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Congress eyeing rural business development

By TIM ALEXANDER
Illinois Correspondent

MACOMB, Ill. — Fresh from a trip to Capitol Hill where he testified in front of the U.S. House Subcommittee on Rural Development, Biotechnology, Specialty Crops and Foreign Agriculture, Dr. Timothy Collins is encouraged by Congress’ interest in small business development in rural America.

“I think we received a positive response to the suggestions we offered to the committee, including the creation of programs to promote the creation of eco-industrial parks for renewable energy projects based on both wind and biofuels,” said Collins, Illinois Institute for Rural Affairs (IIRA) assistant director, after attending the Oct. 21 hearing at the request of the subcommittee’s chairman, Rep. Mike McIntyre (D-N.C.).

McIntyre wanted a report on how the USDA is working with partners such as the IIRA to expand entrepreneurship and business development in rural areas. The subcommittee heard testimony from the administrator of USDA’s Rural Business and Cooperative Programs and from Community Development Corporations, in addition to Collins and representatives of other organizations focused on rural  development.

“Using federal government programs to incentivize business innovation and create power present in our rural communities is a win-win situation,” said McIntyre, in a statement prepared after the meeting. “Communities win through the creation of local jobs, lower unemployment and higher levels of economic growth.”
In addition to exploring rural eco-industrial parks for renewable energy facilities, Collins also recommended using USDA grant money to encourage and promote “green” small business entrepreneurship.

“It’s what we call ‘earth-trepreneurship,’” said Collins. “Part of our philosophy and our work in cooperative development has been working with communities to get into the green economy through ethanol, and also through biomass.

“We have helped set up some ethanol production cooperatives and we are currently working with communities in researching biomass. These two recommendations allow tremendous opportunity to link agriculture with small business development.”

After working with Illinois developers and farmers to build and operate ethanol facilities and wind farms for seven years, Collins said the IIRA is now setting its sights on promoting the construction of plants that convert biomass into fuel.

“We find biomass a very exciting area to be working in,” he added. “There is more understanding (now) about chemistry of converting various products into fuel sources. We see some real opportunities out there that are important to our farmers and our small towns.”
Collins offered McIntyre an update on how the IIRA has been utilizing USDA funding for its Rural Community Development Initiative, reporting the agency has been working hand-in-hand with small business operators in the river towns of Savannah and Havana, and in rural Stark County, to help them communicate and market their goods and services more effectively.

Now that the grant for that program is winding down, Collins testified more small businesses in Illinois are showing interest.
Collins said the USDA grant to IIRA has allowed the agency to help a restaurant owner use Internet resources to attract more Chicago-bound traffic to his eatery, an antique dealer to establish a regional advertising and promotion network with other area antique sellers and a rural tourism group to develop a more useful community website, among other examples.

“We like to say we help raise all boats in the community,” said Collins, “and one of the hallmarks of IIRA is continuing support for the communities we work in.”

Through the IIRA’s signature MAPPING (Management and Planning Programs Involving Nonmetropolitan Groups) program, “we help communities figure out where they are, where they want to go and how they can get there. It’s about helping them develop their own resources.”

The IIRA also helps fledgling small business entrepreneurs connect with experts in areas such as digital media, food-based businesses and various “micro-enterprises,” according to Collins. “We can provide technical information and try to link business people with the support they need to move forward,” he explained.
Following the hearing, McIntyre expressed frustration that some rural development programs mandated by the 2008 farm bill have still not been enacted.

“Unemployment is nearing double digits nationally, and in some states has been a reality for many months. It is disappointing that, while these programs might have been useful during the tremendous economic downturn this past fiscal year, we are now 16 months past enactment of the farm bill and still some program award dates are not expected until well after the beginning of 2010,” McIntyre stated.

“We urge USDA to redouble their efforts to get these programs under way.”

Written testimony provided by all of the witnesses at the hearing is available at www.agriculture.house.gov/hearings

11/4/2009