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Agricultural industry

USDA's Rural Development: Delivering Vital Programs and Services to Rural America

Strategic Insights

— 2 min read

The House Agriculture Subcommittee on Commodity Markets, Digital Assets, and Rural Development held a hearing in September 2025 to examine the role of USDA's Rural Development (RD) in delivering vital programs and services to rural America. Bette Brand, CEO of Strategic Consulting LLC, testified on behalf of the subcommittee, highlighting the significant impact of RD's programs on rural communities. With a portfolio of over $200 billion in loans, loan guarantees, and grants, RD has a critical role in strengthening communities of fewer than 50,000 people.

Key Takeaways:

  • RD manages over $200 billion in loans, loan guarantees, and grants, delivering over $40 billion annually to rural communities.
  • The B&I-CARES Act program, deployed during the COVID pandemic, ensured that rural businesses received urgently needed capital while protecting program integrity.
  • The Food Supply Chain Program, Timber Production Expansion Guaranteed Loan Program, and other initiatives aim to support rural America.
  • RD's Guaranteed Loan Programs, such as Business & Industry (B&I) and Community Facilities (CFP), provide critical infrastructure and support to rural businesses and communities.
  • Between 2005 and 2023, 146 rural hospitals closed or stopped providing acute inpatient care, highlighting the need for emergency services and facilities.
  • Rural Energy for America Program (REAP) funds renewable energy and efficiency projects for farms and small businesses, often contributing to the overall success of a B&I project.
  • RD Grant Programs, such as Value-Added Producer Grants (VAPG), Rural Innovation Stronger Economy (RISE) Grants, and Cooperative Development Grants, provide essential support to farmers, small businesses, and communities.
  • RD's Business Development Assistance programs, including Rural Microentrepreneur Assistance Program (RMAP) and Rural Business Investment Program (RBIP), offer microloans and venture capital investments to support start-ups and small businesses in rural areas.
  • The OneRD Rule, introduced in 2020, streamlined processes across guaranteed loan programs, improved efficiency, and enhanced customer service.

Statistics:

  • Between 2014 and 2022, B&I created 757,800 jobs in rural communities, with each job costing the federal government $438 to create.
  • Counties that utilized the B&I program saw employment increases in the short and long term.
  • Counties that received B&I investment saw a higher increase in average earnings per worker for nine consecutive years after initial investment than similar counties that did not receive investment.
  • A 1% increase in B&I investment results in a 0.55% increase in state sales tax revenue.
  • The B&I program has seen significant increases in program levels, from $1.3 billion in 2016 to $2.2 billion in 2024, with near-complete use of budget authority in 2023 and 2024.
  • In Fiscal year 2025, the B&I program earned its highest proposed budget appropriation in program history ($3.5 billion) while holding its second-lowest subsidy rate (0.02%).

Sources:

  • Testimony by Bette Brand, CEO of Strategic Consulting LLC, House Agriculture Subcommittee on Commodity Markets, Digital Assets, and Rural Development hearing, September 18, 2025.
  • USDA's Rural Development website.
  • National Rural Lenders Association report on the economic benefits of the Rural Development's Business and Industry (B&I) Guaranteed loan Program.
  • Farm Credit System publications.
  • U.S. Department of Agriculture publications.
  • House Agriculture Committee's Farm Bill.
  • SBA 504 and 7A programs.
  • Rural Development's OneRD Rule.

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