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2011 Rural Business-Cooperative Service Annual Report BACKING THE BUSINESS OF RURAL AMERICA

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2011 Rural Business-Cooperative Service Annual Report

BACKING THE BUSINESS OF RURAL AMERICA

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

MESSAGE FROM THE ADMINISTRATOR As Administrator for Rural Business-Cooperative Service (RBS), I am proud to present the 2011 Annual Report, which highlights the Agency’s outstanding accomplishments. These successes are possible thanks to the hard work and dedication of the U.S. Department of Agriculture’s (USDA) National and State office staffs and our partners throughout rural America who help us deliver these important programs. In collaboration with lenders, local governments, Tribal groups, and intermediaries, RBS provides grants, loans, loan guarantees, and loan and grant combination programs to small businesses, farmers, and ranchers who create quality jobs in rural communities. RBS also promoted President Obama‘s national energy policy through its renewable energy and energy efficiency programs. Fiscal Year 2011 was an extraordinary year for RBS. The Agency successfully delivered $1.9 billion in funding, which had a direct impact on the economic growth and productivity in rural America. RBS programs also helped more than 15,500 businesses create or save approximately 67,000 jobs. In 2011, RBS loan and grant programs accomplished the following:

1. $1.4 billion in loan guarantees through the Business and Industry Guaranteed Loan Program 2. Over $96.5 million in loans and grants through the Rural Energy for America Program 3. $136 million in payments to producers through the Advanced Biofuel Payment Program 4. Over $40 million in funding through the Value-Added Producer Grant Program

Together, with our 47 Rural Development State Offices, government agencies, commercial lenders, and partnering organizations, USDA remains committed to building a secure future for the communities of rural America. Sincerely,

Judith A. Canales

Administrator Rural Business-Cooperative Service

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

TABLE OF CONTENT

Rural Business-Cooperative Service Overview 2

Business and Industry Division 5

Business and Industry Guaranteed Loan Program 5

Specialty Programs Division 11

Intermediary Relending Program 12

Rural Business Enterprise Grant Program 15

Rural Economic Development Loan and Grant Program 20

Rural Microentrepreneur Assistance Program 26

Energy Division 33

Section 9007 – Rural Energy for America Program 35

Section 9005 – Advanced Biofuel Payment Program 41

Section 9003 – Biorefinery Assistance Program 43

Cooperative Programs 44

Grant Programs 46

Rural Business Opportunity Grant Program 47

Value-Added Producer Grant Program 48

Rural Cooperative Development Grant Program 49

Publications 50

Marketing and Research 51

Oversight Resources Coordination Staff 56

USDA Rural Development State and Territory Offices 58

Acronyms 61

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

THRIVING RURAL BUSINESSES LEAD TO THRIVING RURAL

COMMUNITIES

Each day, thousands of people go to work in rural America with USDA Rural Business-Cooperative Service there to back them up. Our vision is a rural America that is a healthy, safe, and prosperous place to live and work.

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

U.S. Department of Agriculture Rural Development

Rural Business-Cooperative Service Office of the Administrator

Deputy Administrator Business Programs

Business and Industry Division

Loan Processing

Loan Servicing

Energy Division

Technology Branch

Section 9003 Biorefinery Assistance Program

Section 9004 Repowering Assistance Program

Programs Branch

Section 9005 Advanced

Biofuel Repayment

Program

Section 9007 Rural Energy for

America Program (REAP)

Speciality Programs Division

Special Projects

Programs Branch

Intermediary Relending

Program (IRP)

Rural Business Enterptise Grant

(RBEG)

Rural Economic Development

Loan and Grant (REDLG)

Rural Microentrepreneur Assistance Program

(RMAP)

Deputy Administrator Cooperative Programs

Grant Division

Rural Business Opportunity

Grant (RBOG)

Rural Cooperative

Development Grant (RCDG)

Small Socially-Disadvantaged Producer Grant

(SSDPG)

Value-Added Producer Grant

(VAPG)

1890'S Land Grant

Institutions

Education and Research

Division

Cooperative Statistics

Cooperative Research

Cooperative Education

Technical Assistance

Advisory Staff Oversight Resource Coordination Staff

2

RURAL BUSINESS-COOPERATIVE SERVICE OVERVIEW

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

3

HELPING RURAL BUSINESSES COMPETE IN THE GLOBAL MARKET

Rural Business-Cooperative Service (RBS) assists rural businesses with start up and expansion. We deliver our grant, loan, loan guarantees, and loan/grant combination programs through a network of partners. These partners include community banks, commercial lenders, business and economic development organizations, community foundations, Tribal groups, local organizations, State and Federal agencies, and public and private investors. These partnerships help RBS leverage private and public funds to promote local and regional business development and provide access to affordable credit in rural areas. RBS programs serve farmers, ranchers, businesses, nonprofits, cooperatives, Tribes, and local governments so they can support and grow the nation’s rural economy. In Fiscal Year (FY) 2011, many new and exciting changes occurred throughout our programs. Implementing and creating these new strategies increased the effectiveness of our Agency, resulting in a very productive year.

