WASHINGTON, DC (RFD NEWS) — USDA reported last week that rural development investment is used most heavily in farming-dependent counties, connecting farm communities with housing, utilities, business financing, and essential services. The Economic Research Service reviewed Rural Development program obligations from 2000 through 2024.
Farm-dependent nonmetropolitan counties recorded the highest participation, with per-person investment rising from $3,741 in 2000-2011 to $4,693 in 2012-2024. The Southeast received the largest overall share of obligations, while the Rocky Mountain region led on a rural per-person basis.
Counties receiving the highest per-person investment averaged 39.9 percent real income growth over the study period, compared with 31.8 percent in the lowest-investment group. USDA cautions that the comparison shows an association, not proof that the funding alone caused higher growth.
Single-family housing accounted for 55 percent of obligations, and higher participation was associated with higher homeownership. Most support came through loans: 57 percent through guarantees and 33 percent through direct loans, while grants accounted for 10 percent.
For producers, rural housing, water, power, broadband, health care, and business capacity influence whether workers and families can remain in agricultural communities.
Farm-Level Takeaway: Rural development investment supports the housing, services, and infrastructure farm communities need to retain workers and remain viable.
Tony St. James, RFD News Markets Specialist
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