentucky,and Ohid. Education, information, and ieading ear-.vices will be provided via FM radio and cablVor."predomirsantly rural homebound and print-handicapped persons' is Virginia.

In addition, HEW and the CoMmunity Services Ad-ministration have awarded a joint grant to the fkla-tional Farmw6rkers Service Center, Inc., to provide a'microwave system for delivery of medical, employ-ment, and training services to migrant workerfamilies in rural California. CSA is providing $601,692and FIEW $195,315 for this project.

The Extension staff of the Department ofAgriculture's Science end Education Administrationand the National Weather Service of the Departmentof Commerce's National Oceanic and AtmosphericAdministratibn are cosponsoring an experiment at-the University of Kentucky which will permit farmersto dial up computer data bases via their telephonesand display the information en their television sets.The 2-year, two-countV,test of an experimental infor-mation 4torage and retrieval system known ai"Green Thumb" Is funded at about $300,000. Thesystem will make available constently updated dataon weather conditionsAand crop prices, and will 'pro-vide recommendations on use of fertilizer and othercrop treatment.

3o

19

Rural Energy Initiatives

In his energy speech to the Nation on April 5, 1979,the President reaffifmed the three basic goals of hisenergy policy: to increase domestic ener9y produc-tion, -to encourage greater energy conservation, andto stimulate the use of our vast technologicalresources to develop alternativeenergy sources sothat we can reduce our dependence on ipportedIn addition to his announcement of a phased pro-gram for decontrolling domestic oil prices, a plan toestablish an energy Sacurity fund through a windfallprofits tax, and additional conservation measures toachieve the goal of a 5-percent reduction in energyconsumption, President Carter placed an increasedemphasis on alternative energy sources, Includinggasohol, wood, small-scale hydr.oelectric, and _solar

energy. , .

Included in the rural energy initiatives to provide amore dependable and affordable supply 94 energy forrural America are:

An interagency, agreement to coordinate thetechnical assistance and engineering resources ofDOE, the Bureau of Reclamation, and the Corps ofEngineers with over:t300 million in fiscal years1979-81 grant, loan, and loan guarantee resourcesfrom FmHA, EDA, REA, HUD, and CSA far the pur-pose of encouraging and stimulating the .oenstruc:-lion ofup to 100 small-scale hydroelectriC projectsby 198'1, and up to Niprojects by 1985.

An agreement amon9 DOE, EDA, and CSA toprovide technical and financial assistance for theconstruction of up to 100 small-scale plants by theend of-fiscal 1981 to produce alcohol as a transporta-tion fuel (gasohol).

A Presidential directive to OSHA; EPA; and theBureau of Alcohol, Tobacco, and Firearms to coor-dinate and clarify application, licensing, and otherregulatoiy requirements and procedures, and tothereby dramatically simplify associated reporting re-quirements as they apply to producers of alcohol asa transportation fuel.

A $700,000 grant from DOE to the AmericanPublic Gas Association to initiate the first phase of aproject to teat the technical and commercial .

feasibility of utilizing natural gas from coal or shalein six demonstratidn communities (the totalgrantsubject to successful com03tion of the firstphaseisi$3:8 million); if the pilot projectsdemonstrate that dependable gas supplies can beproduced for residential, pommercial, and industrial

20

.4,

uses from these'unconventional" sources at com-petitive prices, FmHA, REA, EDA, and other agencieswill provide grant, loan, and ipan guaranteeassistance to eligible applicants te develop thisabundant resourcerfor local community andeconomic development.

Allocation of $1.25 million in DOE and EDAgrant funds to as many aS 20 rural economicdevelopment districts to develop integratedeconomic development/energy plans, and to givespecial attention 'to the potential of utilizing alter-native energy sources (for example, hydropower,natural gas f rpm coal, and Wood-fired power genera-tion) and energy conservation to stimulate develop-ment and create jobs.

A set-aside of 1,000 slot& from 6012s CETA pro-grarri for each of the next 2 fiscal years (1980 and1981) and establishment of special training programs;to place economically disadvantaged rural youths injobs created by the construction of small-scale 1

hydroelectric, gasohol, and unconventional gas pro-duction facilities.

Besides seeking to stimulate the development ofalternative energy resources, these initiatives reflectthe strategy, implicit in the President's April 5 energyspeech, to encourage a decentralized and dispersedapproaqh to energy development. The aim is toenabte individual communities, Industfarmers, farmer cooperatives, and otheusers to develop local energy resourcesutilization. This approach, which focuses on local in-itiative aridwhich is designed to test the viability ofalternative technologies, is expected to help manr,rural communities achieve dependable and afford:''able energy supplies and, in the aggregate, to play asignificant role in reducing oil imports.

In addition, special measures are being taken toassure adequate supplies of natural gas, diesel fuel,and gasoline to farmers and.rural Americans wha.have a special depeedence on these energy sourcesfor their livelihood. Theiie measures include thefollowing:

Under DOE's Economic Regulatory Administra-tion, 4 percent of middle distillate fuels (includingdiesel fuels) planned for delivery into a State mustbe set aside for redistribution by participating Statesto meet energy and hardship needs. Suppliers havebeen requested fa give first priority to agricultpral re-quirements for diesel fuel, with remaining suppliesto be prorated to other customers. If necessary,Presidential actlon will be taken under standbyauthority In the Emergency Petroleum Allocation

I parks,

or local

31

.

Regulations to ensure 'adequate diesel' supplies foressential agricultural users; and

Reallocation by the Economic RegulatoryAdministration of gasoline sapplies among majorsuppliers to ensure that,the needs of agriculture andfarm markets contimielo be given the highest uaerpriority, and establishment of relatively larger per-centages of gasoline supplies In the State rationreserve for those predominantly rural States whereresidents are highly dependent on the automobileand must drive longer distances than their urbancounterparts.

Rural Initiatives for Federal-StateCooperation .

The Administration has sought to bring States andlocalities into full partnership with Washington inmeeting the needs of small town and rusil America.

FmNA-State Coordinated InvestmentStrategies

To help meet this objective at the StA te;fel, theFarmers Home Administrationwith White House''Leadership,7-has signed agreements with sevenStates to wOrk together in a coordinated process to

6

supporf State and local priOrlties where these do notoppose national goals. The seven States are NorthCarolina, Florida, Arizona, New Mexico, New York,Arkansas, and_Vermont. Negotiations are underwaVIn at leaet foutsither States as well.

Typically, the agreements provide a framework fortargeting FmHA, State, and private investments inrural areas on a statewide batiks and In support of ,

the States' growth and development strategies.FmHA also works to assule the cooperation of otherFederal agencies in implementinp the investmentstrategy and in funding projects established as state-wide priorities.

,

RuraliDevelopment Planning SupportIn one of the partnership SttesNarth Carolina

FinHA currently spends some half a billion dollars.fdr loans and grants for housing,. community facill-ties, and other.rural development programs. Thus,thwagreement to coOrdinate investments representsa major step In using Federal resources in line withneeds expressed by local people. To assist the Statein implementing Its strategy, FmHA has awarded it a$50,000 planning grant under the Area DevelopmentAssistance Planning Grant program. The grant fundsare being used to develop mechanisms for focusingState and Federal resources, including FmHA's, on

2 1 .

AIL

,

the needs of communitiesimder 10,000 population.Thesergrant funds will also allow the State to skavey.the technical assistance needs of rural local govern-

, ment and to examirce the service delivery role of 'Rural Economic Development -.counties, the incentives which can be used to attrac ,- initlajivesagricultural-related industry to rural areas, and the

.

. As part of its regal initiatives, the White House la Ntzrole of rural transportation programs. leading an economic devetopment demonstration , .

program based on the recognition that Federal con- ILHUD Rurar Housing and Community Days mant struction projects can have a significant Impact onInitiatives human, economic, and community development. Only

The Department of Housing and Urba Develop- rarely have such rural Federal constructiOn projectsment has also selected North Carolina one of two been harnessed to assure substablial and lastingdemonstration Slates to work on the eli ination of benefits for project area residents: .

barriers that rural communities face in taining m Construction jobs have too often gone toFedtral housing and community development , "workers brought in by Phe contractors', becauseresources. (The other State selected is Washington.) recruitment and training of local workers was not

HUD will fund a five- to six-person rural develop. made a, high ptiority. -ment team (comprising commemity development, . G. Small and minority businesses have been frus-housing, and equal Opportunity specialists) to 'work trated.in their efforts to obtain construction-Felatedout of a HUD field office in North Carolina-with thr procurement contracts.State government, local communities, housing devel- Outreach, training, and placement resources ofopera, and finance institutions to expedite the flow federally fended services such as State einploymentof HUD resources to slinairtowns. The team will saekl` offices, CETA prime sponsors; aria community-action

ta3dards. The goal Is to assure that trfe $595 million.KEM;11),,housin9 and community development fundsaiipc*ed for rural North Carolina will be usedclakltly)and in line with community needs.

irreddiljon to the funds for the HUD field team,$340AC0 itigrant monies and up to 1,500 units of

4* lOw-inkokne housing will be made available over a .

2-year periodtd..participating communities, subatateregional bodies, State-level organizations, andforState agendies and focal governments. The monieswilt be usedbUlld\the capacities of these govern-ments to ldent fikanduse HUD programs. This tireeffort is designe4 to parallel the State's own hous'Iigand community dekeldpment plans developed asof the balanced growth strategy and will operate inconnection with such State strateglee

As part of the inifiathre,,ist :ii`projected that a "ruralbuilders" program and targetirtR of HUD insured andassisted housing programs can provide incentivespromoting an increased involVement of local builders

' and financial institutions in meeting rural housingneeds. At the same time, increased HUD-FmHA-VAcoordination will be devoted to the devetopment andipplication of more uniform procedurerand housingstandards. The demonstration experience will provide

. a comparison of alternitive delivery meohaniSms for .

mplementing HUD proWms in rural areas.

to simplify forms, provide extra technical assistanca,,Jdelegate to the field certain centralized responsi-

, baffles, and den-if:flop low-cost minimum property

22

agercies have been underutilized.Project planning has not been linked'to State

and local economic development planning and has

33

failed to support community planning efffrts tomitigate adverse impacts.

On March 15-16, 1979, the White House held aworicing conference to explore the prospects oforganizing an 4ntergovernmental 'effort to capitalizeon construction-related development opportunities inrural areas. Approximately 70 representatives lrornFederal agencies, State and local government, ruralinterest groups,.minority and community-basedorganizations, and labor organizations participated inthis 2-day conference. ,

Building on the insights and recommendationsthat emerged from the cOnferenceethe White Housewill launch a national demonstration program toimplement a development strategy in conneetionwith 5 to 10 major Federal construction projects. Theoverall goal is. to better use existing Federal corn-mitMents- to Major construction projects to provide

, greater benefits to the people of the rural areas inwhich they are lotated. Specific goals are to identifyand institutionalize ways to see that public worksconstruction encourages economic growth_and raisesliving standards in the-impaqted areas. Three areasof special concern will ,be addessed:

Employment: To maximize the employment ofpersons who live in the project areas, especiallyMinorities, women, and the economically disadvan-taged;

Smell Bust-nes-a/Minority Business Development:To maximize the use orbroject area small/minority,businesses in the procurement of project-relatedgoods and services, and in long-range economicgrowth.and activities;

Community Development: To Mitigate adverseimpacts of project construction oh community ser-vices and facilities, and to improve the living environ-ment.'

Rural Development PolicyThis Administration has taken a number of steps to

make existing Federal rural development programswork better. This has been done at a time when ruralareas as a ,whole are-experiencing rapid growth anddevelopm-Int, causing problems of unplanned rapidgrowth in iome areas but also reversing decades ofrural autrnignition and economic stagnation. At the.same tirnerrural Americans still experience a.dispro-portionate concentration of poverty and othOr eTess-ing human problems.

A 9,hronic problem that the White House hasdir*6ted its efforts to is the maze of Federat,grantassistance applications, requirements, eligibility

;

34

standart4aidits, and deadlines that have burdenedsmall town and arra! officials ana have made it nearlyimpossible to address rural problems effectively.. The White House Initiatives that addresi this prob-lem are part of the groundwork for the formulation ofrural development principles and Oats flexibleenough to effectively meet the'diverse needs of ruraland small tpwn America yet direotive enough to meetthem within the frameworic of national objectives.The White House has Sought and is continuing toseek advice and assistance' in this effort from avariety of sources, These inclyde:

Congressional leaders

The Congressional Rural Caucus

Rural interest groups and field visits to ruralresidents

Cabinet officers

The office of Management and Budget

Conclusions and recommendations from theseconsultations and, experience frorn the White HOUseinitiatives are being used to form the basis for a setof overall rural development principles.and goals toguide the future actions of the Administration. Asthe President saidin announcing his plan to articu-kate these principles, in his January 1979 State of theUnion message, they will provide focus, direction,and priority to the myriad of separate Federal actionsand policies, so that we can more effectively work to:

Overcome the problems of rural isolation;

Promote economic development;

Meet basic human.needs;

Protect the ,quality of tural life;

Assure equity in The administration of Federal #

programs for which rural Americans are eligible;and

Build a more effective partnership amongFederal, State, and local governments and theprivate sector in meeting locally defined ruraldevelopment priorities.

Furthermore, these principles-will also be ad-dressedin major Administration.lnitlatives for theentire Nation:Specifically, the Administration willmake certain that the rural perspective is consideredas initiatives are developed in such areas as welfarereform and a national health plan.

23

4. Farmers Home Administration

Introductionih August 1977, tecretary Bergiand merged the

REiral Development Service into the Farmers HomeAdministration as part of a larger effortto streamlineand consolidate USDA's management structute. Inthe rural development context, the step wissigned to enable the Assistant Secretary for RacalDevelopment to use the leverage potential ofFmHA's $16 billion investments (estimated fiscal1979 level) to more effectively carry out the leader-ship and coordination mandate of Section 603 of theRural Development Act of 1972. The merger led tothe placement of staff responsibility fOr Section 603within-FmHA and provided FmHA with a ruraldevelopment policy management capability. Thesedecisions have assisted FmHA in converting into adevelopment agency that can focus its resources onhigh priority rural problems identified by the Ad-ministration, and influence others to adapt a similar

To change the direction of FmliA, the agency hasestablished four overall policies:

To target agency resources to the most dis-tressed communities and poptilation groups and tothe most critical fungtional problems rather thanspreading resources thinly across a broader range ofproblems. Target .areas and populations of particularconcern to FmHA include the poor; the unemployed;disadyantaged blacks, Indians, and Hispanics;women; the elderly; very young adults; places thathave been losing populalion for sornallme; placeswiih seriously inadequate public services and facili-ties; and places where overly rapid population growihis causing ss4.1ous defic)encies in public servicelevels.

To place high priority on the development ofèooperative arrangements with other Federal,,State,and local agencies as well as with community-based organizations, public interest grat'ips, andothers in order to regolve problems of coordinationand facilitate the.development of joint investmentstratsgies.

To use FmHA funds to. Inthice other public andprivate secfor institutions to channel more invest-ments to the most critical rural problems.

To'meetriiral needs better by improving FmHAprogram services and cost effectiveness rather thanby relying on increased program expenditure levels.

In other redirection actions, FmHA has:Changed the agency's substate district bound-

aries to correspond to formally recognized substateshe

35

Pq 21-1 6 Ian k page_

planning and development district boundaries, andtransferred loan-making authority for community pro-grams and multifamily housing progfams from countyto district level offices. These changes allow FmHAactivities tatAte more closely coordinated with relatedrurakdevelopment-actiVities within the4istricts. Theyalso reinforce agency policy that district directorswill work closbly with substate and local.governmehtpersonnel.

Established six area (multistate) coordinatorpositions to help implement new agency policy direc7tigns by improving coordination between the FmHA rnetional office and State directors.

Undertaken efforts to eipand FmHA personnel'sunderstanding of the agency's development role andto.piovide needed orientation and support 10 otherswhose.work affects rural development. To this end.Fmf-IA has:

Initiated specific rural development orientationand training efforts to help more than 1,000 of itsemployees understand and take on thelenewdevelopment respons4bIlitlei. More than 600district personnel, all.State office program person-.-nel, Slate directors, and national program headspihicipated in these efforts: In national workshopsat St. Lotitis and.Denver, for example, FmHA Stateand national office program'administrators havefocused on rural development and how FmHA canreach the-most distreseed and disadvantaged andmake its investments be more responsive to State.and local priorities.

Planned further rural development training fordistrict directors and assistant district directors,; .

substate, State, and local representatives ofgovernment; community-based organizations; andthe private sector to expand the agency's develop-mental effectiveness.

The remainder of this chapter discusses additional.FmHA initiatives taken to implement its new policiesand redirection emphases as well as Several newinitiatives mandated in recent legislation. As a con-text for the discussion, it should be noted that byJune 30,1979, about $6.5 billion of .the FmHA pro-gram budget for fiscal 1979 had gone for farmoperating, ownership, emergency, and otheragriculture-related loan progams. Some $4.9 billiontia0 been used for elementi of rural developmentother than agriculture: housing, water and sewerfacilities, other community facilities,- and businessand industrial development. Of this $1.I.4 billiontotal, about 93 percent has been in the forni of loans

25

to be repaid with interest. Historically, these pro-grams have experienced a loss rate of less than 1percent.

These resources are deployed through a staff ofapproximately 8,000 permanent fulf-time employees,including those in 46 State offices, a planned total of302 district offices, and more than 1,800 countyoffices serving every county or parish in the 502States plus the Pacific Trust Territory, Guam, PuertoRico, and the VI:gin islands.

Policy Management SupportThe explicit provision of a small Fmll'A staff to pio-

vide rural development policy management supportto the agency and to the Assistant Secrefary forRural Development for his efforts wiihin USDA aswhole as well as for his work with the White'Houseis an important but less visible.rural developmentinitiative of the Department. Policy managementsupport in the form of research is utilized to identifythe most severe rural problems and the most dis-

_ tressed rural. areas, and to improve analitical toolsprogram managers can use to target Fesources tothese problems. Staff support also Providestechnical assistance tp those negotiating .joiritinvestment agreements. Finally, Policy managementsupporrin the form of informed rural advocacy helpsensure that problems sternOng from the widaly dif-fering rural settings, the sMiller scale of ruralcommunities, and the dispersed settlement patternsof rural areas are adequately addressed in legislativeprovisions and,Federal prograhl regulations andguidelines.