SEVEN STRATEGIES FOR ECONOMIC DEVELOPMENT

• Strategic Partners

• Capital Markets

• Regional Food Systems

• Regional Collaboration

• Community Building

• Alternative Energy

• Broadband and Continuous Business Creation

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

BUSINESS PROGRAMS 4 Program Overview

BUSINESS PROGRAM NUMBER OF LOANS

AND GRANTS

DOLLARS OBLIGATED

JOBS CREATED

AND SAVED

BUSINESSES ASSISTED

Business and Industry (B&I) Guaranteed Loan Program 511 1,387,386,344 27,806 941

Intermediary Relending Program (IRP) 57 19,087,000 14,601 649

Rural Business Enterprise Grants (RBEG) 585 38,785,202 13,265 10,399

Rural Economic Development Loans (REDL) 47 29,412,012 4,099 163

Rural Economic Development Grants (REDG) 23 6,257,333 2,974 231

Rural Microentrepreneur Assistance Program Loans (RMAP) 38 14,612,500 1,186 212

Rural Microentrepreneur Assistance Program Grants (RMAP) 38 3,131,922 1,064 153

Rural Microentrepreneur Assistance Program Technical Assistance - Grants (RMAP)

11 410,500 54 127

Section 9007 - Rural Energy for America Program - Loans (REAP) 49 34,072,816 263 545

Section 9007 - Rural Energy for America Program - Grants (REAP) 1,949 62,439,498 1,610 2,764

Section 9003 - Biorefinery Assistance Program 4 255,675,000 236 4

Section 9005 - Advanced Biofuel Payment Program 457 136,125,466 Direct Payments 174

TOTAL 3,769 $1,987,395,593 67,158 16,362

Grand opening of the Hampton Inn Hotel in Deming, New Mexico funded by a $5 million USDA Rural Development Business and Industry (B&I) Guaranteed loan

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

BUSINESS PROGRAMS 5 Business and Industry Guaranteed Loan Program

BUSINESS AND INDUSTRY (B&I) GUARANTEED LOAN PROGRAM

The Business and Industry Programs works with rural businesses and commercial lenders to improve the economic conditions in rural communities. We do this by providing loan guarantees for projects that create and save jobs and promote clean rural environments. The Business and Industry Guaranteed Loan Program (B&I) allows lenders to offer borrowers lower, fixed, or variable interest rates. These fully amortized loans have longer repayment terms, no renewal requirements, and no balloon payments. The program provides guarantees up to 90 percent of a loan made by commercial lenders. Borrowers use B&I loans for working capital, machin-ery, equipment, buildings, real estate, and certain types of debt financing. The program also helps lenders boost their legal lending limit and expand their lending portfolio through the sale of the guaranteed and non-guaranteed portions of loans in the secondary market.

Business and Cooperative Programs administers the B&I Guaranteed Loan Program through its 47 USDA Rural Development State Offices located throughout the United States.

Borrowers use B&I loans for working capital, machinery and equipment, real estate, and certain types of debt financing

B&I GUARANTEED LOAN PROGRAM FACTS

WHO MAY BORROW A borrower may be a cooperative organization, corporation, partnership, or other legal entity organized and operated on a profit or nonprofit basis. A borrower can also be an Indian tribe on a Federal or State reservation, federally recognized Tribal groups, public body, or individual. A borrower must be engaged in, or proposing to engage in, a business that will do any one of the following:

• Provide employment • Improve the economic or environmental climate • Promote the conservation, development, and use of water for aquaculture • Reduce reliance on nonrenewable energy resources by encouraging the development and construction

of solar energy systems and other renewable energy systems A borrower must be a citizen of the United States (U.S.) or a legally admitted, permanent resident. Corporations or other nonpublic body organization-type borrowers must be at least 51 percent owned by persons who are citizens of the U.S. or reside in the U.S. after being legally admitted for permanent residence. B&I loans are normally available in rural areas, which include all areas other than cities or towns of more than 50,000 people and the contiguous and adjacent urbanized area of such cities or towns. HOW TO APPLY Completed applications prepared by the borrower and lender should be sent to the U.S. Department of Agriculture Rural Development State Office (see pages 58 – 60 of this report).

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

BUSINESS AND INDUSTRY DIVISION 6 Business and Industry Guaranteed Loan Program

SUCCESS STORIES

B&I LOAN PROGRAM HELPS TRUCKING COMPANY SAVE JOBS

OUTLINE OF NEED: Willamette Community Bank worked with RAM Trucking of Brownsville, Oregon to structure the company’s new loan using a B&I loan guarantee. The lender said, “The B&I program and its Recovery Act injection of funding is a vital tool for financing rural businesses and creating and retaining jobs. The B&I loan guarantee allows us to offer our clients so much more during these difficult times.” HOW RURAL DEVELOPMENT HELPED: Thanks to the B&I program, RAM Trucking received a 90 percent loan guarantee for $450,000. RESULTS: The B&I loan guarantee helped RAM Trucking diversify their services, recruit clients from a variety of industries, upgrade their equipment, and created/saved 50 full-time jobs. Today, their trucks haul everything from chicken feed to heavy industrial machinery.

Dale Latiner and Dale Middlestadt, owners of

RAM Trucking of Brownsville, Oregon

B&I LOAN HELPS LOCAL GROCERY STORE RELOCATE TO FOOD DESERT

OUTLINE OF NEED: The south side of Winnsboro, Louisiana is a food desert—an area that does not have access to fresh fruits and vegetables, affordable food choices, supermarkets, or food transportation. The city is also located in a hurricane-impacted area that has persistent poverty and high unemployment. Recently, a local business owner developed plans to build a new grocery store in the area. The construction project and store would create jobs and generate income for families in the surrounding areas. HOW RURAL DEVELOPMENT HELPED: USDA Rural Development provided a $5 million B&I loan guarantee to Ford Holdings, LLC, which the company used to build a new 19,500 square foot grocery store, purchase equipment, inventory, and refinance the debt on the facilities. RESULTS: The B&I loan guarantee helped Ford’s Food Center create 15 new jobs. Today, the grocery store provides nutritional, fresh food to local residents and those living in outlying rural areas.

