USDA Links Rural Investment With Stronger County Growth

The report highlighted the role rural development programs play in supporting housing, infrastructure and essential services.

clifton-tn-antique-district_By-Austin-via-Adobe-Stock.png

The antique district in Clifton, Tennessee, was accredited by the Tennessee Main Street program in 2021 after their participation in the project. (Photo by Austin via Adobe Stock)

Photo by Austin via Adobe Stock

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
Related Stories
Brooke Rollins meets with Pennsylvania farmers as pressure mounts on the Senate to advance the Farm Bill and additional aid for producers.
Despite tighter supplies, U.S. wheat exports continue trending higher as international buyers seek consistent quality and reliable service.
Higher placements lifted feedlot inventories, but slower marketings point to continued tightness in finished cattle movement.
Tight cattle supplies should keep beef prices supported, while dairy, pork, and poultry are poised for greater production growth.
Grain movement remains active, but high ocean freight and diesel costs continue to pressure export logistics.
Trade officials discussed export growth, biofuel opportunities and market access during the National Restaurant Association Show.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Drought and Planting Shape Weekly Crop Condition Recap
Drought remains a major risk, with the ERS reporting that 98 percent of the U.S. cotton production area was affected by drought in early May.
China remains critical to U.S. farm exports, but Brazil’s growing market share keeps pressure on U.S. soybean demand.
Early wheat harvest is moving, but rain, drought stress, and disease pressure will determine yield and quality.
China’s pledge is supportive, but producers need confirmed sales and shipments before counting it as stronger export demand.
Higher input costs and tighter cash flow are keeping pressure on farm income, credit needs, and capital spending.