4Research

National policyrnakers nee'd to be fully aware of themultiple rathifications of rural. development problemsand policies, including their effects on urban andnational development. Because of severe gaps indata availability and research coverage of toPicsneeded to make these judgments, Frni-IA has insti-tuted'a series of mission-oriented Tesearch studies,as well as an effort to stimulate the research corn-reunity's Interest in nationally significant rural

oblems. The agency has used USDA's researchcapability to the maximum extent possible and hassupplemented these efforts with those of.the policymanagement staff and part-time consultants andontracts.

ddition, the Housing and Ommuoity DeveloP-ment Act amendments of 1978 required that FmHAconduct Three studies:

, 28,

1. A study is underway to determine the approxkmate number of rural households without accesstosanitary toilet facilities and/or potable water. DatafrOn1 FMHA, USDA's Economics, Statistics, andCodperative Service, the Council on EnvironmentalQuality,'EPA, and other sources are being collectedand Interpreted by a consultant under contract toFmHA. The final report to Congress will includeacost estimate for providing these necessities. .

2.. A request for proposal has beeo-issued for astudy onathe.costs and nature of problems related toremote title claims and encumbrances and the (bipedthis legafrproblern has on lhe ability of iimitédresource and minority landowners to retain posses-sion of their property. At-present, FmHA is usually'precluded from making loans to landowners with titleencumbrances.

3, A study of the housing drid housing neFids ofmigrant and settled farm laborars is being planned. Acontractor will be selected from a list of SmallBusiness Administration certified minority applicants.

'? Technical Assistance

Joint investment agreements between Federaldepartments and agencies or between federal and.State'or local agencies require a substantial

'effort In identifying opportunities for coops ation, ,

conceptualizing the nature of the joint effort, encour-aging support for aCtion on the part of Managers ofthe involved programs, and resolving the many tech-nical and negotiating problems usually encounteredbefore an agreement can be signed. Provision ofthese kinds of support is one of the major policymanagement support functions in the redirectedFarmers Home Administration.

Rural AdvocacyRural adv,ocacy is a critical element of the rural

development leadership efforts of FmHAct mandatedby the Rural Development Act. These eff s are aim-ed at identifying and focusing greater attention onspecific rural problems and needed programmaticactions; elevating public understanding and political,action regarding rural America's situation to the levelthat equity demands; and identifying specific hinder-ances to rural development, such aslegislative initia-tives and funding formulas that lack adequate ruraPurban balance. Fml-rA staff members also serve asrural advocates in support of new Adenlnistrationpolicies. Under this Administration, they have per-formed this function with regard to a number ofihitiatives that are significant for rural people and

36

were either originated or firmly supgorted by theAdministration. These include the Rural Health ClinicServices Act of 1977 and rutal-specific provisions inthe 1978 amendments to the Older Americans Actand the Housing and Community Development Act;the Surface Transportation Assistance Act of 1978;the Airline Deregulation Act of 1978; and CETA legis-lation.

The agency's rural advocacy work also includeseefiential and close interaction with other groups tohelp better define the probleme and possible solu-tions. For example:

The agency now conducts quarterly meetings'with public interest groups to provide them a forumwith the FmHA administrator. Ail known' rural advo-,cate groups are invited.to participate. Separate ses-sions with the farm interest and housing Thterestgrotips are also held.

FmHA sponsored a national stratiO meeting onrural aging held.in early 1979 in Des Moines, Iowa.The meeting was convened by the Iowa Lakes AreaAgency on Aging and the National Association of

3 7

Area Agencies on Aging. A principal outcome of themeeting %vita the formation of a national rural agingcoalition thatmvill serve as the Neal point for imple-menting the conference's recommendations. Inter-agency funding to support thoicoalitlon Is comingfrom the Comniunity Services Aarnipistration, HEW(Administration on Aging), and the Department ofLabor.

FmHA,.Extension, HEW; Da, and the nineStates in Federal Tegions VI and VII sponsored thefirst National Rural Emergency Medical ServicesSymposium, held In May 1979 In Oklahoma City. Thesymposium led to the devilopment of the Mid-America States Rural EMS Council. Also-, in conjunc-tion with-the sympostign, the U.S. House of Repre-seOtatives Select Committee on Aging held hearingsin Oklahoma on the problems of senior citizensgaining access to emergencyinedical Aervices.

FmHA identifieg job placement opportunities InUSDA operations around ,the country for participantsin the four Department oif Labor Rural NatiprialWelfare Reform Prbjects.

2 7

Targeting

Farmers kome ^has a moral commitment to betterserife low-income people and a practical commitmentto reduce inflation by making better use of its limitedfunds. Thus, the agency has deterMined that it will.target its resources to the maximum extent feasibleto the most distressed rural people and communities.

A significant impetus-to this new Policy was astudy of rural housing copditions and Strategies thatthe President, durihg 197Y, requested that USDA ahdOMB undertake. FmHA and others in USDA,,with theassistanc'e of OMB and HUD, completed the studyAlternative Rural Housing Program Strategies forFY.1.976 to FY 1980"in early 1978. The studydemonitrated the need for FmHA to target its rurali3riaising programs to very low-income senior Citizensand famillds, particularly those living in substandardhousing. The study also provided the impetus for anumber of actions serving low-income people, in-cluding:

The basis.for increased apPropriation requestsfor the Section 504 home repair loan and grant'pro-gram, the Section 514/516 farm labor housing loanand Vile program, and the Section 523 self-helptechnical assistance program, and

The thrust to change agency regulations toaccommodate targeting FmHA services toincome and minority recipients.

Certain programmatic constraints that are notundesirable in themselves limit the degree to whichFmliA can currently target its resources. Agencytask forces are reviewing program guidelines to iden-

' tify regulatory nd procedural changes needed toreduce or remove these programmatic obstacles toeffective targeting., .

Severe data conitraints to targeting are also beingaddressed through such means as a study, in processto develop better means of measuring the need forFmHA programs. This Needs Assessment CapabirityStudy, being conducted under contract by the CensusBureau and a private firm, is developing empiricalmeasureS of program needs for each FmHA programrased on indices agreed upon bypanels of expertsin each region of the cRuntry. These measufes willsubsequently be testediand refined. These refinedmeasures of needs should be available for the fiscal1980 targeting process. Tihe agency, nonetheless, isproceeding with a nuMbefr of actions to carry out thepolicy of taleting, as indicated b'elow.

28

t.'

State PlanaIn addition to basing State fiscal 1979'fund alloca-

tions on more refined criteria reflecting the agency'stargeting policy, th e. national office establishedprogram investment objectives dIrectedIowardincreasing participation in FrnilA programs by themost disadvantaged rural people and distressedcommunities for each program, and directed each-State office to establish State investment objectivesthat meet or exceed national objectives whieteverfeasible. To assist State directors in preparing theirState Investment plans, the national office supplied avariety of county level data to enable investmentdecisions that consider' need as well as demand.These include estimated unemployiment rates for themost recent available year and quarter, data onrecent population changes, per capita,income, andincome estiMates by minority scatus; other data onminority populations; and data on families living in.substandard housing, number of farms, and tenure offarm operators (owners, renters, tenants, etc.):

In additio6, State ditectors have been encouragedto gather additional -data and information on theirStates. All State directors are to make use of,thesekinds of data as they establish their targets andidentify specific operational goals that they need toemphasize within their States.

clutreachFmHA field staffs are being encouraged tà engage

In or provide for outreach to distressed communitiesand dis4dvantaged people since those most in needare often least likely or able to apply for assistance.An important task off the'State directors in the devel-.opment of their State plans is the assignmept of themqst staff to counties and districts with particularlylarge distressed populations. The aim is to give alleligible rural people opportunities to participate inagency programs, while making special efforts tooverCome the previous lag in applications from popu-lations or areas with the greatest need.

Even with special efforts to locate staff whereneed is greatest, the agency itself cannot in everycase provide the type of sustained, person-to-personservice necessary to reach the very needy. A pilotproject in northwestern Louisiana is using a federallyfunded community-based organization to perform theneeded outreach fdr FmHA In three parishes. Thestrategy is working so well that the' plan re nowbeing promoted throughout the South lifentral regionof the country.

38

4-N

-14, 04-7

, !1'

4IN 440

A Sift, Alaska supermarket owned and operated by V. kfardee Wistoyer and her &ugh*, Camlyn tlansrack was cdniiiiicied witha loan'guaranteed under the FmHA business and industry loan program. With the eMiepreneura ate Sen. Wks Gravel WV, DeptityAssistant Secretary of Agriculture for Rural Development Henrietta Sktgletary(center). and FmHA Stale Mectok John Roderick.

a

Intensive training for FrnHA State Indian coordi-nators and other recent actions to strengthen eachState's FmHA Indian outreactiprogram are alsorepresentative of the agency's efforts to increaseservices to the disadvantaged. Additionally, in twoStatei with particularly large indianipopulations, theIndian coordinator will be supplanted by a reserve-tion programe specialist, who will work full time incoordination and outreach. In another State, withfour reservations, an FmHA Office of Indian Affairswill be established, with the director having fullauthority for ha/Idling and approving FrnHA load's orgrants to all jndiaris in the State as Weil as fore gaging in special outreach efforts. The establish-

nt of this sincile office for Indian reservations will!so provide a central point ,for the development of

jqjnt investment strategies with EDA, \EPA, theBureau of Indian Affairs, and other institutions withdevelopMent resources.

Additional ActionsIn addition to taking the agencywide targeting

actions previously discussed, Farmers Home hastaken the following steps to assist disadvantagedpopulation groups and distressed areas through in-

.;dividual.programs:

targeted, for the first time, .$50 millickn forwomen and $50 million fOr minority group"members

..er4, . 6

under the business and indWitty guaranteed loan pro-gram for fiscal.year 1979; :'.

Targeted $100 million of thii.B&I loan guaranteefunds forliscal 1979 for modernization and upAradingof rural business centers. bmalliatiA operatiOns Inrural oommunities of less than 1000 population willbe emphasized in this new effortInstUnulate ecb-nomic development in -rural communities withdepressed or out-of-date bilsinessceniers.

Targeted an additional $100 million for job-producing enterprises in deeply depressed areas.

Implemented a new "limited ksource".loan pro-gram for farm families whose farm operations andresources are so limited they cannot afford theregular interest rates for FmHA faFm operator or realestate loans.

Implemented a new rental assistance programthat will provide rent subsidies in 1078 and 1979 tonearly 43,009 rural low-income families to enablethem to live in FmHA-financed rental and labor hous-ing projects:Through-the rent subsidies, which aremade to farn,Wes whose housing costs 'eXceed 25.percent of their adjusted income, more laiw-indom$ 4people are being given access to rental housing inrural areas.

. .

Increased the proportion of Section 502 housingfunds lent under subsidized Interestrates from 63

29

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Li

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percent in fiscal year11978 to 70 percent in fiscal.year 1979,

imolemented August 1978 legislation that ,increased tom 50 percent to 75 percent the share of

project costs paid for by FmRA water and waste pro-ject grants. This change, implemented October 1,1978, allows more distressed rural communities topartIcipate in fhe ibgram.

Revised =regulations for Hie Section.515 rural'rental housing Program to extend eligibility to thehandicapped. Filed on May 11,i1979, the final rule.noW allows the program to provide for housingespecially designed for the needs of both the elderly,and the handicapped. The program is being expandedfurther in fisal 1979 to kiermit financing of congre-gale housing whose developerS provide for groupsupportive services to enable independent living bytenants needing these serviced.

increased the amOunt and percentage Of sub-sidized Section 515 rental housing funds that serve

_ low-income renters;;the percentage of subsidizedfunds was 94 percent a's otMay 1979.

Increased the.level.of Section 504 low-Income:: housing repair loans ahd grants from $24 million in

fiscal 1978 to $43 million in fiscal 1979; Section 514= loans and 516 grants for the farm labor housing pro-gram from $17.5 milliOn to $71 million; and Section.523 self-helf technical assistance grants from $9million to $13.5 million.

Revised "gobd credit history" application proce-dures to ensure equal credit opportunity availabilitywithout discrirniciation, .

Under leadership of USDA'a Native Americancoordinator, a position plided in Fml-lA in 1978,'sponsored with other USDAsagencied, the CommunilyServices AdminIstrat.4,.,AOTlONand the Bureau ofIndian Affairs a national Indian ariculture con-ference in February 1919.i intensified efforts td identify opportunities for

targeting on functiohal probleens with other agencies.for examine, under a-recent FmliA:EPA agreement,FmHA is giving high priority tO water treatment ,systems assistance tQ 'communities identified byEPA as needing assistanCe to meet requir'ementsunder the Safe Drinking Water Act.

44'Placed new empbasis on the moratorium provi-

ditit of the Section 502 rural -housing program, whichhelps 19wincome borrowes eiperiencing temporaryeconomic difficulty to rernai:n in their homes, andrevised the regulations to expand,"eligibility. The pro-

"vidion allow"s loan payments to be Jemporarily

di 0

I.

Suspended when,medical-problems; loss of jobs, orothefemergencies prevent paymenf.

Accelerated the recycling of acquired housing- property as an additional way to help low-income

home seekers obtain a home. Since recycled housingis-generatly less costly than cemparable new Oon7straiion acquired property provides housing at anetfordable cost to those with greatest needs.

Published final regulations on June 22, 1979, forimplementing the Technical and SupervisorY"Assis-tance Grant Program,authorized by Section,525 oftthe Housing and Community Development Act of'

T. 197.8. This $2.5 million progFam will enable publicand private nonprofit orgánizettons to,help low-income families became aware of and apply for'available Federal,State, and local housing assis-tance in rural areas. It alio will provide financialcounseling to low-income homeowners experiencingserbus problems'in meeting home mortgage pay-ments. Some $15'Million of the $2.5 million will betargeted to the 15 ,States that have the greatest needas evidenced by the incidence of poverty-levelincome and substandard housing.

Began assisting farmers with limited resources;'as well as.other farmers facing economic distress, by

voektterin'g economic emergency loans under a new $4billion program autfiorized under the Agricuitural

, Credit Act of 1978. The program will run through May15, 1980, to asSisefarmert caught up In unmanage-able debt due to economic conditions beyond theircontrOl, with results that cause hardships to ruralcompunities as well.as the farmer.

In support of the Secretary's commitment toassist iimited-resource farmers and farmers in -distress,' FmHA alio has:

Directed Slate directors to.target at least 25,perpent of their fiscal T979 farm ownership andopkrating loans to limited-resburce farmers. ThisshOuld result in over $400 million in loans to thissector; a substantial increase in the percehtage ofloans to minorities and women is also expected.

-7- Directed tharspecial consideration be givenfarmers linable to Take payments on exislin,gFmHA loans because of severe eConomic or otheremergencies., Under this directiye, payments havebeen deferred, extended, postponed, or otherwisestretched to enable far ers with a,reasonable.apacity to stay on th land.

7=`. sItt

0' Farmers Home a o had a lead role in 'the USDA-

a,

C$A 1978 small farm conferences discussed in thefollowing chapter on USDA initiatives,

Joint inv-estmenttrategy,Agreements

FmHA hai been implementing and carrying ouf*his Administration's objectives of establishing'closer working relationships with State; substate,and local governments. The Assistant Secretary forRurarDevelopment advised the Governor of eachState of the State FmHA allocation for fiscal 1979and aiked the governors to work with FmHA in pur-suit of many of its obtectives. This action was, fol-lowed up by the FmHA administrator in an.addressentitled "An-in`vitation to the States" given at the na-tional meeting of the Council of State CoMmunity Af-fairs Agencies. The invitation has algid beenreiterated in humerous informal exchanges with theNational Governors' Association, Specifically, Fmlikhas stated that it wants its investments to reflectState and local priorities for development, providing

ltiese are not inconsistent with FmliA's nationalpriority to serve the disadvantaged and such nationalpolicy considerations as retention of prime farmlandand protection of the natural environment. .

State directors have been asked to.include in theirState plans opportunities to convert FmHA program'

,Presources into a leveraging tool to-induce joint ruraldevelopment efforts with the States and units ofgovernment below the State level. To generate thesejointInvestment strategies, FmHA State directors are.beirtg encouraged to establish direct communicationwith the Governors' offices, industrial and economicdevelopment authorities, departments ofipommunityaffaiis, and other State government offialliils respon-sible for State community and economic develop-ment programs.In addition to the Joint investment strategiesdeveloped with States and disCussed in the chapteron White HouSe initiatives, a joint agreement hasbeen reached with the Appalachian Regional Com-mission. This agreement formalizes an existingcooperative relationship in order to further the imple-mentation of FmHNs;new policy thrusts. The ARC Asresponsible for a significaqt part of the local devel-opment efforts of 69 local development districts(Lbp's)comprieing 397 counties in 13 States. Throughits annual action program, ARC brings jpgetherpublic and private representatives, wàrKing throughhe LDD's,-to formulate strategies and ifrogram andproject funding priorities. Under the new agreement,

1.1

31

FmHA State directors, district direc tors, and county,supervisors will take State and local priorities fullyinto-account ribt only to avoid unnecessary and costlyfragmentation of efforts but also, through coopera-tive efforts, to multiply the effectiveness of FhlHAoutlays.

In each of the ARC States, the FmHA State directorand the GovernorsAternate to ARC will constitute atask force to carry out complementary approaches toirural development. For example, ARC will providetechnical assistance to FMHA-funded housing andcommunity facilities programs and projects. FmHAfield peisonnel will serve on LLD-sponsored tech-nice! advisory committees. And ARC and FmHA willsuppleMent loans and grants made by the other inindustrial development and community facilities. Thetask forces wilt also.explore the feasibility of estab-lishing a development training program for LDD,local government, and FmHA field staff.

The partnership that FmHA has eetablished with .

this multistate organization will cdmplement anyindividual FmHA agreements that the agency makee,with the ARC-member States. The FmHA/ARC coop-erative arrangement adds to the ability of both agen-cies to:fulfill their own mandate without relinquishingtheir prerogatives or -responsibilities,

Farmers Home is also pursuing the joint invest-ment strategy approach with Federal deoartmentsand agencies at the Washington level to-ensure thatmaxidium developMental benefits of availableresources aril realized: in addition to joint investmentstratitgles discussed under the White House initi-atives (chapter 2), FmHA and Other agencies areimplementing the following:

An FmHA-DOL agreemen4 for FmHA to Provideconstruction job placement 'opportunities in FmHA-

--financed projects for low-income jobless familybreadwinners being assisted in a $3.8 miliron DOLprogram for.AFDC, WIN; and related program partici-

,pants.