This location was a perfect fit for Mr. Ford to build, based on its closeness to a post office, housing development, school, and other businesses that will be able to benefit from the locality of the grocery store and competitive price savings for consumers.

Quinon and Gretchen Ford, owners of Ford’s Food Center in Winnsboro, Louisiana

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

BUSINESS AND INDUSTRY DIVISION 7 Business and Industry Guaranteed Loan Program

B&I GUARANTEED LOAN PROGRAM BENEFITS LENDERS

The B&I Guaranteed Loan Program is a “win-win” for rural American businesses and banks that serve rural communities. The program provides loan guarantees to commercial lenders, increases their legal lending limits, and expands their lending portfolio. With increased lending capabilities, banks can provide

more loans and larger loans. The program also benefits lenders through the sale of the guaranteed and non-guaranteed portions of the loans on the secondary market. The B&I program provides protection against loan losses, which can encourage lenders to extend credit to borrowers so they can establish, expand, or modernize their rural businesses. Most loan guarantees issued by Rural Develop-ment are for 80 to 90 percent of the amount of the loan. There are four important reasons investors choose to work with Rural Development. First, the full faith and credit of the U.S. Treasury backs each loan guarantee. Second, many lenders consider the B&I program to be a relatively risk-free way to expand portfolios. Third, the B&I Guaranteed Loan Program helps lenders achieve Commun-ity Reinvestment Act requirements. Finally, the partnership between Rural Development and private lenders helps improve the economic health of rural communities by creating opportunities for investment.

B&I LENDERS PORTFOLIO AS OF SEPTEMBER 30, 2011

Lender Dollar Amount Loans

Bank of Montgomery $57,350,000 8

Citizens National Bank $33,750,435 6

Bank of OK $25,000,000 1

State Bank of Davis $23,750,000 2

Metro City Bank $22,860,000 9

West Town Savings $20,970,000 9

Ag Credit ACA $19,546,650 5

Fifth Third Bank $17,745,000 5

Umpqua Bank $17,541,000 5

Servis First Bank $17,500,000 3

Top 10 Lenders in 2011

B&I Caseloads

Number of

Lenders

Total Caseload

1 1071 1071 2 321 642

03 – 05 238 852 06 – 10 63 470 11 – 20 22 311 21 – 50 11 317

51 – 100 1 53 101 – 200 1 130

Total 1728 3846

B&I Active Lender 2008-2011

Year Number of Lenders 2008 1192 2009 1256 2010 1585 2011 1728

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

BUSINESS AND INDUSTRY DIVISION 8 Business and Industry Guaranteed Loan Program

SERVICING ACTIONS THAT DECREASE THE B&I LOAN PROGRAM BORROWER DELINQUENCY RATE

Thanks to the concentrated efforts of the USDA’s Rural Development National and State Office staffs, the B&I Guaranteed Loan Program portfolio delinquency rate has been under 9.5 percent for the past five years. Specific steps that helped reduce the delinquency rate are as follows:

1. Requiring a higher quality of credit from lenders 2. Continuously training for Agency staff and lenders to ensure effective and efficient program delivery 3. Using a proactive rather than a reactive approach to problem and/or delinquent borrowers when necessary

B&I GUARANTEED LOAN DELINQUENCY RATE - 20 YEAR PERIOD Year Percentage Year Percentage 1991 15.8 2002 10.29 1992 12.8 2003 8.46 1993 10.5 2004 7.71 1994 10.0 2005 6.72 1995 8.0 2006 6.05 1996 8.0 2007 8.28 1997 6.8 2008 7.42 1998 5.8 2009 9.46 1999 6.8 2010 9.44 2000 6.1 2011 7.59 2001 6.6 - -

15.8

12.8

10.5

10 8.0 8.0 6.8

5.8

6.8

6.1

6.6

10.29

8.46

7.71 6.72

6.05

8.28

7.42

9.46 9.44

7.59

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Business and Industry Borrower Delinquency Rate - 20 Year Period

