Investment banks on Wall Street have been bailed out with billions of federal dollars. Funds have also been requested and discussed with various other segments of corporate America, as well as state governments, schools, as well as to indemnify mortgage bankers against falling real estate values. But have any funds been earmarked for agriculture?

Farmers should not expect a check in the mailbox. However, more than $27 billion will be allocated for food and agriculture, out of the $825 billion economic stabilization plan being developed by the government to restart the US economy. The use of the funds are detailed in a new Congressional Research Service report distributed to Members of Congress in preparation for a vote in coming days. As of January 27, the report had not yet appeared on the CRS website.

$27 billion represents 3.3% of the total economic stabilization plan, slightly more than the USDA portion of the federal budget, but more than $21 billion will be used for nutrition assistance and about 92% of those nutrition funds will be for the Supplemental Nutrition Assistance Program, which was formerly the food stamp program. Other nutrition funds will be allocated to after school feeding programs, senior citizens, emergency food assistance and the WIC program for women, infants and children.

While many of those nutrition funds will be distributed in urban areas, more rural areas of the US will see the bulk of the other funds from the $21 billion; specifically, rural development and conservation.

The CRS report indicates the administration is proposing $5.125 billion for rural development and infrastructure improvements over a two year period to fund grants and loans. That is double the annual USDA appropriation, and with local matching funds, raises the local impact to nearly $35 billion.
1. The rural facilities program would receive $200 million for public safety, libraries, education, community centers, day care, and rural medical clinics that will begin $1.2 billion in loan and grant applications already pending.
2. Another $500 million will be distributed to guarantee loans for rural housing, which will benefit low income individuals to purchase modest homes in rural areas or to upgrade similar homes with water and septic systems.
3. Rural water and waste water programs will receive $1.5 billion to provide community drinking water systems and waste water treatment plants, which is double the annual USDA appropriation.
4. $100 million will be appropriated to spur $2 billion in loans and grants to rural businesses which have been hampered with tight credit.
5. The stimulus bill will provide $2.8 billion for loans and grants to expand broadband Internet service to rural areas. This is more than 20 times the annual appropriation. CRS says funding will be limited to areas without existing broadband service and where more than 75% of residents are in rural areas.
6. Funds will also be allocated to upgrade computers and IT equipment in local FSA offices, upgrade scientific equipment at Agriculture Research Service facilities, and make repairs at USDA buildings in Washington, D.C.

Conservation programs would receive $400 million from the economic stimulus bill. CRS says $350 million would fund watershed projects, flood prevention projects, floodplain easement purchases, and for dam rehabilitation.
1. Watershed and flood prevention projects would receive $175 million. Projects must be planned and contracted by September of 2010, but USDA has over 300 unfunded, but approved, projects ready to start.
2. Floodplain easements would also receive $175 million in funding to allow NRCS to obtain full authority to restore and enhance floodplain functions. There is currently an estimated $250 million list of projects in 17 states that already meet the criteria, but the priority will be on those projects that can begin immediately.
3. Watershed rehabilitation would get $50 million to provide technical and financial assistance to rehabilitation aging dams. 775 dams are on the list, which will grow to more than 4,300 by 2015.

Summary:
The economic stimulus bill pending in Congress does not overlook agriculture, but allocates 78% of the funding to nutrition programs, including food stamps. The balance is designated for rural development, such as Internet broadband service, rural water and water treatment systems, and other infrastructure improvements. Funds are also included in the $850 billion package for conservation that includes watershed, dam, and floodplain projects.