An FmHA-HUD agreement to demonstrateimproved delivery of rural housing and cOmmunitydevelopment assistance. The focus is on delivery of ,

, rural housing assistance toLtlisabvantaged popula-.

tions and delivery of community development aid todistressed communities by channeling Federal pro-gram funds throligh States or usingle funds inconjunction with State government sources.

California, Colorado, Illinois, and West Virginiawere selected from among 34-applicants to participatein the 2-year denonstration, which HUD is fundingfor $3 million in grants and FmHA for $46.2 million in

3 2

loans, The demonstration targets on five geographicareas with a sipble low-income population and ahigh propoition of inadequate community facilitiesand substandard housirig. The tptal eopulation served'is about 580,000.

The demonstration strategy foauses on providingperson-to-person hoOsing outreach to individualhouseholds mild providing intensive community devel-opment technical assistance to local governments. -The cooperating State agencies have marshaled addi-tion4i resources from the Department of Labor, theEnv+ronmental Protection -Agency,.the'EconomicDevelopment Administrationrthe Community Ser-vices Administration, and the Department of Energy.Participating State agencies providing technicalassistance to local governments have also attractedHUD Community Development Block Grant fundsinto communities which had not previously partici-pated in the grant prograni. The technical assistanceto local government's has also emphasized helpingthe governments to use FmHA and HUD resources .in:a complementary fashion with CSA, DOL, and DOE'resourees for'housing repair and neighbortoodimprovement.

An FmHA agreement with the ComnidceDepartment's Office of Minority Business Enterpriie

:(OMBE) to stimulate minority business in rural areaSand small cities. Under the agreement, CommerceDepartment personnel and staff of CommerCe-supported loeal business development organizationswill bp trained in Specifics, of the FmHA business .

and. industrial guaranteed loan'prograT and will pro-vide expert assistance to rural minority peopleinplanning, organizing, and operating sound businessfirms lunded by the FmHA-guiranteed loans. Mcstenterprises resulting from FmHA-OMBE cooperationwill involve black and Spanish-dpeaking applicants insmall communities of the Southeast and Southwest,but advisory assistance from business developrhentorganizations will .be available around the country to .

applicants who meet the requirements of FmHA'sguaranteed, loan program.

A joint FmHA-DOL initiative to train and placefarm laborers in jobs rehabilitating public housingfacilities for farm laborers and rehabilitating andweatherizing farmworker-owned housing. DOL is pro-viding $6 million in CETA training and placementmonies, and FmHA IS prqviding loans for the rehabil-itation work.

An FmHA, DOL, and Community ServicesAdministration agreement to-as6ist rural youththrough a job training/housing rehabilitation pro-

42

grant In this 2-year project, 500 Pural youths arebeing given construction job training by DOL whilerehabilitating homes for low-incOme families underFmHKs Section 502 and 504 housing programs. With$5 millidn in CETA monies, $1 million from CSA, and$5 million in FmHA loans, the project is expected toresult in the rehabilitation of about 1,000 homes.

* An FmHA memorandum of understendingwith the Farmeredit Administration to provide forstretching FmHA funds to reach a larger number offarm families through use of both agencies' funds toassist a family. The memorandum also providesmethods for exchanging appraisal reports, simplify-ing title clearance, led servicing of participants'tams.

An agreement among FmHA, USDA's ExtensionGroup, CM, and DOL to conduct an agricultural en-trepreneurship demonstration project that will create,support, and evaluate agricultural training institutesfor unemployed, rural youth. The project intends to'dimonstrate-that agricultural entrepreneurship is avia6le career objective for unemployed young peoplein rural areas, and that idle farm-resources-lean beus&I to generate employment and income in .

depressed rural areas. The institutes will providetraining in.agriculture and related fields, such asmarketing and supply, educational services, andcareer counseling, to disadvantaged youth, while pro-

,

r

43

-ducing Marketable. cash crops .that' will generaterevenue for the continuous operationef the instk.tutes. Approximately44 million in fiscal year 1980, .

Federal fUnds will.SuPport the projectivin five,.demonstrationeites. .

Service Delivery. and Progritmimprovement Measures

In addition to taking the majorredirection actionsdiscussed previously, FmliA has taken numeroussteps to improve program delivery, cost ckflective-ness,'and responsiveness to current and emerging

*Hal needs. For example1/4under the present Adminis-tration, Fail-IA has: .. ,

Implemented a major restructUring of its field'''systegg to transfer responsibilities for multifamilyhousi7g, water and sewer, and community facilities.prograrris from county-offices to district offices. Thisis allowing county office personnel to devote fullattention to serving Tural families seating housing.or.farTn Idans and to engage in more outreach ta the -

t income people among the eligible population.It is a so cOncentrating expertise at the district levelfor ndling the more multifaceted, complex loans.B&I loans will continua to be approved in tOe Stateoffices but will be processed at the district level.Consideration is being given to having the *programadministered at the district level in the future.

33

Az,

A welder filing one 44 =jobs created by.ñ FinHA &ashen and indieby ben ttnOce establIshminf al a coal car repair componyEttetncnt, S.D.

Joined aDepartmentwIde effort .almed at making,all USDA agenCles' policies and actions consistentwith the Secretary's October 1978 land-use policy.In this regard, the Michigan. State FmkA officeannounced on Februiry 5, 1979, thet FmHA will nblonger make any loans In that Stahl that will un-

' necessarily wart agrichatural, timber, and wetlandsto other use4Mhe agricultural land preservation partof this poliCy is not limited to prime land but ratherapplies to all cropland and potential cropland.. Further,the Michigan office will support "only apprdpriategrowth in appropriate areas consistent with develop-!rent strategies established by Regional PlanningCommissions."

Begun to develop computerized programs andrelated training courses for field staff for betterdetermining the cost effectiveness of various typesof construction propoSals. Initial activities havefo'aused on' coateffective design Of water and sewersystems to reduce overdesign, which wastes Federalfunds and places a continuing burden on borrowers.

To accelerate the processing, of loan and grantapplications, instituted the Rural Community FacilityTracking System (RCF), which will provide improvedinformation on current rural community facility,pro-jects and historical data about apPicants. The RCF

34^

system will prOVide information needed by manage- '

ment at the county; district, State, arid nationallevels for water and waste loans apd gran% corn-munity facility loans, txusiness and industry loam,and IndueVial development grants.

Developed a pilot computer program to assiet n-duetriesin Identifying federally financed industrialsites in rtiral areas which meet.ttleie needs for newplant.locations.Use of the Computerized industrialSite:Referral Service .(CISRS) by industry will improveUSDA's.rural development efforts by assisting FinHAin dealing with the critical problems of creating ruralemployment opportunities. Qualified firms that haveselected sites using CISI3S may apply for FmHAbusiness and industrial loan assiman6e in establish-ing their new facilities on the sites. During a 1-yeartest period, CISRS will provide industrial data onArizona, New Mexico, Nevada, and Utah.

Business and Industrial ProgramTo increase the effectiveness and responsiveness

of the business and industrial loan program, FrrillAhas taken such steps as the following:

Developed with the Amoican Bankers Associa-tion a guaranteed lenders handbook to,provide

4 4

procedures for use of the secondary market forguaranteed loans and them increase bankers' partici-dation in the guaranteed loan program,

Contracted with an appraiial firm to providetraining to FmHA B&I loan officers in industry .

analysis for nursing homes, lodging, textiles, manu-facturing, and other industries of growing impor-tance in the agency's B&I loan'program.

Cpmmunityyrograms

Aipong the many initiatives to improve services incommunity programs (water and sewer prograv and_other community facilities programs) have been thefollowing:

F.MHA.has awarded a major contract for an in-ventory of existing community facHities in rural areasand the minimum acceptable levet:1n each State foreach type of facility!

FmHA has developecka manual for assessingthe financial feasibility of applications submitted forrural hospitals, nursing homes, and,ambulatoryclinics. The manual is designed td be used in thenormal loan review process to increase the capabilityof loan officers in making Judgments on 'the feasi-bility and cst-effectiveness of proposed healthfacilities.

Housing Programs

To improve and expand its housing loan services,FmHA has: sir;

Supported legislation authorizing funds to corn:pensate borrowers for construction defects that arenot realfied or paid for by the contractor. For fiscalyear 1979, $1 million was eppropriated:FmHA hasréquested$5 million for fiscal 1980. This assistancewill be particularly helpful to low-income borrowers.

!! Implemented with the Rural ElectrificationAdministration a rural housing weatherlzation pro-gram to allow cooperatives financed by REA andother public utilities to use Secpon 502 rural housingloan funds to weatherize homes for their customers.The aim is to cut fuel bills for rural families as wellas to held meet national energy conservation objec-

tives.Implemented a new Section 502 guaranteed rural

housing loan program for rural people wittrabove-moderate incomes ($15,800 to $20,000) who can'tobtain credit without a guarantee. This programresponds:fp the inflationary situation and therecognition trilit rural families even with above-

S.

moderate incomes are often denied equal access totheir.own home because of a relative scarcity in ruralareas'of private credit offered without a guarantee.Under a May 1979 revision in Federal biome LoanBank Board regulations, federally insured savingsand loan associations have been given increasedauthority to participate in the program.

To reduce housing costs, approved the Ilse ofadobe brickeln residential construction in New Mex-ico and parts of Texas. The feasibility of using adobein FmHA-financed housing in other areas of thecountry Is being studied.

Nearli completed revised standards for develop-ment of housing sites ip mountainous areas to lowar,the cost of site development and, it is 'hoped, tolower housing construction costs. Basic considera-tion in the rural standards are the health and safetyof the occupants as well as cost lectors.

t>

Energy Initiatives

Farmers Horrie Administration is a strong advocateof alternative heating sources since utility coats areone of the largest financial burdens on low-income.borrowers. In addititin to requiring proven energy-saving devises in agency-financed homes, FmHA hastaken numerous steps to help conserve energy inline with national goals while also helping reducefuel costs for borrowers. For example, the agency

* has:Implemented new thermal performance stan-

dards for all FrpHA housing programs. The Stan-dardsthe mdsi stringent ofi any Federal housirkgagencyrequire increased insulation, more 'efficientwindows and doors, weather stripping, caulking, andother energy conservation measures in all new andexisting homes to be purchased with FmHAassistance. In fiscal 1979, the standards will affectabout 116,000 single-family units and about 5,000rental units. In addition to reducing residents'heating and cooling costs, the use of these stan-dards is expected to result in savings of approx-imately 2 million barrels of oil per year.

Developed a Idisf-cost solar water and spabeheating system being-demonstrated in six sitesaround the country. The units would cost $2,500 to$3,000 and are simple enough to be assembled andinstalled by, people with only basic technical skills.The six deMonstration units will be monitoredthrough the year-long weather cycle in differentregions of the country along with six nearby com-parable houses noffitted with the system, in order to

4535

%

compare energy usage. The system will be madeavailable to FmHA's housing loan borrowers If thedemonstration Is succeisful.

Published final regulations on June 19, 1979,1orImplementing the Energy Impacted Area Devi lop-ment Assistance Program authorized under Section801 of the Power Plant and Industrial Fuel Use Act of1978. Under Miff. pcograrn, which went into effectupon publication-41 the final regulations, governors -of States designate areas impacted by increasedcoal and uranium development activities as "energyimpact areas" In aceordance with FmHA criteria.After this designation, and approval by the Depart-Ment of Energy, FmHA will make grants to States,local governments, and councils of governments forgrowth management and housing planning ahd forsite development and acquisition for housing, publicfacilities, and public services.

Under the program, Fm-HA State directors will usethe convening authority of Section 603 of the RuralDevelopment Act to bring together other Federaland State agencies to direct additional impactassistance to the designated areas. FmHA Statedirectors will also be encouraged to use other FmHAprograms in the designated areas, consistent withthe State investment strategy for energy impactedareas that each State is required to develop to be

38

.

g

elliOble for Section 801 site development and ac-quIsition asaistance.

A total of $20 million has been appropriated forfisca11979 program.activities. The law authorizes$120 million for fiscal 1980i appropriation action ispending.

Among additional FmHA energy initiatives, theagency has:

Trained one architect or engineer in each Stateoffice In solar energy applicatlen:The 44-hourcoursewhose graduates are designated as solarenergy expertsprovided knowledge and skillsneeded to assess the design and installation of solarenergy syhtems, primarily in housing.

Outlined procedures for-the field staff regardinguse or wood as a source of energy where it Isavailable to housing loan borrowers. The-guidelinesurge the use of wood-burning stoves and furnaces,rather than fireplaces.

Developed the design criteria for'anaeróbicdigesters of several sizes to be used by farmers inconverting their animal waste to methane gas as analternate,energy source. After extraction of themethane, the residue has the same value as a fer.tilizer as the waste that has not undergone digestion.Installation and use of a digester will also eliminatethe pollution problems inherent in the undigeited

waste on dairy and hog operations. FmHA hasengaged as a consultant the world-recognized expertin bioconversion to assist in the design and con-struction of digestett. Agency farm operation, farmownership, or soil and water loans can be-used tofinace construction and operation of a digester onfamily size farms.

betermined that constructien, engineering, andoperating costa for gasohol plants are eligible pur-poses for agency'loans to family farmers or theircooperatives. The focus will be on small plants usingagricultural waste and out-of-condition grain as themajor source of the gasohol. Small farms generallyfind it easier to obtain reliable supplies of these twosources and can also ufie the residue (mash) forfeeding locally, eliminating the added cost of dryingout the residue as would be required if thellisiduewere to be shipped for feeding outside the area.Farm loans will be used to assist family farmers, andbusiness and industry loans will be extended tofarmer cooperatives.

Begun investigations into making nese and ,

Industry loans for small bore wells capturemethanegas coal beds for use locally as an in-dustrial energy sou'rce. In'contrast to the presentCotrimon process of burning off the methane gas, thecapturing process would not only meet safety needsbut would rem ye the gas In a nonpolluting way aft-well as allow used rather than wasted. Theloans would be a i le In cases where the coal bedland is owned.by effete and medium sized farmers orother local oeliplei..

Family Farm Programs

Through legislation strongly supported by this Ad-ministration, FmHA farm programs were recast in1978 to be more responsive to current needs and tostrengthen assistance to preserve the family farm.

In addition to authorizing a $4 billion econernic ---emergency loan program and a special low-Interestloan program for limited-resource farmers, theAgricultural Credit Act of 1978:

Opened up nonemergency farm loan programsto cooperatives, partnerships, and corporationsoperatin§ family farmsa change expected to bringabout 60,000 more farms Into eligibility for FmHAloans.

Raised the individuel,size of loan iimilts for farmownership and operating loans and soil and waterand recreation loans.

1?

Authorized FniHA to consolidate or reschedulepayments 9n farti operating loans for up to 7 years,when the farmer is unable to meet the present terms.-

gxpanded eligible purposes for soli and waterloans to include measures necessary to meetFederal, State, or local requireme IlutIonabatement.

Changed farm real estate insured loan tweetrates to a rate based on cbst of money to theGovernment. This change elithinates the inters tsubsidy FmHA had beeq paying.,

Provided 'for the interest rate on guarantfarm loans to be negotiated between the 1 der anthe borrower,.making participation in the programmore attractivejto commercral lenders. Gwentloans have less Impact on the Federal budget thainsured loans, and they also serve as a catalysttransferring commercial loan funds from areas w thplentiful loan funds to rural areas where they arless evailable through the secondary mer)cet sal s ofsuch loaris. . ,02

In additiOn, it should be noted that thri appr pria-tion for farm ownership loans wag; increased f rfiscal 1979 to $800 Million, up from $500 mill n ayear earlier.

Among numerous other steps taken to im rovefarm services, FmHA has:

Stfengthened'and broadened several emoandaof understanding betweee the Farm Cred Ad-'ministration! SBA, and FmHA to improve silvery ofcredit to farmers and ranchers, avoid pea rammaticduplication, arid reduce costs to appli ts.

Eliminated the long, time-consumi g designa-tion and shortened the process under hichemergency natural disaster loans are de aYailable.Under the new procedures, FmHA ca be processingapplications within hours after the d saster insteadof from 1 to 3 months, as was the c se befoca. Theagency has also established a cadr of amergencyloan team leaders for dispatch to reas With largenumbers of emergency loan appli ations,.a step thathas greatly speedel,up processi g of loans and .

restoring cash flora- to firming omtnunities af-fected by etnergencies.

Developed training and information programsand cooperative agreements that will increase par-,ticipation of rural banks and other lenders inguaranteed emergency loan pliegrams. Two overairgoals are to help reverse the drain and transition offunds from rural areas to suburban and metropolitanareas with more attractive interest rates, and to cutdown on direct costs to the Government by em-

3 7

tit

" :veetessisataimilia,f

38

pbasizing guaranteed loans instead of insured loan's:Stepped up efforts to find ways to economically

*vide needed management assistance to farm bor.rowers through a demonstration project wIthUSINEExtension Group and-UniversitY of Minnesota Exten-sion to teet.the educational effectivenesse of coM-puterized financial analysis prepedures used, by P

FinHkin -supervising farm borrowers.Published fn"March 1979 regulations to Clarify

and sirriplify the 0Ocess for obtaining andservicingguaraMeed farmer piOgrem loans. The regulations in-clude proVisions for cd,rtgeplidating, rescheduling, re-amortizitql.and deferrinOstyments, and eliminatetv

oriduation raquiretnent fbf guaranteed loans.

Area'Development Aaalistaixta Planning'Grant Program

Farmers Home is using the Area DeveldiVentMsistance Planning Grant Program' as a tOOlite, ,

carry out its policy of targeting resources to tlia4clorand encoaraging, other development institution";do the same. The'grants also support FmHA'S obrettl..s.\Me of furthering.a coordinated approach to ruraldevelopment.

Congress approved $5 million for these planning\grants in fiscal year 1978 and $5 million in fiscal1979. The objective of the planning grant prograrrristo contribute to the development of comprehendiveplanning for rural developmapt; especially as suchplanning afföcts the disadvabtaged. Specifically; allplanning grants are to have an immediate relation-ship and diced benefit to the unemployed, theunderernpi4ed, those with low family incomes, andminorities.

In addition to providing for the development of acomprehensive planning prOcess for rural areas,-thegrants are also used to:

Enable rural iireas which already have plansitorevise them andlor fill crFtical gaps'when this is (needed to ensure an integrated, usable pagliage; and

. Support the development of an aspect oraipects of a comprehensive planning proéess, pro-vided this will make it possible to put the plan intoaction. The action should be consistent with othercommunity plans.