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

BUSINESS AND INDUSTRY DIVISION 9 Business and Industry Guaranteed Loan Program

B&I GUARANTEED LOAN - 3 YEAR ACTIVITY 2009 2010 2011

States Amount Number of Loans Amount Number of Loans Amount Number of Loans Alabama 2,400,000 1 75,448,184 22 36,759,800 9 Alaska 24,268,750 9 26,917,611 19 3,506,478 5 Arizona 18,832,680 7 28,719,893 11 19,638,714 8 Arkansas 1,350,000 2 39,304,000 10 30,084,500 10 California 95,816,320 47 173,100,011 70 44,396,991 31 Colorado 10,566,500 4 30,849,800 9 13,883,500 5 Connecticut 2,450,000 3 19,000,000 4 6,380,000 3 Delaware 2,153,627 2 850,000 1 420,000 1 Florida 39,366,700 10 79,745,464 21 28,821,327 9 Georgia 58,034,035 16 155,379,004 45 82,394,000 22 Hawaii 9,913,000 2 26,672,000 3 4,400,000 2 Idaho 35,700,339 31 54,127,517 33 28,004,675 15 Illinois 24,577,750 14 68,385,013 23 36,851,600 7 Indiana 14,350,693 6 38,549,362 18 29,746,100 9 Iowa 79,094,125 20 110,580,331 41 24,133,140 10 Kansas 7,370,000 5 56,724,900 19 18,004,900 12 Kentucky 17,266,000 5 87,528,177 21 41,170,000 6 Louisiana 46,952,500 11 115,108,700 25 126,976,800 20 Maine 4,965,000 6 8,322,800 5 14,920,245 8 Maryland 1,305,000 3 19,988,385 9 17,413,100 5 Massachusetts 14,562,500 4 16,427,250 7 18,330,000 4 Michigan 11,961,900 7 135,856,375 54 36,898,080 15 Minnesota 19,365,000 6 38,155,133 17 11,375,000 9 Mississippi 4,000,000 1 51,538,474 14 29,998,000 5 Missouri 36,655,000 16 86,415,000 41 40,453,000 29 Montana 19,361,000 5 31,996,698 12 14,367,000 3 Nebraska 11,993,528 19 68,743,969 21 17,188,999 12 Nevada - - 21,563,800 8 9,058,500 4 New Hampshire 4,500,000 1 14,079,920 5 2,800,000 2 New Jersey - - 11,100,000 2 9,440,000 4 New Mexico 10,479,120 6 9,500,876 5 10,692,000 3 New York 26,750,675 15 123,912,317 52 35,532,302 18 North Carolina 32,993,800 17 94,518,212 50 46,352,000 24 North Dakota 18,387,000 7 22,178,200 21 22,769,949 11 Ohio 44,549,721 16 84,519,210 29 48,365,150 21 Oklahoma 66,325,000 17 101,689,883 25 44,209,950 14 Oregon 35,277,116 20 63,059,617 30 43,845,108 25 Pennsylvania 54,113,900 16 81,121,629 22 23,496,000 8 Puerto Rico - - 14,779,134 5 9,836,250 5 Rhode Island - - 1,766,000 1 - - South Carolina 47,021,496 22 62,974,987 24 42,595,000 17 South Dakota 6,638,250 10 4,608,160 7 8,838,000 4 Tennessee 16,922,584 8 102,346,845 30 57,827,304 12 Texas 50,599,965 16 134,259,920 27 43,000,281 14 Utah 8,595,265 6 11,598,375 6 14,495,301 8 Vermont 1,178,260 2 16,471,940 4 13,336,000 4 Virgin Islands 12,450,000 2 13,750,000 2 4,750,000 1 Virginia 12,170,500 6 47,384,129 22 30,018,000 7 Washington 20,464,500 8 47,497,953 15 21,396,000 13 West Virginia 16,689,000 10 46,659,700 16 32,472,300 9 Western Pacific 5,000,000 1 6,512,500 3 - - Wisconsin 133,412,059 32 145,847,033 39 35,089,000 8 Wyoming 5,468,000 6 9,731,000 5 656,000 1 Totals $1,244,618,158 506 $2,937,865,391 1,030 $1,387,386,344 511

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

BUSINESS AND INDUSTRY DIVISION 10 Business and Industry Guaranteed Loan Program

U.S. Dollars $1K - $25M

>$25M -$50M >$50M - $75M >$75M – 200M

Business and Industry Guaranteed Loan Program FY 2011 Funding

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

SPECIALTY PROGRAMS DIVISION 11

SPECIALTY PROGRAMS DIVISION The Specialty Programs Division (SPD) supports rural communities by improving economic opportunities, community infrastructure, environmental health, and sustainable agricultural production. SPD provides loans and grants for technical assistance, business development studies, educational material development, and other economic and business development projects. SPD offers several specialized programs that provide smaller-scale financial support to a variety of initiatives through Intermediaries, such as utilities or telecom providers. Specialty Programs Division offers the following grant and loan programs:

• Intermediary Relending Program (IRP)

• Rural Business Enterprise Grant (RBEG)

• Rural Economic Development Loan (REDLoan)

• Rural Economic Development Grant (REDGrant)

• Rural Microentrepreneur Assistance Program (RMAP) Grants

• Rural Microentrepreneur Assistance Program (RMAP) Loans

A Kentucky manufacturer builds energy-efficient single family homes thanks to a USDA Rural Business Enterprise Grant

APPLICATIONS 2010 2011

Specialty Programs Year-End Applications Pending Dollar Amounts Number of

Applications Dollar Amount

Number of Applications

Intermediary Relending Program (IRP) 31,048,030 47 11,250,000 18

Rural Business Enterprise Grant (RBEG) 64,834,062 223 37,968,268 329

Rural Economic Development Loan (REDL) 6,703,472 13 1,944,800 7

Rural Economic Development Grant (REDG) 1,148,000 4 5,238,850 12

Rural Microentrepreneur Assistance Program (RMAP) Grants 900,439 9 3,308,081 29

Rural Microentrepreneur Assistance Program (RMAP) Loans - - 1,620,000 4

Total $104,634,003 296 $61,329,999 399

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

SPECIALTY PROGRAMS DIVISION 12 Intermediary Relending Program

INTERMEDIARY RELENDING PROGRAM The Intermediary Relending Program (IRP) helps rural communities alleviate poverty, increase economic activity, and increase employment. Under the IRP program, USDA Rural Development provides loans to local organizations (Intermediaries) for the establishment of revolving loan funds. The intermediary uses the revolving loan funds to finance business and economic development activities that will create and retain jobs in disadvantaged and remote communities. USDA Rural Development encourages Intermediaries to collaborate with state, regional, public, and private organizations that provide complimentary resources. In FY 2011, IRP issued over $19 million in loans, helped create/save almost 15,000 jobs, and assisted 649 small rural businesses, farmers, and ranchers.

Laurel County, Kentucky’s 9,600 square foot Business Innovation and Growth Center funded by a USDA Rural Development grant

SUCCESS STORIES

IRP LOANS ASSIST CAPE COD BUSINESSES IN NEED OF FUNDING

OUTLINE OF NEED: For several years, the Cape Cod business community has felt the effects of a distressed economy and heightened credit restrictions. During this period, the area’s small businesses needed credit for its existing and startup projects. HOW RURAL DEVELOPMENT HELPED: Coastal Community Capital (CCC), a community economic development organization, received $750,000 in assistance from USDA Rural Development. The funding provided capital for economic development, small businesses expansion, start up projects, and job creation in Cape Cod and the South Shore regions. THE RESULTS: CCC’s funds provided low interest rate loans and gap financing to several small businesses. In addition to the loans, CCC provided training opportunities and technical assistance.

FAST FACTS: • Counties served: Dukes, Nantucket, Barnstable,

Plymouth Bristol, and Norfolk • Total businesses assisted: 62 • Jobs created: 232

IRP recipient Mac’s Seafood Market and Restaurant located in Wellfleet, Massachusetts

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

SPECIALTY PROGRAMS DIVISION 13 Intermediary Relending Program

INTERMEDIARY RELENDING LOAN PROGRAM - FY 2009 – FY 2011 States 2009 2010 2011 Amount Number of Loans Amount Number of Loans Amount Number of Loans Alabama 500,000 1 - - 216,000 1 Alaska - - - - 159,000 1 Arizona - - - - 183,000 1 Arkansas 400,000 1 - - 193,000 1 California 3,750,000 7 2,140,000 5 970,000 2 Colorado 750,000 1 812,296 3 175,000 1 Connecticut - - 500,000 1 - - Delaware 500,000 1 - - 156,000 1 Florida - - - - 218,000 1 Georgia 750,000 1 - - 589,000 2 Hawaii - - - - - - Idaho 300,000 1 - - 166,000 1 Illinois 2,500,000 3 1,000,000 1 505,000 2 Indiana - - - - - - Iowa 728,219 2 1,128,000 3 183,000 1 Kansas - - - - 172,000 1 Kentucky 750,000 1 750,000 1 968,000 2 Louisiana - - - - 750,000 1 Maine 750,000 1 - - 174,000 1 Massachusetts 750,000 1 - - 161,000 1 Maryland 1,500,000 2 - - 169,000 1 Michigan - - - - 200,000 1 Minnesota - - 750,000 1 1,446,000 3 Mississippi - - - - - - Missouri 500,000 1 675,000 2 - - Montana 1,335,000 3 2,000,000 3 165,000 1 Nebraska - - 750,000 1 900,000 2 Nevada - - 700,000 1 - - New Hampshire - - 1,000,000 2 1,913,000 4 New Jersey 750,000 1 - - - - New Mexico - - - - 167,000 1 New York 1,050,000 2 2,100,000 3 966,000 2 North Carolina 3,000,000 4 2,416,480 4 - - North Dakota 1,350,000 2 - - 158,000 1 Ohio - - 1,250,000 2 734,000 2 Oklahoma 750,000 1 750,000 1 188,000 1 Oregon 1,050,000 2 - - 677,000 3 Pennsylvania 995,000 2 1,750,000 3 979,000 2 Puerto Rico - - - - 165,000 1 Rhode Island - - - - - - South Carolina 1,828,219 3 1,800,000 3 750,000 1 South Dakota 1,500,000 2 4,500,000 6 1,661,000 3 Tennessee - - 750,000 1 - - Texas 1,500,000 2 750,000 1 998,000 2 Utah - - - - 160,000 1 Vermont 2,500,000 4 1,500,000 2 162,000 1 Virginia - - 500,000 1 207,000 1 Virgin Islands - - - - - - Washington - - 2,750,000 4 184,000 1 W. Pacific Areas 750,000 1 - - - - West Virginia 750,000 1 250,000 1 - - Wisconsin - - 262,296 1 200,000 1 Wyoming - - - - - - Totals $33,536,438 54 $33,534,072 57 $19,087,000 57

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

SPECIALTY PROGRAMS DIVISION 14 Intermediary Relending Program

INTERMEDIARY RELENDING PROGRAM FACTS HOW MUCH CAN INTERMEDIARIES BORROW? An intermediary may borrow up to $2 million under its initial financing and up to $1 million at a time thereafter. The total aggregate cap is $15 million.