Some 145 grants were approved for the fiscal year

'Authorlzeti try SectIon 111 ("Rural Development Planreng Qrants') of theRural Developthent Act of 1972

18

". .

ft

1978 program..The thrust of each planning grant is toassist Farmers Home Administration with targetingof resources and to improve rural development coor-dination among State and local governments,regional planning organizations, private and nonprofitdevelopment groups, and Federal agencies. Each

"grantee vitilrblso develop an assessment of the needfor Farmer's Home Administration programs in theproject area. ExpeCted results include the following:

1. More outreach to target populations and in-creased participation by these groups in FmHAprograms.

2. Closer working relationships and improvedcoordination with'other development groups,local units of government, and agencies.

3. Development and implementation of State,substate, anlocal strategies for major prob-lems incluqing health, energy, aging, transporta-tion, water and waste, manpower, and economicdevelopment.

For fiscal 1978, ADAP grants ranged from a low of$3,700 to a high of $146,730for a joint grant to threesubstate districts. The following is a list of fundedprojects by applicant categories:

States 13 $ 590,770Substate Districts ' 91 3,255;580

Counties 18 555,590

Cities and Towns 12 203,990

Indian Tribes 8 254,200

Other 3 139,870

I 145 $5,000,0007

II% 91 grants to substate districts include grants t6 iwo groups of substatatrIcts. The true totel of Individual substate districts is 06.

ne county applied for assistance in conjunction with a substate district.true' total of counties receiving funding is 19

All planning activities being funded include thedevelopment of-comprehensive plans wilt; emphasison guides-for action, 4\0-tuding goals, objectives, andpriorities. A number 0- projects_are concerned witheconomic developmerft 'or the provision of housing,community facilities, dhd/ar other governmental ser-

111

vices. In other cases, emphasis isabeing placed ondeveloping local leadership, improving coordination,and stimulating involvement of citizens and a widerange of governmental units in the overall ruraldevelopment policymaking process. Oor example:

An eastern State is using its grant funds toprepare a plan to formulate effective rural develop-ment strateglea far tkrgeting reSources to rural areasof the'State, especially distressed rural ceriters andsmall communities. ($50,000)

A southern nonprofit, community-based-organlization Is using its grant funds to develop acompteheñalve plan and rural development strategyto meet the needs of low-income residents in a four-county area. Emphasis will be on housingi economicdevelopment, and health delivery services. ($40,000) "

The Kiowa Tribe of Oklahoma is using its grantto develop a tribal land acquisition plan-to further.economic development opportunities for tribalmembers. ($50,000)

A nonprofit, Community-based organization InTexas is using its grant to develop a servicedeliveryplan-for elderly rural residents in three largelyHispanic counties. Services being focused on in- \clude those related to congregate housing, housingrehabilitation and weatNerization, public transporta-tion, and social and hath care services. ($50,000). A substate planning district in West Virginia isusing its grant funds to prepare a comprehensivehousing rehabilitation plan and -strategy for a six-county area with a critical problem of substandardhousing. Local housing committees have been estab-lished ineach of the six counties to assist thesubstate district in developing a specialized plan,strategy, and delivery system for rehabilitating areipreserving the substandard housing stock In thecounties. ($35,000)

A small county in Texas is developing housingand sewer and water plans for five small corn-niunitiee in the county. Water is a particular problem lak

since drilling a well is difficult because of thecaltthat comes from the Gulf of Mexico. ($41,850)

A small village in Nebraska will use its grant todevelop a comprehensive social serviCes deliveryplan. A survewis being conducted to determine theeffectiveness of current social service assistance,future demand for services, and public attitudestowards various methods of delivering services.($4,000)

During fiscal 1979, the Area DevelopmentAssistance program issemphasizing greater participa-tion by community-based organizations.

19

39

5. OthiUSDA initiatives

,)

introduction

As provided by Section 603(a) of the Rural Develop-.ment Act of 1972, rural development Is one of theDepartment's major statutory missions. Ruraldevelopment .13 thus a responsibility of all USDAagencies, within the 4ramework of their legislatedresponsibilities. Thi3 mandate has been reinforcedmost recently.by Secretary's Memorandum No. 1979,"Statement on Rirral Development," which formallysets forth.national rural development goals fOr the'policy guidanoe of USDA agencies and directS eachagency to give aggreasivp leadership and assistancein meeting the goals.

The statement also:Zirects each USDA ageky that conductepro-

grams related to rural development to helpstrengthen the ability of local and State agencies to_

be more responsive to the needs and desires of ruralpildp le. .

Establishes a system for determining at thebeginning of each year how the programs, services,and technical assistance of each agency will con-tribute to national rural development goals. -

Establishes a system of reporting at the end ofeach fiscal year the contribution of each agency'sprograWs, Services, and technical assistance to the.rural developrhent goals.

Establishes d working group to study a wide-range of issues pertinent to rural developmentpolicies and programs and provides a forum fodiscussing these issues.

Establishes a USDA Rural Development Coor-dinating Committee,under the chairmanship of theAssistant Secretary for Rural Development, to coor-dinate rural development policy and activities Withinthe Department and assist State fUral developmentcommittees with their rOral development respon-sibilities.

Direèts the Assistant Secretary for RuralDevelopment to promote cooperation among Federalodepa ments and agengies and, involve them in for-mulat g and implementing policies, strategies, andprogra s. ,

Establishes a State rural development coor-dinating committee in each State to help target ruraldevelopment efforts.

The,following is a brief sampling of depart-mentwide initiatives and actions of USDA agenciesOther than FmHA that demonstrate USDA's em-

P9 L-Io 6lar\k_ page_

phasis or1 rural development alder this Adm nistra-- tion.

Intraderiortmentai inirativesIn matters ranging from land use and rural

transportation tOsmall farms and energy, many ofthe rural development-related actions of USDA sinceJanuary 1977 have cut across agency jurisdictionsand involved departmentwide efforts. The followingare examPles of these initiatives.

Early in the-Administration; USDA convened fiveregional irforkshops with USDA State office headsand top staff to discuss USDA's rural developmentrelated programs, responsibilities, and proposedpolicy statements on issues of importance toUSDA's rural develbpmeni mandate. Attended bymore than'600 participants, the workshops helpedframe major USDA policy statementa on ruraldevelopment, land use, and energy as well as pro-cedures that USDA agencies at the State-level can.use to implement these policies.

- The SecretaN has initiated a national -Agricultural Structures Dialogue on the structure ofthe farm-sector of the future. Five structural dimen-sions of agricultureand the tradeoffs involved invarious options within eachwill be examined. Theoverall purpose is teiprovide the foundation for deci-sionmaking td achieve a future structure that willbest meet national needs as well as the needs ofagriCulture, rural America, and the consuming public:

The five structural dimensions being examined are:-number and site of farms; ownership and font of thelegal organization of farms and farmiand;operation3,including cropping systems, specialization, and useof technology; characterisfics of the people in farm-ing; and barriers to entaand exit. An important partof the dialogue will foa4A.-on factors-that may affect.structures, such as characteristics of the industriesthat buy or sell to farmers; general economicdevelopments; and tax laws, farrn programs, andother public policies.

The diaSogue wilr build on USDA research, theresearch and views of private citizens and groups,and university and foundation supported re-searchall of which will be shared with interestedparticipants. One means by which information will beobtained from the public will be a series of 10 publichearings across the country led by SeCretaryBergiand.

The specific obje iv of the dialogue ar .

4 t

etas to the Midwest Small Fenn* Conference reprisenteda wide cross section of agesend farm enterprise, from Plains

. grain farms to organic lams, but weresunited krtheir commitmentfie the ;mail family farm.

Greater general awervess -of conditions andtrends in the structurtlof U.S. agriculture.

2. Better understanding of the conditions that W-fact structure.-

3. Clear definitions.of the issues and tradeoffsthat-are required to establish or Modify policiesthat affect structure.

4. Specific proposals for the 1981 Farm Bill.

5. Proposals for)ncorporatiort in tax bills, en-vironmental and energy bills, and many otherpieces of legislation.

6. Development of information for USDAanalysisof a variety of bills and recontonendations thatmay indirectly affect struCture.'

7. Identification of necessary changes in USDA ad-ministrative policies. b

In 1978, USDA, the Community'Services Ad-ministration, and ACTION sponsored five small farm.conferences around the cbuntryl6proylde theNa-tion's small farmers with an opportunity to discissues and advocate actions of priority concern to .

them and the institutions they represent. The pro-ceedings of the workshops provided -tbe basis for thfoliowing actions:

Isstlance of a USDA policy on Assistance toSmall Farm Operators, stated through a

. , .

42

I. \4%.

W 1 SchaNer aeltkDepuly Orrector of tiSall'eSEA-Extemion,and NO Movie*, &shame Secretary otAgriculture for RuralDevelopment cticaskig problems of the smeN farmer et thehbirtheast Sint* Fonts Conference, Pokutd Sprim, Ma

Smell lean operetta at the Midwestern Sine Farms Conferenceidentify problems and suggest actions as part of the grass rootsinput m these "isten and learn" conference:1s aimed at Feder&decisionmakers.

Secretary's Memorandum. The memorandUrn.states that it .is the current policy of USDA to en-courage,preserve, and strengthen the small farmas'a continuing component of agriculture in theUnited State:tit isialso USDA polley-to provideessistancelhat win enable small farmers and their '.

families to develop human skills for both farm andnonfarm emploYment to improve their quality aflife. A priority will be to encourage small farmopeitors and their families to participate In USDA,prograps. The jnemorandum alto established aUSDA policy4evel group, chaired-by the AssistantSecretary for Rural Development, to provide policyguidance to USDA small farm activities..

ifAppOintment of a USDA small farm coor-

dinator, to work with the small farm policy group..USDA agenciei will report to this person theresults of an annual review of their programs withrecommendations on changes needed to Improveattention and services to small farm faMilles.

EstabRshment of permanent small-farm sub-committees of the State rural developmentcOm-mittees, to develop State small farm action plans.

Initiation by USDA of joint-agency pilot pro-jects to test the effectiveness of a coOperative ap-proach by seven USDA agencies, CSA, and AC-TION to help small-acreage farmers increase theirproduction and income. IDe 16 projects Include a

water conservation project in Nevada to assist 22Indian families; a sheep project in New Mexicoairned.at low-inCome Hispanic farm families; afeeder pig project with 15.small blaqk farmers InMissouri; and a cooperative to help farmers in fourMaine counties market and store vegetables.

"Sponsdrship of the February 1979 IndianAgriculture Conference by USDA, ACTION, CSA,and the Bureau of Indian .Affairs. The conferenceprovided Indiana and Alaskan natives an opportu-snity to identify problemethat are unique to Indiansengaged in agriculture and to present these togovernment decisionmakers who manage pro-grams that can assist them. It also assisted themin 1 eking better advantage of USDA loan, cosi-sharing, and educational programs, as well as .other Federal programs.

In a major step to provide greater assistance insolving'agricuitural and rural development transporta-tion problems, the Secretary has established a con-solidated USDA.Office of Transportation under theAssistant ,Secretary for Marketing and TransportationServices. The' new office serves as a focal point forall USDA transportation mattecs, inquding thedevelopment of agricultural and rural developmenttransportation policies and strategies, With the ruraldevelopment policies focusing on passenger transit:The office will also administer demonstration prdj-ects USDA is funding for the design, development,and d riionstration of procedures to assist Statetransp ation planning agencies in identifyirig ruraltranspo ation needs.

,

.

The new USDA Office of Transportation, alongwith DOT, has been providing staff support for.the ;16Imer2ber Ryral Transportation Advisory Task Forceestablished by.Public Law 95-580, signed by Presi-dent Carter November 2,.1978. Undehhe chairman-ship of the 'Secretaries of Agriculture and Transporta-tion, the task force is to (1).assess the transportneeds of agriculture, (2) determine the adequacy of .

the current trmaportation network in meeting thoseneeds, and.(3) III k e recommendatibns to Congressfor a national agridultural transportation policy. InJune 1979, the task force published a preliminaryreport as an invitation to the public to participate inhearings held in July and August in 12 cities aroundthe Nation. In the preliminary report, the task forcediscussed a number of issues, such as rail car avail-ability, rail branchline abandonments,'and motor car-rier deregulation, and listed sdme policy alternatives ,

for each lasue. The task force will consider the infor-mation obtained at the public hearings on these andmany other Issues when It formuiates policy pro-posals for a final report due to be published inJanuary 1980.

The Secretary has isaued a USDA policy on landuse, stated through a Secretary's Memorandumissued in October 1978. The memorandum directsUSDA land use programs to serve the following.threepurposes:

Provision of assistance to local and Stategovernment and individual landholders in definingand meeting their growth, development, and en-vironmental needs.,

Protection of the natural environment.

Assurance of adequate supplies of high qualityfood and fiber for the Nation.

Specifically, USDA agencies Will:

Continue to recognize and respect the rightsand responsibilities of landholders in makIngprivate land use decisions, and the rights andresponsibilities of State and local government indeveloping public policies regarding non-Federalland use.

Generate and disseminate information and pro-vede organizaticinal, leadership, planning, andted-linical assistance to local or State officials,concerned groups, individual land owners, and thegeneral public in all aspects of land use indudirfigalternatives to the conversion of importantFarmlands and Forestiand, Prime Pfilngelands, andWetiande

Advocate the retention of Important Farmlandsand Forestland, Prime Rangelend, Wetlands, orother lands designated by State or local govern-ments.

Advocate actions-that reduce the risk of floodloss, minimize impacts of floods on human safety,health, and welfare, and restore and preserve thenatural and beneficial functions and Values offlood plains.

r'

' Advocate and assist in the reclamation of aban-doned surface-mined lands and in the planning forthe extraction of coal and other nenrenewabieresources in ways that will facilitate later restore-non of the land to its prior productivity.

Advocate the orotectian of threatened and en-dangered animal hod plant species and their

43

habitats, designated arChaeologiCal, historic, andcultural sites, ancfAiesignated ecosystems.

Advocate the conservation of natural and man-made scenic resources, irriprove the technicalability of USDA spenties to identify and evaluatescenic respurces, and assure that these agenciesprotect arZsenhanckthe visual quality of the land-scape.

in Implementing the policy, USDA agencies aredirected to' review programs or actions and related'administrative rules, reputations, bulletins, and prac-tices and within 1 year to make changes necessaryto bring agency programs oractions into corn-

. pHance. A USDA Land Use Committee is providingleaderepip for implementing the policy.

Additional major interagency initiatives of USDAundertaken tcrstrengthen the Department's supportand performance in rural development include thefollowing:

The Secretary has established a NativeAmerican Task Force to Improve the effectiveness ofUSDA's programs as they apply to Native Americans.The Assistant Secretary for Rural development ischairman, and all USOA agencies have been directed40 cooperate with the task force.

The Assistint Secretary for Rural Developmenthas established a task force on energy conservation.to develop.a USDA energy conservation Initiative.The task force hat prepared And distributed facksheets on guidelines, standards; and other pertinentlpfognation.on home weatherization and energy con-,servation in the rural home. The task force is also en-couraging and providing guidelines to State 'ruraldevelopment-tommittees In their efforts to gevelopstritegies for helping. conierve energy in theeruralhome.

The Secretary has established an Office-ofEnergy to provide leadership and focus to USDAenergy activities. Among its responsibilities Is thedevelopment of energy and energy-realted policiesand strategies for the Department, to maintain ahealthy and viable agricultural sector and progressiverural,America. An Energy 'coordinating Committee,whose membership includes the Department's Dep-uty Assistant Secretaries, has also been established.

The Assistant Secretary for Rural Developmenthas established a Rural Development Research Com-mittee which is studying the ongoing rural develop-

44

7

4, 4'or Ja

417 air:Inflated solar collector used to pnisrlde hot ak for dryinggrain.

.1

ment research effotts of USDA and exploring waysthat these can be made mdreresponsive to ruraldevelopment needs and USDA's mission.

'Agency initiativesWithin the context of ther variOus specific mis-

sions:psi:1A agencies have undertaken a wide rangeof new initiatives to assist rural communities andpeople, particularlythose Most in need. Their ac-tivities range from data collection and research todirect services. The following is a brief sampling ofthese initiativei. I g

Policy ReseaVRural devel6pment means the expansitan 4 1,

economic opportunities, especially for theunemployed and underemployed, plus incr,easinoeo-

'. cess to needed social services and-basic publicfaCilities.Research to sapport development Ofpolicies formeetingthese goals Is one_of the

\ priorities of the econorniCs, Statistics, andCooperativesServicee's Eeonomic Development Divi-sion (EDD). EDD has recently:

Developed an improved method for constructingcounty-level indicators of-social and'economic well-being, to describe and conipare conditions in variodslocations and identify areas of substantial disadvan-tage. This information is potentially'useful forassessing \and better directing the geographic

.distribution of Federal program assistance designedto alleviate rural deprivation. ,

Demonstratecj that factors sudh as the level ofself-employment and worker discouragement havecontributed to an under-representation of measuredunemployment in nonmetropolitan areas relative to'.metropolitan areas, potentially leading to under-funding.of human resource and econon?icNievelop-ment program allocations to nonmetropolitan areason the-t5asis of systematically biased unemployment.statistics. This information is potentially daeful forassessing fund allocation systems arid redirectingthe distribution of program funds to areas of need,

Services to the DisadvantagedThciFood and Nutrition Service has lasued

regulations implementing the Food Stamp Act of1977 which simpli/y program operation's and areespecially beneficial to rural people, includingmigrant farmworkers and reservation Indians. In fillct,preliminary figures indicate that thp new regulations

z

have greatly increased participation in the Food ,'-

Stamp Program in ;oral areas. Participatiori in the,most aparsely populated areas increased 33 percentin the first 2 ltontlia the new regulations were in ef-fect, compared with an increase of 7 percent in ur-

'Dan areas.

The appllcation process hps Aeenperrnittiftr applicaotsio cafr'br Write the food ,

stamp 'office and receivean application forrn in the'maif0Application fortns-E, an. be mailed to the of-fice, and members of households with tratisportiktioh dlfticuities.cañbê inteeviewed at home or byPhone or send'an authorized representative to the

.(office for the interview. Thai's previa-Ions benefitrural houspholds whose members cannot easily.travel to a food stamp office.

-Food stamp 'Offices serving a significantnumber of low-inCome people w,hti do nOt speakEnglish, such 4s numeroui mlograrit farmworkefe,are required_t8 proVide bilindaf staff andmateriats. .