WHO IS ELIGIBLE? The following entities are generally eligible to apply for loans from intermediary lenders provided they do not have a delinquent debt with the Federal Government:

• Individual citizens or individuals legally admitted to the U.S. • Businesses located in a rural area with populations of 25,000 or less • Entities that can incur debt, give security, and repay the loan • Corporations, partnerships, LLCs, individuals, non-profit corporations, or public bodies

WHAT PROJECTS ARE ELIGIBLE? Under the IRP, a rural area is any area that is not inside a city with a population of 25,000 or more according to the latest decennial census. Eligible projects include the following:

• Start up costs and working capital • Pollution control and abatement • Transportation Services • Feasibility studies • Hotels, motels, Bed and Breakfast facilities, and convention centers

Intermediary Relending Program – FY 2011 Funding

U.S. Dollars

$0 - $1K $>1K - $500K $>500K - $1M $>1M - $2M

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

SPECIALTY PROGRAMS DIVISION 15 Rural Business Enterprise Grant Program

RURAL BUSINESS ENTERPRISE GRANT PROGRAM The Rural Business Enterprise Grant Program (RBEG) provides grants for rural projects that finance and facilitate development of small and emerging businesses, business incubators, employment, and related adult education programs. To assist with business development, RBEGs fund a broad array of activities. There is no maximum level of grant funding. However, smaller projects receive a higher priority. Generally, grants range from $10,000 up to $100,000. Eligible organizations include rural public entities (towns, communities, State agencies, and authorities), Indian Tribes, or non-profit corporations. U.S. citizens or resident aliens must own at least 51 percent of the outstanding interest in any project.

In FY 2011, the RBEG Program awarded 585 grants totaling $38,785,202 million, helped create/save 13,265 jobs, and assisted 10,399 small and emerging businesses.

Cumberland University’s Culinary Center funded by a Rural Development Rural Business Enterprise Grant

Volunteers help RBEG recipient Umpqua Community Development Corporation (Neighborworks Umpqua) construct a home in rural Oregon

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

SPECIALTY PROGRAMS DIVISION 16 Rural Business Enterprise Grant Program

RURAL BUSINESS ENTERPRISE GRANT PROGRAM - FY 2009 – FY 2011 States 2009 2010 2011

Amount Number of Grants Amount Number of Grants Amount Number of Grants

Alabama 862,540 7 1,186,831 13 1,110,000 11 Alaska 731,023 8 273,837 4 751,000 6 Arizona 668,211 7 721,500 7 372,440 5 Arkansas 1,469,719 9 825,834 6 480,650 5 California 2,789,861 22 1,343,694 14 1,271,000 23 Colorado 366,050 7 411,662 9 368,700 11 Connecticut 212,580 4 256,749 6 223,000 4 Delaware 144,790 4 129,000 3 248,000 6 Florida 765,605 5 1,081,091 7 997,888 6 Georgia 3,155,675 36 1,397,925 17 1,371,999 15 Hawaii 482,668 4 188,056 3 161,000 4 Idaho 301,871 19 373,784 17 337,500 19 Illinois 1,640,384 17 921,955 10 911,000 11 Indiana 594,880 14 923,000 14 910,500 13 Iowa 1,228,549 19 656,250 9 572,800 8 Kansas 551,570 8 612,000 9 452,000 9 Kentucky 2,168,237 9 1,511,000 10 1,092,000 10 Louisiana 1,139,638 9 832,956 5 631,000 4 Maine 3,709,403 19 541,330 7 409,000 7 Maryland 1,657,338 9 312,000 5 1,571,767 7 Massachusetts 466,099 10 236,313 9 263,716 9 Michigan 1,348,670 32 1,371,000 36 1,399,488 37 Minnesota 1,947,589 19 1,171,999 13 771,000 8 Mississippi 779,394 18 1,085,785 13 898,074 12 Missouri 1,349,200 20 1,062,000 23 959,170 25 Montana 393,953 15 306,000 14 427,585 17 Nebraska 747,939 13 522,030 8 828,177 10 Nevada 228,878 8 245,000 8 504,000 8 New Hampshire 760,817 11 276,000 6 277,560 7 New Jersey 261,340 3 246,900 3 167,308 3 New Mexico 1,234,050 5 386,999 4 529,177 10 New York 1,361,530 13 988,150 13 1,383,233 16 North Carolina 1,297,310 19 1,514,000 19 1,465,542 21 North Dakota 667,741 7 259,991 3 281,225 4 Ohio 1,662,829 13 1,345,000 10 1,302,000 13 Oklahoma 1,808,299 10 795,000 7 1,171,686 13 Oregon 1,866,669 37 618,136 42 867,392 32 Pennsylvania 1,111,520 13 1,268,900 14 1,227,102 14 Puerto Rico 836,310 7 566,704 3 609,313 4 Rhode Island 90,010 2 73,000 2 94,000 1 South Carolina 1,748,120 16 1,183,900 14 1,029,500 16 South Dakota 941,780 13 311,000 5 622,327 7 Tennessee 1,751,149 57 1,204,000 46 1,191,000 34 Texas 3,042,310 14 1,739,000 11 1,402,000 10 Utah 334,330 5 287,999 4 505,900 5 Vermont 2,023,677 22 311,257 11 862,483 15 Virginia 1,213,460 15 954,999 10 857,895 9 Virgin Island - - - - - - Washington 971,028 12 626,000 8 734,000 14 West Virginia 1,338,630 10 647,000 5 502,000 7 West Pacific 175,000 4 135,373 2 50,000 1 Wisconsin 1,615,136 18 836,000 10 1,174,721 15 Wyoming 171,560 4 129,925 4 183,384 4 Totals $60,186,919 701 $37,205,814 555 $38,785,202 585

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

SPECIALTY PROGRAMS DIVISION 17 Rural Business Enterprise Grant Program

RURAL BUSINESS ENTERPRISE GRANT PROGRAM FACTS

WHAT TYPES OF PROJECTS ARE ELIGIBLE? The RBEG program is a broad based program that reaches to the core of rural development in a number of ways. Examples of eligible fund use include:

• Acquisition or development of land, easements, or rights of way

• Construction, conversion, and renovation of buildings, plants, machinery, equipment, access streets and roads,

parking areas, and utilities

• Pollution control and abatement

• Capitalization of revolving loan funds including funds that will make loans for start ups and working capital

• Training and technical assistance

• Distance adult learning for job training and advancement

• Rural transportation improvement

• Project planning

Any project funded under the RBEG program should benefit micro and emerging private businesses in rural areas, businesses that will employ 50 or fewer new employees and have less than $1 million in projected gross revenues.