The eligibliitysstandards recognizelhd sbecialneeds of farmers and migrant farmWorkers by ex- -

empting income-produc.ing vehicles (such as trac-tors) and vehicles necessary for long distance ftravel to work (such as itigrant vans) from thqon assets. The cost of produdingSelf-emploAentincome,,such as the' eZpenses of operatrng a farm,

. are deducted from incOme in determining -eligibil-ity and benefits. '

The elimination of the purchase requirementhas opened up the program to people without verymuch cash Op hand.

The mailing of fo;d stamps direcily to par-ticapants has been greatly facilitated, a changewhich will help rural people who live greatdistances frorn,food stamp issuance offices_

Families whose i qorne is'from self-employment or firm mOloyment can be certifiedonce to receive food tamps foLup to 12 months.

,..

-7-- Proposed regulati ns published Juli'13, 1979,will increase Ire accessibilit of food stamp of-fices to low-income people, especially Those who,live in sparsely populated rural areas.

,

's- Regulations soon td be published In final formWill require special efforts to inform the rural p oor

' about the availability and benefits of the, foodstamp program.

"

e

414

USDA's commodity distribution program hasbeen revised td better.serve needy families on 4ndian..reservations. Changes have been made in thenumber.and 'types of comModittes distribUted in 's

order to improve stufritional contint.,Also, reserVa-Itons now ha') the option of participating-in a food'Stamp program, a commodity distribution program,or botti, USDA wiliAlso provide Vcreased funding forthe adminjstratlke costs of these prograMs on Indian,reservalions.

Tharp Program (SupplaKental Feeding Pro-gram for Women,. Infants and Children) operated bythe Foodarib Nutrition VeMce.to provide sup-plemental foods to pregnant women, infants, andypting children, certified as being:at nutritional risk,has underway a major demonstration pioject de-sIgned,t0 reach eligible women and children who arernigralt farrnworkers. As Sart of this project, spacial

-emphAisis has been placed on funding new WIC-pro-,,jects in many 'rural areas which previously had no, ao-ceas tothe progfam.

The Pood.and Nytrition,Service iSconducling aspecial -publicity prOgram aimed specifically at ruralareas to encourage more sponsors 'of Summer FoodProgram projects for rural children from low-incomefamilies. The program is operated through nonprofit-agencies who qualify as.sponsors. Also to encouragegreater participation by potential sponsors, the

I.

6

,

,

agency flas developed a new reimbursement struc-ture that willmake sponiors with higher thanaverage administhitive coils eligible to receive,

z

- higher reimbursements..

The Cooperative Development Division of theEconomics, StatistiOs, and Cooperatives Service hasestablished a field office at Salinas, Calif., to providetechnical assistance to four-newly organized kproduction-marketinkcoopiratives. The Membershipof the cooperatives IsNArIsed of Mexican-Americans, many of whomere former agriculturalmigrant workers. Provision of intensive on-silelechnical assistance will enable the cooperatives tospeed Op the development process so that they canmore quickly become viable economic enterprises.The cooperatives produce, pack, and marketvegetables and strawberries.

The ooperative Extension Service in Illinoishas joine4 with the Illinois Department of LocalGovernment Affairs in a demonstration project aimedat delivering HUD and FmHA housing and communi-.ty development reSources to hard-to-reach rural com-munities-and rural people. Utilizing balance-of-StateCETA personnel, SEA-Extension is taking a !bad rote

.,in bousing assistance outreach and related educe-tional ard referrel,activities aimed at assisting low-and moderate-income rural households.

The Forest Service, through the Rural Commu-nity Fire Protection Program, has provided more than3,000 rural communities, including 30 on ifidianreservations, with assistance in organizigg, equip-ping,-and training rural fire departments. Thisassistance ie directed toward rural communities whoparsirntlY have Ro fire protection, or fail to meetunderwriter's standards for minimum acceptabre pro-tection.

Under the Direct Marketing Act of 1976,Cooperative Extension Services and State depart-ments of agriculture have been allocated $2 millionfor 21 pilot projects providing technical services,education, and information in support of communityfarmers markets, roadside markets and stands, and"pick-Our-own" operations. A survey of customerSat two markets in the Alabama pilot project areaverified thwattraction of fresh produce. Farmers inthe area have indicated interest in a program to_study and wepand direct marketing, which can in-crease the earnings of small farmers and retainmoney within the local economy while loweringprices paid by consumers.

Assisting Rural Institutions, /Me Secretary is directing agencies of the depart-ment tO help strengthen the ability Of local and Statepublic and private agencies to be more responsive tothe needs and desires of rural people. Effective Stateand local governments are recognized as Criticalpreconditions for a strong nationwide rural develop-ment effort.-Alalb-critical is the systematic volvment of relevant oublic and consu'rner intergroups 4nd the private sectors in the fOrmula on andimplementation of rural policies and strategies at thelocal, State, and national levels:

FmHA's Area Development Assistance Planning .

grants constitute the Department's primary financialaid,for assisting rural institutions in rural develop-ment policy olanning and management at the Stateand substate levels.A number ,rA other USDA agen-cies play equally key Riles in this area through provi-sion of a wide range of other forms of assistance. Inline with the Secretary's coMmitment to ruraldevelopment, they have strengthened and renewed..their priorities in regard to working with grassrootsrural leadership and bolstering 'rural institutions. Forexample:

The Extension arm of the Science and EducationAdministration is placing increased progiam priOrityon the needs of local government Officials in coping

56

effectively with increased demands tor public ser-vices in a period of declining publit revepue sources.A major Extension goal is to strengthen local unitsof government and their planning capabilities. Aspecial, thrust is the training of rural leadera and theenhancement of citizen particip.ation in the development process.

To promote this airn;-

The Community Resource DevelopMent andPublic Affairs Subcommittee of the ExtensionCommittee omOrganization and Polley has createdh Task Force on Local government to tielp focusattention and resources on the needs of local of-ficials..

SEAExtension is stressipg the ne d for in-creased educational programing for rural localgovernment officials and has emplbyd a localgovernment specialist to give full-time nationalleadership to the development of edgcational pro-grams and materiaft for use by Exterion inassisting local officials.

SEA-Extension personnel have joiriedforces_with research personnel within the Department todevelopcand field test a seriesvf handbooks aimedat aiding local officials in decisiOnmaking concern-.

ing assessment of the need, determination of thecommunity's ability to pay, and estimation Ofoverall costs and benefitS of housing development,public health facilities and services, fire protec-tidn, and Public safety senhes in the Great PlainSregion. Additional projects will be conducted totest the application of the methodology to 'otherregions. One exaMple of this effort is provided bya project in western Oklahoma, Where a team ofresearch and extension workers under Economics,Statistics, and CPoperatives 'Service leadershipassisted a county governing board to analyze alter-native solutionS to the problem of providing publicambulance service. Not only did this alternativecost and revenue analysis help the particularcounty to develop new ambulance service, it was*so packaged in a-"do-it-yourself" fqrmat andsubsequently used by other local governmentsthroughout the Great Plains,

SEA-Extension has also provided financial sup-port for the deOelopmern of an audiovisual educa-tion package that assists small town officials inidentifying the types of problems they may en-.counter in providing adequate public services andin locating potential sources of assistance kir

47

solving those problems When their communitiessuddenly become enerMr "boom towns." .

In cooperation with State and :local governmentpersonnel. and USDA agencies, the Southern ROralDevelopment Center has designed, tested, anddeveloped a rural development training prograrnwhich can be used to help local citizens and corn-munity leaderS identify and carry out rural develop-

- ment problem solving.The Ruril Electrification Administration has

established access to the Federal Assistance Pro-gram§ Retrieval System and a procedure for respond-ing,Th requests from its borrowers for informationabout Federal resources to assist local communityand economic 'development projects. This initiative IsOarticularly srgnificarit because many REA-financed'electric and telephone organizations provide the ,local leadership, information, and tachnicalassistance that may be required for thvievelopmentof housing, central water and sewer systems, healthfacilities, industrial parks, and'the like.

PSEA-Extension initiated.a request for-a changein interstate Commerce Commission regulationswhich subsequently resUlted in publication of a pro-posed rult to require railroads to futnh notices of"intent to abandon" rail lines to the ropriateState director of the CooPerativ nsion Service.This early warning will allow EXnsion personneltime to work with rural communities in responding tosuch notices. .

Upon request by a consortium*of. five USDAaaencies, State Extension directors have submittedproposals for-transportation-related demonstration.prbjects. The projects will design, develop, and -

demonstrate procedures for rand grant university Ex-tension and research personnel to asslst State -transportation planning agencies and local goverrf-merits concerned with agricultural and rural transpor-

.tation. The projects will include recommendations onusing agrjculturally oriented State and federallyfunded agencies In planning for the delivery oftransportation services in rural areas. Funds havebeen awarded to North Carolina and MinneiOtaCooperdive Extension Services in response to the

'proposals.

Improving Agriculture

The Administration has implemented several majorpOlicy initiatives underscoring its commitment to an'agricultural system based on the family farm. ft has work-ed with the Congress to ensure that new legislation includ-

45

kved authorities to protect family farms from wide fluctua-tions in farm pricesend to ensure that ample operatiniacredit is available to trilintain liquidity when prices at

A principal inidtive is the establishment of a'voluntary commodity supply management prowernconsisting of twp integral partsgrain set-asidesand farmer-owned grain reserveswhich providegreater market stability for producers and consumerswhile assuring producers of a fair return on their in-

,

vestmentg..

Other departures froin the past have been_tofree farmers from,archalc acreage allotments, thusbasing programs on farmers'. actual plantings eachyear and to give balanced treatment to majortom-m4iles based on cost of Production. New direc;tions hive also been taken in disaster assistanceand cost-sharing conservation programs ad-ministered by the.AgricultUral Stabilization and Con-servation Service. These are making a Significantcontribution to strengthening the economy 'of ruralAmerica, its natural resburce base, and the incomelevels of its residents.

To assure adequate on-farm storage capacity:

The loan limit under ASCS's farm storage facilityloan program has been doubled;

:Downpayment requirements havb been halved;

interest rates have been reduced;

The rebi4rment period has been extended;

Previously ineligible structures have been covered;and

Mddification/remodeling of existing structures hasbeen included. ,

.As a result, loan actiVity has been at recordJevelsin the first 9 months of fiscal 1978 alone,loans amounted to about one-third of the total forthe first 29 years Of the;tritgram.

The Foreign Agriculture Service has adopted atwo-pronged strategy for holding and expandirigforeign marketsstrengthening and expanding itsforeign Operations and more sharply focusing itsmarket development activities. Aiming at marketsand commodities with high trade impace it is:

Encouraging increased participation from commodityinterests which have not been actively working to buildforeign demand;

Using credit programs to Wild long-term foreign de--mart;

Assisting technblogy-transfers mutually beneficial toU.S. trade and foreign economic developmprit:'

increasing demand for U.e." bulk commodities byproviding utilization technology, trade, and technical ser-

UsThg selected 'market deveiopment activities to sup-port efforts to reduce or riarnoVe impeeiiments t:o trade;and

Encouraging construction of foreign storage andutilization facilities.

The farmer-held grain reserife program im-plemented by ASCS.will also stimulate expansion ofexport markets by making the United States a moredependable supplier to foreign buyers who are in-

Aterested in continuity of supply.The Office orTransportation and SEA-Extension

are working to assure the existence of an adeNatetransportation system to transport subh commoditiesbound for export.

The Agricultural Marketing Service, under itsFederal-State Marketing Improvement Program, hasgranted $57,300 ta-. assist Alaska In deierminingmarketing systems and facilities for,barley andrapeseed to be produced on 60,000 acres in the-

Delta-Clearwater area. Land preparation investmentsexceeding $10 million,.from other sburces, depend .for their success on development of supporting ser-vices such as farm machinery suppliers, grainstorage and handling services, and transportationfacilities, which neerl to be in place by 1980-81. This .

agricultural development is of special significance to,aparsely.populated arekand it reflecis im-

proved economic prospects for farMers.

Further actions to assist with farm credit and in-come include the following:

In addition to improved credit availability foragriculture under the farm Credit Act of 1978, com-modity and income support operations and disasterassiStance have Irkreased producers' cash flow. Oneimpact has been a financial boost for-rural banks andbusinesses largely dependent Linón the economic,Well-being of their farmer clients.

Although authorized since 1973, target priee ordeficiency payments, amounting to roughly $1.2billion, were first made on 1977 crops*. WhiIeJm-plerrthntrng the 1973 authority, the Administrationworked closely wittvthe Congress in developing new,comprehensive legislation----the Food and Agricul-turai Act of 1977. Payments on 1978,crops reflect thebighbr levels of support enacted in the 1977 Act. Inaddition, the Agricultural Stabilization and Conservertion Service has implemented the new hayingAndgrazing program for,wheat farmers and land diver-sion, payments program for feedgrain and cotton pro-Iducers. pnder the new programs, commodity loan ac-Aivity has been increased substantially:strengtheningfarmers' marketindpositions and offering them in-creased marketing flaxibility.

'The Science and Education Administration'sCooperative Research and Erension units havechanged their program priorities to increase atten-

"tion to small or 'limited resource farmers.

30 States now have research projects designedto benefit smart farmers; and

31 States have Extrnsion and paraprofessionalprograms aimed at transmitting droup organizationand leadership skills, farm production, rpanage-ment, and marketing skills, and information aboutoff-farm employment opportunities. Evaluation oftwo State programs shows that participants tiaveincreased their incomes.

Reducing Energy Costs

Although the new USDA Office of Energy develops

49

and implements energy-related pOlicies-andstrategies and coordinates departmental programs tomeet USDA's energy goals, the agencies of theDepartment continue to play signeticint roles in help-ingliural Americans to cut their energy costs throughcoMervation and adoption of alternative energy

1 systems. The Department has developed an energyconservation program that uses the diversified

- capabilities of its field employees through the'State-- local system of rural development committees, which

are preparing strategies that complerhent the Stateenergy conservation plans required by the Depart-me t of Energy.'---5nergy-related initiatives.by individual USDA hen:cies are varied, reflecting an, open-minded posture -needed to; promote creativity and innovation in deal-ing with increasingly important energy-problems. Ex-amples from agencies other than FmHA include thefollowing:

The Rural Electrification Administration hasestablished a policy that requires its electricCooperative borrowers to have energy conseriationprograms as a Oonditlon for receipt of an REA loam

"As a result, consumers served by electric cooper-atives can ex`pect to receive advice and assistanceon ways to conserve energy and thus cut energycosts.

50

SEA-Extension also has been active in energyconservation edUcation in rural America:;

Through a special project funded by BEA-Extension, Utah Cooperative Extension conductedWorkshops in California and Georgia to directlyassist approximately 100 local officials in for-mulating management strategies for coping with -

t short supplies and high costs of energy. Otherworkshop participants, such as Extertion energyspecialists, staffs from councils of governments,State energy'commlssions, and energy companyrepresentatives/ have subsequently passed alongindirect benefits to other local, governmentof-ficials.

By pursuing a close working relationship withthe Department of Energy in creating an effectiveEnergi Extension Service, first in 10 pilot-testSlates and now in all States, SEA-Extension hasbrought its considerable experience to bear in sup.-WI of energy conservation on a national ,basis.

Extension has addressed conservation needs inthe.region most hea4ily dependent upon importedoil by obtaining Coriiprehensive Employment andTraining Act funding for the Energy ConseniationAnalysli Project in.New England. Under this pro- ,jecitapproximately 5,000 energy audits haveshown:that 40 p.ercent of energy used in auditedhomes could be eliminated with proper retrofittingof insulation, weatherstripping, storm windows,and the like.

The Extension Committee On Orgariization andPolicy has created a special task force focused orenergy education, and the Science and EducationAdministration haS'oompiled a special report onenergy extension-Programs to promote knowledgesharing in support of energy conservation. Exten-sioO's energy education efforts are targeted tosewritn audiences: teachers, business and industry,builders, architecti and developers, agriculture,local governments and regional agencies, and thegeneral public.

Departmental agencies also deal with basic and'applied research aspects of solutions to energy prob-lems, often providing new information to be trans-mitted through Extension education. For example,the Forest Service has proposed new research in-itiatives:-

To develop more energy efficient homes;

To design shelter belts and greenways to help

59

reduce energy.consumpVon:and improve esthetics;ehd

To develdp new useefor hardwoods, millresidues, and whole trees for energy, as well as forpulp and chemicals.

Protecting and lmprovin9 the Rural Environment'As was discussed earlier in this chapter, in the

sintion on theDepartment's land use policy, it isUSDA policy to protect the quality of the natural en-vironment while contriti.ffig to Improved social and

'economic weli-being in rural areas. The Departmenthas an obvious statutory interest In preserving farmand forest lands, in linewith its specific missions.Moreover, USDA administers numerous programs, in-cluding development programs, and makes manydecisions that affect.the natural environment, Irv-ciuding farm lands. Thus, a major priority for allUSDA agencies is to bring themselves into corn-pliance with the October 1978 land use policy diFec-tive.,In addition to this current work, other importantefforts of varlovs USDA agencies related tb protec-tion of the environment include the following:

The Soil Conservation Service has publishedfinal regulations and the Environmental Impact State-ment for the new Rural Clean Water lipoigram calledfor in the Clean Water Act of 1977. Funding has beenrequested in the President's budget to implementthe program in fiscal 1980, and the appropriation ispending in Congress. The program is designed toprovide cost-sharing incentives and technicalassistanceip rural land-users to install conservationsystems to reduce nonpoint pbilution fromagricultural activities in target areas nominated byState Governors and approved by the Department,with Environmental Protection Agency concurrence.

. SCg is also administering provisions of the Soiland Water Resources Conservation Act of 1977, in-cluding requirements for pbasic natural resources in pdevelopment of a 5-year str

iodic assessments ofate ownership and

elby for dealing with soiland water conservation problems.

In addition, SCS is administering Section 406 ofthe Surface Mining Control and Reclamation Act of1977. This "Rural Abandoned Mine Program" pro-vides technial and cost-sharing assistance to 4'601

landusers fOr the reclamation, conservation, and'development of abandoned coat mine areas.

The Forest Servics is developing guidelines forimplementing the Cooperalive For'estry AssistanceAct of 1978, which provides broadened authority for

o

efforts to help improve rura( soil and water condi-tionsA major provision enables the Forest Serviceto make consolidated payments to States for im-plementitng rural forestry programs based on Stateforestry program plans, The provisions allow Stateand local agencies to undertake cost sharing proj-ects which can provide a boost to rural landownersin their conservation efforts..