HOW TO APPLY: To apply please contact your local Rural Development State Office (see pages 58 – 60 of this report).

U.S. Dollars $0 – $1K

>$1K - $500K >$500K - $1M >$1M - $2M

Rural Business Enterprise Grant Program – FY 2011 Funding

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

SPECIALTY PROGRAMS DIVISION 18 Rural Business Enterprise Grant Program

SUCCESS STORIES

LOCAL FARMER’S MARKET THRIVES THANKS TO RBEG

THE NEED: If Elizabethtown, North Carolina had a local farmer’s market, area farmers could sell their fresh, locally grown produce to consumers in their communities. HOW RURAL DEVELOPMENT HELPED: Area businesses used a combination Rural Business Enterprise Grant and a Community Facility Grant, to fund Elizabethtown’s local farmer’s market project. THE RESULTS: “This project touches on our ability to provide local food, jobs, and infrastructure, to the community,” says Rossie Bullock, RD North Carolina State Office Area Director. “Not only does It provide a venue for the farmer’s produce, it also enhances the downtown area, which helps to boost the local economy.”

FAST FACTS: • Partners: Cape Fear Farmers Market • Congressional District: NC-7 • Rural Population: 3800

RBEG FUNDS HELPS TECHNICAL COLLEGE PROVIDE TRAINING THE NEED: Truck Drivers are in high demand. However, currently there is a nationwide shortage in this trade. Graduates of Commercial Truck Driving programs get jobs soon after they complete their training. Equipment and vehicles represent a considerable financial investment. At Okefenokee Technical College, located in Waycross, Georgia the existing vehicle did not function well or reflect current industry dimensions. HOW RURAL DEVELOPMENT HELPED: USDA Rural Development provided a $98,000 Rural Business Enterprise Grant (RBEG), through Recovery Act funding, to Okefenokee Technical College to purchase a vehicle. THE RESULTS: In 2011, the College modified the cab section of the vehicle so it could hold an instructor and three student drivers. This modification made it possible for the instructor to train several students at the same time and cutting down on fuel costs. The College also purchased a 53-foot trailer so students could practice turning, backing, and maneuvering the most common type and size trailer used by the trucking industry. “Equipment like this keeps student training on track.” said Donnie Thomas,

Acting USDA Rural Development State Director. “When we invest in education, we are investing in the future.” FAST FACTS: • Investment: $98,000 • Partners: Okefenokee Technical College • Congressional District: GA-01 • Demographics: Serves 6 South Georgia counties • Results: High demand for truck drivers—93 percent

job placement • Supports businesses, over half are small businesses

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

SPECIALTY PROGRAMS DIVISION 19 Rural Business Enterprise Grant Program

TECHNICAL ASSISTANCE FOR RURAL TRANSPORTATION - FY 2011

State Applicant Grant Amount District of Columbia Community Transportation Association of America 499,000 District of Columbia Community Transportation Association of America (Native American) 249,767 Total $748,767

RURAL ECONOMIC AREA PARTNERSHIP FUNDING – FY 2011 State Applicant Grant Amount New York Village of Ellenville 99,999 New York County of Sullivan 186,500 North Dakota Hettinger County Job Development Authority 103,225 Vermont Catamount Film and Arts, Inc. 50,000 Vermont Canaan Border Riders, Inc. 99,000 Vermont Vermont Farm-to-School, Inc. 60,092 Vermont Lyndon State College 66,841 Vermont Northeast Kingdom Travel & Tourism Association 117,500 Vermont Vermont Wood Net, Inc. 13,000 Vermont Newport City Renaissance Corporation 171,050 Total $967,207

NATIVE AMERICAN – FY 2011

State Applicant Grant Amount Alaska Alaska Manufacturing Extension Partnership 199,000 Alaska City of Tanana 63,000 Alaska University of Alaska Anchorage (UAA), SBD 200,000 California Resource for Native Development (RFND) 99,000 California Yurok Economic Development Corporation 98,000 Michigan Northern Shores Loan Fund, Inc. 99,000 Montana Montana Indian Business Alliance 54,585 Montana Native American Community Development 25,000 Nebraska Center for Rural Affairs 99,000 Nebraska Ponca Economic Development Corporation 195,169 New Mexico Farm to Table, Inc. 48,500 New Mexico Pueblo of Jemez 50,000 New Mexico Pueblo of Zia 50,000 Nevada Moapa Band of Paiutes 260,000 New York St. Regis Mohawk Tribe 75,000 Oklahoma City of Miami 151,300 Oklahoma Eastern Shawnee Tribe of Oklahoma 200,000 Oklahoma Ottawa Tribe of Oklahoma 144,836 Oregon Chemeketa Community College 50,120 Oregon Cow Creek Band of Umpqua Tribe of Indians 96,500 Oregon The Klamath Tribes 99,441 Oregon Oregon Native American Business and Entrepreneurial Network Inc. 97,331 South Carolina Catawba Cultural Preservation Project (CCPP) 50,000 South Dakota Four Bands Community Fund, Inc. 99,000 South Dakota Red Cloud Indian School, Inc. 98,327 South Dakota Wounded Knee Community Development 99,000 Washington Makah Tribal Council 48,000 Washington Squaxin Island Tribe 50,000 Wisconsin Great Lakes Inter-Tribal Council, Inc. 99,999 Wisconsin LaPointe Financial, Inc. 40,000 Wisconsin Northwood’s Niijii Enterprise Community, Inc. 182,722 Wyoming Wind River Development Fund 34,384 Total $3,256,214