Inclusion.of the Agricultural Conservation Pro-gram in the President's budget and a new focus ondetermining cost-sharing percentages (up to 90 per-cent Federal) by established priorities for conserva-tion and soNtion of pollution problems underscorethe Administration's commitment to conservation ofvital natural resources by'the most cost-effectivemeans. The ACP IS under close review to ensure that

. it achieves these goals, and ASCS has encquragedits State and county committees to consult other

- agencies and interested groups in identifying criticalcon'servaPon,problems and solutions for cost:sharingassisteinde:

USDA agencies (Soil Conservation Service;Agricultural Stabilization and Conservation Service;Science and Education Administration; Economics,statistics,'end Cooperatives Service; Forest Service;and Rymer Home Administration) have begun a jointModel implementation Program in seven States withthe Environmental Protection Agency to show how a'coordinated prbgram of consgtvation systems canimprove wafer quality in rural Imes. The soil and'water cohs'ervation work needed in Ale selected MI13,priiject areas began In 1978 and most are expectedto be comCiate in 1980. As part of theinteragencypcogram; ASCS earmarked $1.5 million of ACP fundsto help control pollution of streams from sedimentand chemical run-off frdm agricultural lands.

ASCS also has approved $1.3 million for 10speciaj rural development and conservation projects

P aimed at hetping small farmers with gross incoMes.of less than $20,000 to solve consenration and mdterquality problems. The projects selected, are intendedto demonstrate the types of programs and effortsthat: (1) can help improve tfie economic position ofsmall farmers while at the same timeaccomplishingconservation and improvement of the rural environ-ment and (2) can be accomplished throughcooperative efforts of farmerst USDA agencies, andother interested organizations at the local level. Theprogram will also be used to study the potential ofthe ACP to contribute to the Department's increasedemphasis on rurardevelooment.

51

6. Other Federal Agency Initiatives

President Carter has voiced his determination thatthe Federal Government will engage in a full partner-ship with other levels of g6Vernment and 'the privatesector in meeting the needs of small town and ruralAmerica. A wide range of Federal activities to meetthis objective have been undertaken as part of theWhite House Rural In4atives discussed In chapter 3.In addition, a member of interagency efforls withFarmers Ho Me have been reported on in chapter 4.The folloWing pages present a sampling of adclitionalinitiatives of Federal agencies and departments,other than USDA, aimed at improving governmentservices to rural,communities and increasing respon-siveness to critical rural needs. kl

First are those initiatives that focus on improvingthe delivery of services to specific populationgroups;the poor, -the onerripkiyed, women, olderAmericans, and Native Americans. Second arelnItia-fives that focus on improving a particular category offunctional servicesuch as health, education(andtransportationto rural areas. Third are initiativesthat deal with the environment, energy resources,and non-USDA-funded agricultural initiatives. Thefourth category includes exaniples of initiatives thatrelate to how Federal agencies work with and assistrural co/Munities.

Assisting POpulation GroupsThe Poor

Targeting assistance to these most in need, both it-dividually and collectively as communities, is one ofthe highest priority poliCieset this Administration. .

7 Mapy Federal agencies have taken concrete actionstoTursue this pcilicy in both rural andurban contexts,as weH 'as in rural areas specificallY. For example:

The ,ocial Security Administration and theDepartmeni of Labor are conducting a demonstrationproject with the Minnesota State welfare departmentaimed at rural AFDC recipients. This work-equity pro-

... gram is testing the feasibility and gifectiveness ofcreating special public jobs for all employablewelfare recipients.

_

Three HEW agencies are irwolved in the UtahService,Unification Project, a demonstration projectto simplify access.to services for the aged, thedevelopmentally disabled, Navajo Indians, and thosein need of protection (from neglect, abuse, etc.) inrural areas, through a system of multiple-programcase workers.

Pg 5-af an_ pck_q

HUD has funded.innovative ruralprojects such, as Maine's Rural Housing Rehabilitation Project,

which utilizes community action agaticies to connectrural, lower income tiomeowners with variouS sourcesof financing for housing rehabilitation.

In addition, HUD'set aside for 3caI 1979 up to1,500 units of Section 8 Rental Assi tance paymeittscontract authority find.Low Rent Pu c Housing forthe Department's RuraisAssistance lnifiative andother selected rural procts. The purpose of the set-aside is to:

-- Promote the development of alternative housingdelivery mechanisms; for example, use of .areawide,or regional organizations in rural areas that haveinsufficient institutional means to produce neededhousing;

Experiment with scatter,ed site production ofmultifamithousing;

-

Encourage an expanded role for local develop-ers; and

Develop alternative sources of financing tounderwrite single and,multifamily housing develop-ment.

ACTION, which has created a Rural Task Force ,

to wcommend prZrifies and new initiatives, has pro-vided funds to rural groups such as United com-munity Services of Chittenden County, Vt., fa providecraft and recrbational activities for the severelyhandicapped. This mini-grant was matched by a localbank in the spirit of public-private cooperation.

EDA established the Office of Special Projects in1977 to assist community-based, nongovernrnentali,nonprofit organizations in planning and implementingeconomic development activities that benefit thedisadvantaged residents of qualifying rural placesand urban neighborhOods. In fiscal 1978, approxi-mately 20 percent of the new, Office's program fundswere allocated to rural organizations to help themidentify and implement projects that will provide lobsand facilities necessary to improve the economichealth of their especially distressed rural communi-ties. ln.fiscal 1979, the offide's funds were increasedto $50 million.

The Department of Labor has let a $2.5 millioncontradt with the Consortium for the Development ofthe Rural Southeast;-composed of two federations ofpoor peoples' cooperatives and the Emergency LandFund, for trainipg programs to upgrade the economicprospects of poor farmworkers and small farmers.

53

The Labor Department has also awarded a$48d,000 contract to the National Association for theSouthern Poor to train' about 30 economically dis-advantaged youth as community development spe-cialists. Through the 18-month Aesembly YouthEmployment Demonstration Project, the youth will"be employed and trained to work in rural counties oftwo States peprovide and maintain a variety of com-munity services.

HEW's Administration on CNIdren, Youth, andFamilies has expanded the Head Start program in'rural areas, particularly to serve an additional 8,900children of migratory farmworkers and Native Ameri!can children and an additional 3,100 Puerto Ricanchildren. .. t*

The.Community Services Administration hasused ite unique authority to evaluate all.Federalefforts with poverty implicationslo. benefit ruralareas. Funds have been prairided to Rural Americafor a study of the implementation of the:HUD born-

.. munity Development Block Grant Program innonmetropolitan areas and for a citizens' monitoringproject to oversee the extent to which local projectsare achieving national CDBG goalss These'activitips .

are aimeclat enabling-the CDBG program to moreeffectively meet the communfty development needsof the nonmetropolitan poor. ,, 1

CSA also:pas initiated evaluations of the-NationalDemonstration Water Project and the HousingAssistance Council, two major rural-serving nationalresource centers. These studies are exaMirfingdelivery system weaknesses addressed by these

, organizations arid theopiace of the NDWP and HACin making rural ihfrastructure development systemsMore responsive to the needs of poor rural com-munities. The studies will also produce policyretommendations contrtbuting to rural pragramdevelopment.

Local, community action agencies have proven tobe one of the best ways to reach low-income'people.The Economic Opportunity AmendmentS of 1978,resulting largely from Administration requests,improved CSA's ability to assist the rural poor. Theseamendments;

., Authorized $5 million over 3 years for specialpoverty programs in rural.areas.

-- Decreased the required local share of Com-munity Action Program funding fo 20 percent fromthe priavious 30 to 40 percenta .change particularlyimportant forthe poorest rural areas.

54

Returned administrative responVbilities far theSummer Youth Recreation Program to CSA rather.than Comprehensive Employment and Training Act.prime sponsors, thus removing an urban orienta-tion and offering the oppbrtunity for more rural par-ticipants.

Removed population requirements as the polecriteria for county or multicounty_eligibility forcommunity action agency designation, if at least20 percent of the families residing in the area arepoor. The development of CAA's in rural areas is'strongly encouraged by rernoval of the rule against'their estahlishment in areas having a population ofless than so,opot ---)

Made pottic or private nonprofit agencies elibi-ble on an equal basis with community action,agencies for program grants under the rural housingdevelopMent and rehabilitation authority, thusaddressing circumstances where there is no CAA.

Made local public agencies and private non-profit organizations eligible for funds to operatecooperative programs in rural areas under CSA'sEconomic Development Program.

In addition to making program improvements,the Administration requested an increase of $12million in funds for fiscal 1979 to support CAA's,particularly to strengthen smaller grantees,,themajority of which serve rural areas.

To give increased funding attention io m igrantand seasonal fafmworker populations, OSA fundswere set aside from-both emergency energy conser-vation and community food andnutrition programsforssupport of:

A hOttine to p?bvide information, Teferral, andsupport services to those in difficulty who lackedknowledge of where to turn for help;

'Training and technical assistance to supporthousing weatherization and appropriate technologyprojects to lessen the impacts of high energycosts;

Training and technical assistance-to,developimproved access-to Federal feeding programs;

Research to develop reliable demographic data .on farmworker familts; and

Training and teChniCal assistance to farmworkercredit unions.

62

ob.

Ss-

Seoretary of Labor Ray Marshall

The nemployed and Underemployed /Th unemployed and underemployed rural

America as in urban America are of great concern tothis Administration. Various Federal *grams aredirected towards assisting thete peoble to gainskills and to develop employment o portunities fortherm Soma-examples of these eff rts for rural-residents follow:

In January 1977, President Carter recommendeda $4 billion public works program to Congress aspart of the Administration'i 2-year recessionrecovery program. The local publiq works programpermitted 100 percent Federalgrants for State andlocal public works projects. Some 6,700 projectstotaling over $2.8 billion were funded in rural.andnonmetropolitan areas. In addition to brOviding jobsfor the unemployed, approximately half of these pro-jects were for the construction of infrastructure tosupport economic development activities such aswater/sewer facilities, shell industrial buildings,warehouses, and site preparation.

Important amendments to CETA and a newemphasis on rural development in the Departrpent ofLabor have lesulted in major activities on behalf ofrural citizens, In August 1977, the Secretary of Laborestablished a Committee on Rural Development to

prov.ide leadership in improving the Department'k,policies and progranis in Airal areas and to promoteinteragency coordindtion of. similar programs. TheTask Force on Rural Development within the.Employ-ment and Training Administration acts as.the execu-tiove.secretariat for the.Secretary's committee, and'actively promotes interagency agreements. Forexample:

.The Department has established an ongoing. .

agreement.with the Departments Of AgricultUreand the interior 'under the Youth Employment andDemonetration Projects Act of 1977. Conservation

' skill Araining was proVided to youths at SOO sites,at a cost of $233 million, during 1978. On June 22,1979, Secretary Marshall announced funding at$14.2 million fpr 22 projects" under the Act aimedat assisting unemployed farmworker youth. The sixYouth Community Conservation and Improvementprojects will employ the youttrin such work assolar water heater repair and developmentnature education centers. Twenty-two YouthEmploymentand Training projects will integratetraining and employment With educational pp-grams, where feasible.

A renewable 11year agreement 'with the ForestService provides forestry-related jobs to disadvant-aged, minority, elderly, handicapped, and youngrural residents in eight Forest Service regions andone area, at a cost of $12.5 million.

Several agreements with the Department ofEnergy providebfor industrial and skill training ofmigrant and eeasonal farmworkers, to equip them'focenergy-related occupations. A $3 m18-mpnth progearmprovides coal mining skiltraining, with 30 percent of the trainee positionsallotted to women. Two other 18-month programs,with combined funding of $1 million, provide skilltraining in nuclear energy related occupations.

The Comprehensive Employment and Training ActAmendments of 1978, culminating a year-long effortby thetOministration to work with the Congress torevise and extend federally fundel employment andtraining programs, should also be Of great benefit torural areas:

The reauthorization more sharply focusts CETAresources on those most in ne4c1 and simplifiesadministrative paperwork reduirements. Emphasis. onstructural employment broblems and the economicallydisadvantaged also indicates'greater attention toruiral residents. The extehsion of- youth and older

55

worker programs will impact heavily onsural areas:--In addition, up to 4.5 'percent of the funds under thenew Private Sector Initiative ProgramICEPA Title VII):will be reserved.for Indian and Native American yro-grams, which are predominantly rural.

. The 1978 CETA allocation moved rural areascloSer to funding parity based on need, and the 1979famula is the most equit,le ever.

The amendments greatly improved DOL's ability, to target employment and training resources to-those most in need, by requiring that all participantsin training programs and services exceat upgradingmust be economically disadvantaged and eitherunemployed, underemployed, or in school. PublicService Employment partisipants noW must beeconomically disadvaittag9d anti on welfare orunemployed for 15 or rribfe weeks. (The Title V1.4Public Service Employment special projects launched

. in 1977 laid' the groundwork for the 1978 amend-ments by increasing the percentage of .pocir people

' in PSE programs from 44 to 67 percent betweenfiscal 1976 and fiscal 1979.) .` v

Under the new amendments, rural concentratedemployment programs in areas of high unemploy-ment will reeelve increased funding:-

Title VI discretionary funds will be targeted todistressed rural areas, as part Of a strategy fo targeton geographic areas as well as indiyiduals most inneed.

In addition, the work of the National Commis-'sion on Employment and Unemployment Statistics tedevelop new and more accurate measures of employ-ment hardship has resulted in a report that will helpserve as a basis for more-equitable distributionaofCETA resources among rural and urban areas.

Other Labor Departmen actions that indicate theincreased attention to rfl areas include thefollowing;

,

The Bureau of Labor Stastics is expanding iitscurrent population survey data base by 10, 0 house-holds in predominantly nohmetropolitan ar as,, toobtain more accurate inforination, on rura mploy-meneand unemployment.

Tolurther add to the knowledge-base needed forimproved CETA operations, thetecretary, convened a

,-4 Rural Employment and Training Cbnference, bringingtogether for the first time a national samplsof 175program operators representing 10 different rural pro-grams of the Education and -Raining Adminisaationand the Women's Bureau. \

56'

DOL has contracted with the American Associa-*lion ofSmall Cities to train rural local govornment

officials in the use of cE1 and to survey them ontheir suggestions for impr vements in DOIpro-grams. Under the Contet, smalt city officials\ are todetePrnine and demohitrate how CETA programs maybetter and more directly serve small communities.

Under a contract with.the Department of Labor,the National Governors' Association has been review-ing thewperations of CETA balance-of-State programsfor 4heir Impact on rural areas, to 4rovide a basiS forrecommendations to improve rueal empio9ment andtraining services. An important project scheduled forfiscal 1979 iS a study of effective arid innovative job-creation approaches taken by-prime sponsors in ruralareas.

WomenRu'ral and urban women share many ol fhe same

concerns, such as child care, battered wives, dis-placed homemaker% and lower wage/lower skillIttibs.However, because 'of poor transportation seivices or Agreat dislances, niral women are also often isolatedfrom-those health and social services, educationalprograms, and,better income opportunifTeslhat areavailable. They also face mbre slowly changingmores thataffect credit avallabilityand other issuesof concern to worrien. Federal efforts to asSist withsome of these problems inckide the following:

To help respond to. the problems of rural womenin Appalachia, the ARC has provided funds to the'Council on Appffiachian Women so that it cin estab .

an office and work on a data survey, a women'scredit union, a group insurance program ior Ap la-

chian wornen, and a resource and informati centewhere women can get assistance.

The Women's Bureau 0

Conducti:d a serie of hearings on the employ-ment and economic problems of rural low-incomewomen. .

Consponsored a natio& conferenc ralwomen. 49\

Developed concepts fordemonstr tion projectsfor the training and employment of ral womenand implemented five such projects through use ofCETA funds./ Earmarked nearly half of its fiscal 1979 budgetfor activities to assist rural vionlen. These includestudies on employment of rural women, demon-stralion projects for employ4pent and training of

a

,

rural women, and,meetings on employment and-economic problems of low-income rural women.

In fiscal 1979:ACTIPN has increased supportfor programs to assist rural worripn in Identifying andfinding solutions to their needs and problems.Assistance for specific projects in fiscal 1978 irtcluded: .

.A orant to'American Friends S ervice Commit-tee to enable rural women in Lincoln and LoganCounties, W. Va., to 'demonstrate hoW to utilizevolunteer initiatives in advocating employment andother economic rights.

. .A grant to Sumter County__YAGAlp provide

technical resources needed by rural women in'-`Clarendon and Sumter CO,Vnties, S.C., to modify

. and adapt economic and Social development orb-ject models t9 meet loci?! adverse rural conditions.

A grant to Rural American Women, Inc. to plan,develop, and provide advice to ACTION aboutfuture steps the agency might take to use volun-teers to improve socioeconomic conditions forwoMen in rural areas.

A grant to the Center for Child/Family Develop-ment, University of Oklahoma, to implazent the '

p.

IP

4,-

4-e

,

Oklahoma Rural. Indian Women's program. The'-' program Is designed to,meetselected taslo

human needs of Indian women throUgh a vofunteerprogram that foOuses mainly upon legal rights end'community service. .

Older Americans _

Older Americans in rural areas are among thosewho suffer most from the problemi of rural poverty,substandard housing, Isolatipn, and inadequateaccess to health care and other services. ThialSrecognized in important 1978 amendments to the .Older Americans Act as wail as numeroua otherFederal responses to'the rural elderly. Examples ofrecent,Federal efforts to assist this population groupare given below.

The 1978 amendments to the Older AmericansAct clearly charge the.Administration on Aging withresponsibility for considering, the special needs ofthe rural elderly and authorize specific activities and.emphases to assist the rural elderly. These includegrants for Oficial training courses to Meet the needsof rural service providers, special Coxideration fordemonstration grants for projects to Tee the needsof the rural elderly for improved or expan socialor nutrition services, and special emphasis o therural elderly in area plans for outreach efforts to

57

identify and intetm those eligible for assistance. Inkeepingtwith this intent.

In fiscal 1978, ADA funded at least half a dbzen'research and development projpctspertainingeither exclusively or in part to rural areas. Severalmodel projects concerninPutar problems alsohave peen funded, such as an eftort by the Idaho -1Migrant Council to demonstrate how to reachelderly Mexican Americans who formerly weremigrant and sabonal farmworkers and have now.Settled in rural Idaho.

At least one.third of'ACTION's 695 older.American volunteer projects are al rural areas. Thevblunteers are serving in a wide variety of assign-ment. For example:

In Wyoming, Foster Grandparents are-servingin rural Hdadstart programs, day care centers, andelemenlarY'i schobis working with children withspecial needs,.

In East Prairie, Mo., RSVP Volunteere serve inrural schoOls where the average income of pupilsand their families is $3,000. The volunteers assistwith a heart scan service, work in a health unit,and help in nutrition cladses.

In rural Appalachian Ohio, Senior Coinpanions. assist the frail elderly pith basic daily living activi-- ties, often providing the only service availablelo

prevent their premature and institu-tionalization.

4

The Tennessee Valley Authority has identifiedareas where it can help fill gaps in existing State andFederal drograms for the elderly and has launched ademonstration program with the seven State agingagencies in Its region to:

Supply each of the seven States with a vanequipped to provide health checkups and healthdducation information in isolated rural areas;

Accelerate training of State agijag personneland senior citizen leaders to conduct residential

/ energy management and conservation workshops.

Bui-id more than N.warm room modules forsenior citizens to determine 'Whether low-incomesenior citizens will heat and live in only one roomduring the winter.

Hire senior citizens to staff a program to pro-duce free energy audits of homes using electricpower.

58

increase aid to low-incoMe citizens in growingvegetable garderit, by providing technical advice,seed, fertilizer, and other help.

Consider ihe.elderly in review of raie structures.

Native Americans-

Native Americans comparedas a whole Withaotherpopulation groups. in rural America, are the most dia.-advantaged by nearly every measure, ranging fromincome and quality of housing to educational attain:ment and health status. The foiloiving brief high-lights of new or expanded initiatives ori thelf behalfrepresiint only a imall sampling of the steps beingtaken to target more Federal resources to Native 'Ameridans. The initiativei of the Farmers HomeAdministratior and other USDA agencies, as dis-cussed in the two preceding chapters, should benoted as shoUld the work of the Bureau of IndianAffairs. (A description of AIA's ongoing work waibeyond the purpose or scope of this report, which isfoóusing on new initiatives.) it should also be notedthat many of the 6ther efforts discussed in the pre-1sent chapterfor example, those directed to thepoor whoever they arewill benefit Native .

Americans.

HUD has increased its allocation of ComMunityDevelopment Grant funds to Indian tribes and NativeAmerican communities frog) an average of $13.8million Per year during fiscAl 1975 through 1977 to atarget of $31 million in fiscal 1980.

The Department of Labor is establishing threeaddltional Job Corpacenters for Indian and NativeAmericans. 4

CSA has reestablished an "Indian desk" that iaexpected to increase supportof programs for rural.Indiaes beyond recent small studies.

In October 1977, the SecretaFy of Health, Educa-tion, and Welfare approved a new Indian initiative forHEW, based on re córnmendations by the Intra-Departmental Cotinel on Indian Affairs. Included area new effort to disseminate accurate information fOrand about Indian people and actions by each HEWagency to improve delivery of its service to Indians.

HEW's Administration for Public Services haslaunched an Inqian research and developmint initia-tive in collaboration with thaAdministration forNativie Americans (ANA). This effort, initiated inSe*mber 1977, is designed to test alternative waysof improving the delivery of Aocial and child welfare

A services to Indians. The focus of the four rural pro-jects is on social services available under Titles XX

'and IV-B of the Social Security Act. For example, the',Standing Rock Sioux Tribe has a grant for a capacity'building demonstration of Indian social servicedelivery and thelite Mountain Lite Tribal Council isengaged in demonstrating improvement of Stale

, agency social service delivery to.its pebble..Througlh a grant to Alu Like in fis,cal 1 78, the

OA established six satellite outrach"àncf referralcenters on Hawairs outer, rtiral islands.'T esecenters p9tentially serve 150,000 native 'Hawaiiansthrough linkages with local and county resource .

if- agencies.- All twelve of the Alaska regional corporations

were funded by ANA in fiscal 1978, to improve theiradministrative and management systems, to enhancetheir capabilities to administer programs directedtoward service delivery to approximately 60,000Alaikan natives, and to enableathem to pravidelinkages between other service an resource agen-cies.

In fiscal 1977, the ANA develope a new policyfor serving eastern Indian groups andtribes, underwhich it has funded eight rural, nonresirvation Indianorganizations for 3-year projects aimed at developingviable management and administrative systems,creating linkagesayilth service agencies to ensureequitable treatment of Indians, and mobilizing otherresources to serve the 18,500 meinbers of their ser-vice' populatidns.

/Through an interagency agreement with theEqual Employment Opportunity Commission, the 1

ANA flas initiated a Tribal Employment Rig ts pro-jeot, Both financial and technical aasletano hasbeen provided to aid some 15 tribes in the e tablish-ment of Tribal EmplOyMent Rights offices which helpto enforce Indian employment preference Under con-tracts on and near reservations and to otherWisepromote imfroved employment opportunities fortheir Indian service populations.

Improving Services

Health CareStatistics reflect a high incidence of serious

health problems among rural Americans, who afsohave access to fewer heal/h care resources. TheAdMinistration pas focused on rural health problems,as indicated earlier in this report. In addition tothose efforts related to the White House rural inz'itiativei, the fqilowing areramples of sPecial HEWand Appalachian Regional Commisaiori initiatives .

focusing on rural healy- The Center for Dis ase Control has initiated a

telephone lecture series to- train iaporatory tech-nicians in rural hospitals, who otherwise would havelittle access to ttaining courses owing to their isola-tion. Eleven cooperating networkS are reaching motethan 400 rural hospitals in.13 States. It is estimatedtiternore than 25,000 students annually receive the,handoutd, hear the tapes, view the slides, and havean opportanity to ask questions of CDC scientists

59

Over a live hookup to the Center-et the conclusion ofeach lecture. Twenty-five or More new lectures arebeing addpd each year to provide an expandingchoice emphasizing current laboratory subjectspresented in a lectUre-slide format.

The Center for Disease Control also has'providedevaluation assistance to the Ozark Regional Authorityand the Statet of New York and Mississippi In thedefinition, by geographic arm+, of those rural sub-populations with a greater prevalence of specifichealth problems and in the deScription of the avail-

.-ability of health.seririces to those subpopulations.

HEW and the Appalachian Regiánal Commission -

have studied obstacles to providing qualitY healthcare in Medically underserved areas of CentralAppalachia and have reported their findings in apublitation entitled Medical indigency in CentralAppalachia. In response to the findings, the ARC has'recommended greater attention to thhealproblems of the medically indigent in al areas.

The Bureau of Medical Services has uridertakea .a 3-year demonstration project to develop and evalu-ate various methods of delivering burn care on aregional basis in rural as well as urban areas.

The National'institutekm Drug Abusels pre-paring a report on its actX;Ities in relation to ruraldrug abuse, The report 44.1.1,adt1ress thesnature andeXtent of chiug abuse/iP rural areas, special needsand circumstances jh rural areas, and recommenda-tions to alleviate drug abuse. ,

The Nationa4/Institute on Alcohol Abuse andAloOholism has'awarded $35,000 to each of-five ruralC6mmunity Mental Health Centers'-alcoholism treat-ment programs to identify problems'in rural alicOhol-ism service delivery at the local level. A methodology'will be developed far researching problems common gt

If to the five programs: sl

HEW' has,expanded the Corpmunrty HealthCenter, Migrant Health Center, and Health Under-, .

ser,ved Rural Areas prograrrfs to increase the number, Of rural people served by 60 percent. At least 40 per-

cent of the serViCe delivery capacity of ttie new Com-munity Health Center projects.'Will be devoted to-'rural areas under trre program's extended authority,

The Bureau of community Health Service

increased Community Health Center programsuppOrt for rural area projects by 4p për-d'ent dur-ing fiscal 1978;

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;

ctrere serving rural communities by the end of the'year. Rural assignment projections are 1,986 infisbal 1979-and 2,671 In 1980.

HfW is implementing the Rurel Health ClinicServices Act, an initiative strongly supPorted.by theAdministration to bolster the economic viability ofrural primary care centers by providing Medicaid andMedicare reirnburSements forgervices.performed bynurse practitioners andlephysician assistants in ruralclinics.

Education.

Rural residents- continue to lag behind urbanresidents in the area of education, a factor that con-tributes to the persisteAce of higher poverty rated inrural areas. Education disadvantage.alsit limits the'ability (Attie most disadvantaged rural people tobenefit from the 'growth of a wider range of job bp-

. portunitiA now occuring in rural Amer.ica. Broad .policy-level initiatives of HEW aimed 'at improvingthe Federal role in rurat education are,discussed

increased asgn,ments of National Helth Ser-vice Corps st6ff *rriore.than 80 percent dying _

fiscal 1978, to the point, that 1,224 Corps members

below.HEW is launMing a study of Federal aid to rural

schools to look at how Federal education policyserves students in rural 6ohool districts. The firstphase will focus on whether_ allocation formulas andcompetitive grant application requireinents work tothe disadvantage of rural districts. The second phasewill concentrate on whether prlSgrarn regulations piadrpinittrative procedures at the Federal or State

_level create special probiens,for rural,districts and'whether rarsi districts have special needs that exist-ing Federal or State proorams.fail to address. For thestudy, rural will be definad as any district in a' non-metropolitan county that &les not contain a townwith over 10,000 population.

The Buryeu of Elementary and Secondary' Educe-tion has initiated a proposal to_analyze data aboutthe effects of Federal legVlation and crjteria on ruralareas. A dialogue hag beerNktarted-with rural organi-zations such as the National Rural Center and withsevetal Fsderal ageppies,includirrg,the Department,of Agriculture, to look at rOraleducation problemsand generate activities /o address tile apparenteffects of rural uriderrepresentation in Office ofEducation programs. 5,

The. Nation) Institute of Education is suPporting .a studY of the experience of major efforts to improverural education, such as the Western States Smallschools Program, the Sodthern Appalachian Leader-ship-I-raining Program, NIE'p Experimental Schools

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Program, and-the Office of Education's Urbanlflural$ahool Development Program. Funded thrdugh'Theeducation corninisstons of -the Statee, the study willconclude in 1980.

As part of NIE'sstudy of vocational education,there will be an assessment of a number of issues,'related to rurah areas, including ,funding patterne, the.'accessitiiiity of proVems, and correspondeneebetween voCational educational prograins, labormarkets, and rural life skills. The study will include a

6 historical analysis of the role of vocational educationin rural areas and a compariSon of the impact 9f

&Federal legislation in predaminantly.urban verSuspredominantly. rural-States.

.

NIE is, consulting with a variety of groups in,designing studies related to issues such as citizen...participiition in rural .schools, the iMpact of schoolfinancelormulas on rural education, and alternatives

the consdi ation of rural-schbols..,.t

400,

Development Corporations to undertake housing'rehabilitation, home repairs, and other neighborhoodImproverTient programs, In fiscal 1978 and 1979 anestimated$2.3 million (out of the $8 million totalproject funding) wasodevpted to rural projects in'Mississippi and Virginia.

Statisticdon rural housing indicate a continuingproblem of substandard t)OtIsing in rural America,particularly, afflicting Me poor, mindrities, and theelderly, To help kleal with rural, housing problems:.

HUD and DOL's Office of Youth Progiams jorntly.sponsor the assignment of youths to Communtty

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HUD has'selected the State of Nortft Carolina toreceive a.grant as pzirt of a land title 'at5inonstrationsystem. Nwth Carolina will receive $354,000 to workwith two rural counties, to be selected by the Stateas part of its balanced growth strategy. These.coun-ties will receive monies to develop model systemsfor recordIngland title information. Once inOltuted, .

these systems will save homeowners, housing devel-opers, and all concerned with buying and selling landfhousands'of hours and ma'ny dollars currentlyrequired for title searchers. Reducing the probleen ofassuring clear title, along with simplifying theprocess of getting HUD assistance, will,make housingmow accessible and affordable to rural residents. .

HUD has also'initiated various task forces andprojects to addr'ess the housing problems of moun-tainous rural areas, primarily in Appalactila, including:

kA task group on eastern Kentucky's_c6alfield

housing coordinated by HUD's Louisville AreaOffice whose objective is to design a housingstrategy for east4n.Kentucky; and

The impleroentation of a new HUD/FmHA VA-approved "case method" septic tank percolation,system for mountainous areas. HUD has issued a

to.its Minimum Property Standards forone and.two family dwellings to be applicable inKentucky that will permit the use of the casemethod of stOtic tank effluent dispesal as an alter-nate to the method normally used.

in addition, HUD is pursuing`more generalreforms with special implications for improved pro-gram delivery in rural, America such as:

Encouraging modeSt designs in subdivisiondevelopment and,housing construction to broadenthe otkportunities for 13etter housing for moderate-inconTh families; for example, encouraging thatstreet paving, curbS, and sidewalks 'conform tolocal community stndards.

-- Coordinating the interagency development ofuniform mortgage application, appraisal, and otherformq as required by Section 905 of the Housingand Cb mmunity Development Amendments of1978followup to the Paperwork Reduction Com-mission.

CSA has undertaken a 3,:year national programof rural home repair, designed to provide a modelFederal program,and demonstrate new approacheeto the problems of rural low-income housing whichcan be copied by rural community organizations. TheCSA financial commitment is anticipated to be $9million, in support`of 21 local projects aimed at thelowest inbome hai'l of the poverty population. Miringthe first year, the grantees performed substantialrehabilitation on 1,440 homes and mobilized aOproxi-mately $5 million of non-CSA resources for theirefforts. Supportive research and evaluation is beingprovided by Rural America to gauge the dimensionsof tna rural home repair problem, examine significantissues in the design of a Federal response to theproblem, and study project Niriehce.as a basis forfuture program 'development

TransportationTransportation facilities and services are a major

factor in esOmbating isolation,and improving the ac-Cess of rural people to economic opportunities aswell as needed public and private services such as'health care. The Administration's-Concern about theproblems of rural passenger transportation, par-ticularly those afflicting the disadvantaged, Tere ex-

. emplified in January 1978 qy introdupUon to

62

provides for a unified transpoqation assistance pro-gram specifically for small uiban and rural areas, tobe administbred by the States. The Department. ofTransportation developed and Congress enacted thiscomprehensive 'highway and massiransit legislationthe piirfaceTransportation Assistance Act of1978. ,

Included in this new statute is authorization foriricreased funding for rural Federal-aid secondarySystem roads and a new program of continuingcapital and operating assistance to local publictransPortation in yural and smell urban areas.

The new law 'authorizes funding of State agenciesfor administration of the program and provision oftechnical assistance, including project planning,program development, management development,anp research. The fiscal 1979 ,appropriation of $76.5million for small .urban and rural transit is apportiOnedto the States by a formula based on 'nonur.banizedpopulation. The Federal share of capital copts maybe as much aS 80 percent, while that for transit ser-vices Operating costs may be up tot0 percent.

In addition to implementing these new prpgramsand those initiatives led by the White House asdiscussed in chapter 3, Federal agencies are'addressing rural transit.needs through a range ofother activities. A brief sampling of these follows:

DOT has 'initiated a comprehensive study of theproblem of rural road defiCiencies and the needlorimprovementS for different types of local rural roadtraffic, partioulaq the movement of bulk commodi-ties by truck. An advisory team representing variousinterests in 'rural road problems has been fortned toensure that the study is directed toward relevantissues.

The Rural Transportation Adisory Taskc Force,jointly chaired by the Secretaries of Transportationand Agriculture, and established by the Local RailService Assistance Act of 1978, represents the agri-cultural community, transportation industries, aca-demia, and the legislative and exectitive branches of.government. The task force will hold public hearingtand issue-specific recvmmendations for a railroadtransportation system adequate to meet the essen-tial needs of the agricultural sector. The jegislatidnalso makes certain rail branch line§ that are not ,

subject to abandonment eligible for rail service con-tinuatioA assistance.

In response to special needs of isolated ruralfamilies and disadvantaged population groups,HEW's Administration fbr Public Services has, fundedsuch projepts as:'

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The South Eastern Rural Arizona SatelliteDiagnoStIc Service Centers demonstration, de;signed to make social services more accessible' toindividuals and families living long distances fromsOcial service agencies locatild lit urban areas; and

Two rural (Arkansas/S46,000 and Maryland/175,000) and one Mbied urban-rural (Michigan/$98,000) demonstration projects toIhow benefitsfrom coordinairon of existing transportation ser-vices for transportation-disadvantaged groups. TheAdministratidn for Public Services has contractedfor evaluation and technical assistance seri,ices,including onsite aid In planning, setting up, andimplementing the projects.

Focusing on the EnvironmentWater Quality Protection end Conservation

Rural water quality has_received increasing atten-' tionjeflecting Its importance not only to rural

America-but aiso to urban communities adversely im-pacted by rural water pollution. Recent Federal ac-.tions include the following:

Aa a redult of cdoperative efforts between USDAaild EPA to lessen impacts on Water quality fromagricultural production, Section 208(j) was added tothe Clean Water Act of 1977, to authorize cost-

sharing assistance to rural landowners for establish-ment -of nonpoint aelirce Water pollution control Pro-grams.

EPA and USDA cooperatively: .Have seven,model implementation Projects

underway to improve w;AWr quality by controllingpollution of atreams fronf agricultural sedimentand nutrient and:chemical run-off, While maintain-ing the prodbctive capability of soil and waterreserves. .

Will initiate an additional 12 to 15srojects infiscal 1979 to assist farmers and rancherkin estairllshing best management practices which reducebr prevent pollution from agricultural activities.

EPA Is helping-rural areas clean up lakes thathave been affected by pollution, through the CleanLakes grants proOram (authorized under Section 314of the Clean Water Act). Enhancement of the lakesprovides for greater public use of a valuable resourcein many rural areas. Rural projects underway include

Cobbessee Watershed, Me.; Lake Broadway, S. C.;an White Clay, Wis,

A is now authorized to make grants to correctproblems-in privately owiled wastewater treatment,facilities- serving one or more principal residencesand small communities, in residences constructedPrior to December 27, 1977. Up to 4 percent of the

63

States' &Locations for construction grants mutt bereaerved for funding individuatpdvate systems MailStates with a' rural population of 25. percent or moie.This provision is of. special significance to ruralareas and small towns. Urben States have the Option.of setting aside up to.4 percent of their allotmentsfor this purpose. ; .

Other agencies are also involved in combating'water pollution from agricultural lan0 run-off. Forexample, the Old' West .Regional Commission (OWRC).has funded:.

L. Research end education in improving cropping'practlees and mare favoreble growing patiernetohold moisture in the soli. The OWRC developed a"No-till drill" capable of ieeding into existing stub-ble to eliminate the danger of saline seepi.

Development of criteria.fof.optimizing use oflimited water supplies, andenergy aupplies, forirrigation ot cornand grain, sorghum iv the centralGreat Plains.,

Public education programs in water resource.management;to improve public awareness.andunderatarlding -of Major factors involved in intelli-gent management of water resourcei.

The Upper Great Lakes 1,43gional Commissionhas funded demonstrations af two new wastewatertreatment systergs:

A tertiary treatment system thai purifieswastes by passing them through a peat bog isbeing monitored in DruMmondrWis., to determineits effectiveness and envkonmental Irshliacts. *

A "'round system," whiCh uses individual'septic tanks linked by small diameter 'sewers to acommon drainage mound, has begun operation inWestboro, Wis., and has received national atten-tion.

The Four Corners Regional ComMission pro-vided MAO to the Cortaro Water Users Associationto investigate the possibilities of using wastewaterfrom the City of Tuscon, Ariz., on croplands in theCortaro-Morano irrigation District as an alternative tocontinuation of discharge of the wa#tewater into theSanta Cruz River. The studysrevealed that the nitrateand Sulfate pollution of the river by the wastewatercould be stemmed by mixing the effluent with theexisting irrigation water supply. Absolute loss ofwater from the area would be reduced and the grossincomes of the 53 members of the Irrigation district

64

v.

would be increased. The increased productivity ofthe 20fl00 acres involved would be of majoreconomic ImportancOo several atrial commuNtiesand woukl coiltribute significantly to Arizona'seconomy.

Protection of Agricultsusi Londe

Agrictiltural land conversioh has significantly affooted environmental qUaliW'and has diminished, theNation's ciarilsnds base. As an environmental ,

resourCe, well-mlinaged agriculture) .land (1) .riducesrunoff and aide in rephinlshing groundwater ,supplies'.by abiothing.predipitation; (2) buffers environmeni=ally sensitiv*arlimia, and. (3). can he used forWastewater treatment through land treatnient pro-CeS1105, ,

Of nationsi significanCels EPA's promulgation ofan AgricultUral.LandsTProteotion Policy, which is'aimed at retaining; .

Prime and Unique farmlahd;'. Farmiend of locel and statewide importance;

Faimiends in or contiguout to environmentallysepstive areas: and

Farmlands With significant 'capital investthentsin Beat Management Practices.

This policy is intended to limit the adverse impacts'that EPA's programs may have on farmland. EPApolicy is to.protect environmentaily significantagricultural` lan4 from irreversible conversion due toactions such as:.

Location of sewage treatment plants and inter-ceptor sew";

Rulings on where new sources of pollution mayWild; and \

e Decisions on'tontrols and use of pesticides.EPA plans to implement this policy through:

Consideration of agricLØtu.rat !arid impacts in thepreparation of neyi or revis d regulations, standards,and guidance;

Consideration of fermi nd protection in sewerproject decisions;

Inclusion of determinations of agricultural landimpacts in environmental assessments and impactstatements;

Consideration of regional or local significanceand economic value of farmland in enforcementactions;

Identification of research needs in regard'to theenvironmental roles of agricultural land;

Pursuit of a public awareness program recog-nizing the environmental value of agricultural land;

Tdchnical assitance to support and encourageState and local governMent programs for agriculturalland protection;

Consideration of farmland pittection alter-natives in EPA permit actiOns subject to environ-mental impact review;

incorporation bf State and locally rec.ognizedsignificant farmlands into EPA-required environ-mental plans and implementation approaches;,

Opportuniiies for rpview and comment on pro-posed EPA actions,.

Project reviews by EPA; andIntergovernmental coordination.

In another major step, the Chairman of the Councilon Environmental Quality and the Secretary ofAgriculture signed an agreement on June 14, 1979,whereby seven USDA agencies will transfer $2million to the CEQ to assist with a NationalAgricultural Lands Study. Underthe co-chairmanship.of the USDA Secretary and the CEQ Chairman, thestudy will determine and evaluate:

The quantity, quality, locatiOn, and ownership àfthe,Nation's agricultural lands.

The impacts of industrial, urpan, transportation,and energy development, and other competing landuses On the future availability of agricultural landsand on related agricultural services;

The urban ef*ts of agricultural land rentention;The effects of Federal and State programs,

policies, laws, and regulations on agricultural land;The impacts of agricultural land losses on the

Nation's capacity to meet future domestic demandfor food, fiber, and energy;

The impacts of agricultural land losses on tt,leNation's capacity to develop future foreign policiesrelating to international trade and humanitarianassistance.

The economic, social, and environmental effectsof converting additional lands to agricultural use;

The economic, social, and envirOnmental effectsof alternative methods for preventing or retarding theconversion of agricultural lands to other uses;

Techniques and methods for maintainingagricultural land availability;- The relative roles of the private sector and local,

State, and Federal governments in implementingmethods for retaining agricultural lands.

Ways in which Federal programs and activitiesmight be made more consistent with the objective ofretaining prime agricultural lands and with local andState programs designed to meet that objective.

Focusing-An Energy

The Admigistration ii-acutely aware of the inter-relationshilisbetween rural employment, economicdevelopment, and energy costs. Conseriation andefficient utilization of energy, development of alter-native energy sources, and conversion to less-expen-sive, more abundant fuelt- are increasingly importantconcerns of a number of agencies. For example:

The ACC has funded several demanstrations'Ofthe use of wood as a low-cost alternative source ofenergy. Under these grants:

a.WA and Maryville College (Tennessee) aie

demonstrating pyrolysis of wood for heating fueland gas.

Georgia's forestry commission is supplyingheat ospital with a wood gasificatron Rlant.

orth Carolina's energy department is estab-lishing a timber development organization to helpwith wood-energy programs.

EDA has provided funds to economic:Ovelop-ment districts to support development and incorpora-tion of energy-related faotors into their long-rangedevelopment planning and to employ energy special-ists to help local governments and businesses reducetheir.energy costs through reduced consumption andriew technology. EDA will review the results with aview to'hov energy-related initiatives migtO bb4incor-porated into areawide economic developrhant &forts.As examples of these projects:

Three economic development districts inGeorgia.report savings of 20 percent in energy useand costs as a direct result of energy audits ofpublic buildings, including schools. AlSo, localgovernments there have initiated cost-effectiveenergy programs to strengthen their industrial jobdevelopment activities.

The Arrowhead Regional Development Commis-sion (Minnesota) is reviewing energy impact issuesand considering alternative sources of energy,such as wood and wood chips, for public buildingsand industrial application.

The South Western Oklahoma DevelopmentAuthority has been given EDA funds to support anenergy information network designed to provideenergy conservation data from economic develop-ment district studies and projects.

The Four Corners Regional Commission has

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provided continuatioh funding of $136,722 to theColorado Energy Research Institute for research anddemonstration of the technical -and economic feasi-bility of energy production from agricultural wasteresources. If these feasibility studies prove prothising,a $14 million plant would be constructed-to turnfeedlot waste into methane ga's in sufficient quantityto meet 40 percent of the power needs of the City ofLamar, Cabo. (population 7,800). This project repre--sents bOth an important alternative source of energyond a potential for economic development for anumber of rural communities.

The Appalachian Regional Commission has:

-7- initiated coal mine labor-management relationsdemonstrations In rural Kentucky, Pennsylvania,and West Virginia, to deal with a major impedi-ment to producti6n 6f Appalachian coal. Membersof both labor and m;ilagement will receive trainingat mine site aimed at improving communicationand grievance settlement, and thus the stability ofocal economies dependent upon the coat miningindustry.

Established a policy advisory council on energythat has recommended an 11-point energy policyrecognizing the important of Appalachian.coalyand rinewable energ urces, the heed to pro-tect the environment atd milling area residents,

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and the need to provide roads, housing; schools',and other community facilities, seivices, and pro-grams needed by the population affected byenergy development.

Held four seminal's on coal 'mining produotivitiand the impact of Appalachian mining communi-ties on productivity, plus seven foilowup seminarson land acquisition for miners' housing in centralAppalachia, envirOnmental health, and otherissues. The results will be-reported to the Presi-dent's Commission on the Coal industry.

The Ozarks Regional Commission has organizeda lignite task force and, in conjunction with, theDepartment of ERercly, is funding technicalassistance to small rural communities in Arkansasand that will be Impacted by mining andhippi of lignite.

Risffng energy costs for home heating and coolingare rapidly escalating the cost of housinb in ruralAril-erica. The most serious impact of such increasingcosts is felt by low-income families, who are leastable to meet such costs without sacrificing satisfac-tion ohother pressing needs. Development of rowercost energy systems_ and more energy efficient hous-ing is an essential priority. To this end:

The Southwest Border Regional Commission

"A:has provided $400, the New Mexico SolarEnergy institutejor acooperative effort among thesolar energy offes of the four border States todemonstrate the,use iDf solar energy and conserve-tion techniques to upgrade existing low-inComehousing units. t

Consistent With its substantial involvement inen rgy programing for the poor, the Community Ser-

Administration has developed and published aSolar Energy Policy, an'important elarriept of

which 0 rural...solar development to reduce depen-dence,on expensive fossil fuels and conventionalcentralized power sources. CSA will supPort a Majoreffort in rural areaa to develop and demonstrate low-cost dispersed energy deneration systems, usingtechnologies appropriate to the needs and resourcesof the rural,poor, and concentrating.on solar spaceand waier heating, biomass converthon, and sscaie hydro and wind power. 11 line with itsJicy,gsA has funded:

Efforts to link appropriate technologies withthe energy problems of the poor;

A low-fiead hydro study to determine the poten-tial for small hydro detvelopment; and'

Aroject to develop methane disgesters foruse all farm settings. .

Focusing on Agriculture

The importance of agriculture in rural economicdevelopm in being focused on in a number of nerinitiatives th regional commissions. For example:

The Old Wes Regional Commikion has fundeda variety of proje ts including:

Developmentsystem at the Unitains nearly 100 dfarmers and rancment judgmentsThe system haregion.

f AGNET, a computer-basedsity of Net9raska which con-

cision models permittingrs to,make informed manage-

n all phases of their operations.pread throughout' the five-State

VINN

-7 Demonstration to the region's firmers thatbenefits can, be derived from minimum tillage farm-ing,'with emphasis on fuel savings, machinerydepreciation, soil structure and filth, wiQd andwater erosion, and economic benefits.

Determination of the economic feasibility ofproducing specialty cheesies in Montana.

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The Four Corners Regional Commission has'awarded $118,975 to the University of Arizona todemonstrate guayuie as a cash crop.

The Southwest Border Regional Commissionhas awarded $109,496 to the Texas A&M ResearchFoundation toestablish experimental plots for fur-thering development of guayyle as a'vlable rubbercrop in the Southwest.

The Coastal Plains Regional Cornmission hasprovided $150,000 to assist in the establishment of'the South Carolina Agri-Development Cooperative,whicil will serve minority farmers with a vegetable

s. Processing and packaging facility in Orangepurgrs.Other recent Coastal Plains initiatives include:

A grant of $72,000 to Columbia County, Fla., forthe development of a farmers market and canneryto serve small farmers in the area who do not haveaccess to other marketing and processingfacilties.

, A grant of $351,000 to the Virginia Departmentof Agricultureand Commerce, to support engineer-ing design and site engineering of a large-scalecattle finishing, sidughtering, and marketing facility,as well as training of management and productionsupervisory personneMonstruction funds providedby private gources total over.$8 million.

Working With Rural Communities

A major problem for many rural communities istheir lack of institutional capacity to deal with thecomplexities of the intergovernmental_system andthe multiplicitrof Federal programs and associatedregulations. Not only is the Administration workingto simplify the system and consolidate programrequirements and processes, it is also searching forimproved ways to help rbsr4Lcommunities deal withtheir development neecIA in amore' constructivefashion. For example:

In February 1979; HUD completed a major studyof small city development needs based on a mailsurvey of almost 2,000,gmall city chief executives,48intensive Community case studies, and 17 group ...-mgetings with city officials held in every part of thecountry to discuss development needs and how theFederal Government might best help small citiesmeet tlaem. (The study report is available throughHUD's Office of Policy Development and Research.)

-.HUD has increased its rural risearch activities441

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in fiscal 1979 frozn approxintately 8 percent to'12 per-cent and has bzeei: working witOhe Farmers HomeAdministratian to jointly develop a rural agenda ofissues and projects. Current projects include a majorevaluation of Section.8 low-rent houging assistancein rural areas, a rural housing needs assessment, ananalysis of -r-Dral credit Sip* and demand, a rural 8

segment in the research series "How Well Are WeHoused," and a land title recordation project.

In order to assure accurate data on rural housingconditions, the Annual Housing Survey has beenrevised to use a doublosample in rural areas toincrease statistical reliability. Further, special ques.tions have been added to the survey to deterniineconditions which are unique to rural areas.

HUD has provided funds to increase the numberof ryral housing counseling agencies and strength'enexisting agencies. The Department has also increasedits allocation of comprehensive planning assistance(Section 701) funds to nonmetropolitan jurisdictionsfrom 13 percent in fiscal 1977 to *percent in 1979.

In January 1978, the Secretary of Housing andUrban Development established a Task Force onRural and Nonmetropolitan America and directed itto recommend concrete steps for:

Increasing and improving the use of HUDresources in rural areas; a

Eliminating unnecessary overlap with dtheragencies; a

Reducing the cost and administrative burden ofoperating HUD programs;

Assessing rural and nonmetropolitan needs toassure an adequate allocation of HUD resources;

Pro iding technical and planning assistance;and

Promoting alternative delivery mechanismswhere necessary to improve program effec-tiveneds.

The task forcl report has been circulated widelyand in response to its recommendations, the Depart-ment has established an internal rural coordinatinggroup and has undertaken a range of specific pro-gram initiatives, including the 2-year rural assiStanceinitiatives in two demonstration States (NorthCarolina and Washington) discusSed in chapter 3.

An additional step that should help rural communi-ties and smaller citiea is the June 8, 1979, change inHUD's Urban Development Action Grant require-ments, whereby cities with populations of_less than

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2,500,wHi no longer have to provide proof that theycan fulfill aft pr9wisionsi0 a upAs in order to beable to obtain a grant. Only the standards set for allcities with populations of less than 25,000 will apply.

* The Commerce Department! s Economic Devel-opment Administration, which provides planninggrants to over 200 predominantly norrmetropolitaneconomic development districts, has provided fundst Cs:

The National EducatiOn Institute for EconomicDevelopment, to support the planning of its pro-spective training, technical assistance, and researchefforts to help regional planning organization staffand board members improve theirtechnical capa-bilities in program administration, econoMicanalysis, and formulation of develoOrnen options.

14 economic development district agencies, tosupport their participation in a demonstrationdesigned totelp EDA-funded entities i prove their-effectivetness by better organizing khe estmentof their OWn and other resOurCes intpri rity termswhich link long-range planning and str egy impIementation..Statutory economic develop, ent pro- PM.,,grams are basic to this comprehensive conomicdevelopmeit strategy process. However, suchprograms will be refined Sy the new strategyaction plans, whiqh will allow EDA to negotiate an

implementation agreement with theeconomicdevelopment district and target its funds forplaces on a longer term basis than previously.

Eight econorritc development district agencies,to egtablish revolving loan' funds from which theycan make loans on projects designedb improveemployment opportunities. .-

The Delta Foundation, tti establish a "capital'access center" in supp6rt of needed economicdevelopment planning and prbjects and privatebusiness finance for a 14-county area in Missis-sippi.

At least 30 new interlotal economic develbp-ment district organizations, to help them develop acapability for economic development planning.

Existing4conomic development district agen-cies, to help them provide specific economicdevelop services to local governments within theirjurisdiction.

EDA CSA, the 'Office of Minority BusinessEnterpris (Commerce), and HUD have providedfunds preparation of a Handbook for Urban/RuralEconomic Development Planning and implementa-

ztion. The purpose is to assist local organizations inapplying methods and techniques for describing and.

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analyzing subregional,economies, defining andassessing critical economic issues, seledtingeconomicodevelopment projects, developingbusinesi'ventyre packages, and monitoring andevaluating project impacti.

EDA and the Center for Census Use Studies arepreparing a Handbook for District Plapners, whichwill provide explanations and directions tor data use:

In the.area of community-level economic adjust-ment to major changes in Defense programs, thePresident has issued-Executive Order'12049. Thispermits the early identification of the most effectivedevelopment strategy and action plan, early formula-tion of a preliminary reuse plan for any potentialsurplus propeqy, and a forecast of the necessaryadjustment refources prior to potential realignmentdecisions

The President's Economic Adjustment Committeecompleted several effective rural communityeconomic adjustment programs in 1978, includingthose in:

Chippeyva County, Mich., where the closure ofKincheloe AFB near Sault Ste. Marie in the UpperOeninsula affected a region Ovith existing substantial'Ind persistent unemploynrnt (1977 unemploymentrate of 18 percent). Chippewa Covnty and Sault Ste.Marie have converted the former air base to a newregional airport capable of handling large commercial

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jets. The community has attracted siX new firms and300 civilian jobs to the former base. The ttate hasalso established a 625-inmate prison (Kimross) at the ,former base using available barracks facilities, creatging another 250 fobs. All of the buildings and facili-ties at the former bese have been fully reused. Theregion has generally offset the economic dislocationwithin an 18-month period.

Langdon, N. Dak., wherethe closure of theNation's single anti-ballistip missile defente system

Pact on ihe rural areas in gave lierand Pembena Co les, N. Dak. But the.'communitieshave been successfu in the reuse of the former ABMsupport complex fgr a Young Adult ConservationCorps facility serving the entire State of NorthDakota. There are currently 35 civilian employees and250 young adult enrollees at the Langdon site.Through the cooperation of USDA, the Deportment of-4-her-Ar-my-was also able to reduce the communities'indebtedness for sewer and water services7resultingfrom the ABM closuifi,

Big Spring, Tax., Where Big Spring and H oward ,County were able to secure effeetive civilian reuse ofthe former Webb AFB in record time. Big Spring had24 firms on the former base with over poo hewemployees as of early 1979. A minimum securityprispn is also being established at the base. Totalcivilian employment, retail sales, and bank depositshave set new records in Big Spr,i.ng.

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. Photo credits: Appalachian Regional Commissionrages 2, 14, 27, 30, 59.