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

SPECIALTY PROGRAMS DIVISION 20 Rural Economic Development Loan and Grant Program

RURAL ECONOMIC DEVELOPMENT LOAN AND GRANT PROGRAM The Rural Economic Development Loan and Grant Program (REDLG) funds rural projects through local utility organiza-tions. REDLOAN PROGRAM The REDLoan program provides zero interest loans to local utilities, which the utilities provide to local businesses (Ultimate Recipients) for projects that will create and retain employment in rural areas. The ultimate recipients repay the lending utility directly. The utility is responsible for repay-ment to the Agency. REDGRANT PROGRAM The REDGrant program provides grant funds to local utility organizations, which they use to establish revolving loan funds. Each utility provides loans through the revolving loan fund to projects that will create or retain rural jobs. In FY 2011, the REDLoan program issued 47 loans totaling $29,412,012, helped create and/or save over 4,100 jobs, and assisted 163 small businesses.

The REDGrant program issued 23 grants totaling $6,257,333, helped create and/or save 2,974 jobs, and assisted 231 small businesses.

$1.04 million Rural Economic Development Loan helped finance a milk processing plant in Rexford, Kansas

SUCCESS STORY

RURAL ECONOMIC DEVELOPMENT LOAN AND GRANT PROGRAM

THE NEED: Green Iron Equipment of Napoleon, North Dakota, needed to expand its maintenance service facility to accommodate repairs on large equipment. “We probably wouldn`t be able to service as many customers as we are now,” said the store manager at Green Iron Equipment. “Access to capital is hard to come by. It`s especially hard to come by in rural communities.” “What we do through USDA Rural Development is provide access to capital, try to match some hope with some opportunity,” said Vickie Walker, USDA North Dakota Rural Development State Director. HOW RURAL DEVELOPMENT HELPED: USDA Rural Development provided a Rural Economic Development Loan to KEM Electric who then made a $450,000 interest free loan to Green Iron to expand their service shop.

THE RESULTS: The John Deere Dealership was able to add about 15,000 square feet to their shop increasing the customer base.

Green Iron Equipment receives $450,000 Rural Economic Development Loan

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

SPECIALTY PROGRAMS DIVISION 21 Rural Economic Development Loan Program

RURAL ECONOMIC DEVELOPMENT LOAN PROGRAM - FY 2009 – FY 2011 States 2009 2010 2011

Amount Number of Loans Amount Number of Loans Amount Number of Loans

Alabama 850,000 3 1,290,000 2 - - Alaska - - - - - - Arizona - - - - - - Arkansas - - - - - - California - - - - - - Colorado - - - - 720,000 1 Connecticut - - - - - - Delaware - - - - - - Florida - - - - - - Georgia 3,610,000 5 - - 740,000 1 Hawaii - - - - - - Idaho - - - - - - Illinois 1,480,000 2 1,240,000 2 1,480,000 2 Indiana 740,000 1 - - 740,000 1 Iowa 2,085,250 4 1,440,000 3 2,042,000 3 Kansas 7,248,400 11 3,152,000 5 4,367,500 8 Kentucky 1,620,000 3 1,002,000 2 2,220,000 3 Louisiana - - - - - - Maine - - - - - - Maryland - - - - - - Massachusetts - - - - - - Michigan - - 600,000 1 - - Minnesota 3,427,360 5 1,480,000 2 3,395,228 6 Mississippi 3,700,000 5 1,480,000 2 2,220,000 3 Missouri 1,040,000 2 2,220,000 3 740,000 1 Montana - - 144,000 1 817,472 2 Nebraska - - 740,000 1 740,000 1 Nevada - - - - - - New Hampshire - - - - - - New Jersey - - - - - - New Mexico - - - - - - New York - - - - - - North Carolina - - 740,000 1 1,440,000 2 North Dakota 740,000 1 450,000 1 1,820,000 3 Ohio - - - - - - Oklahoma 400,000 1 350,000 2 900,000 2 Oregon - - 1,100,000 2 - - Pennsylvania - - - - 109,812 1 Puerto Rico - - - - - - Rhode Island - - - - - - South Carolina 2,127,360 3 1,980,000 3 1,980,000 3 South Dakota 740,000 1 740,000 1 1,460,000 2 Tennessee 5,883,000 9 1,027,572 2 1,480,000 2 Texas - - - - - - Utah - - - - - - Vermont - - - - - - Virgin Islands - - - - - - Virginia 480,000 1 250,000 1 - - Washington - - - - - - W. Pacific Areas - - - - - - West Virginia - - - - - - Wisconsin - - 500,000 1 - - Wyoming - - - - - - Totals $36,171,370 57 $21,925,572 38 $29,412,012 47

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

SPECIALTY PROGRAMS DIVISION 22 Rural Economic Development Loan Program

RURAL ECONOMIC DEVELOPMENT LOAN AND GRANT PROGRAM FACTS

WHO IS ELIGIBLE? To receive funding under the REDLG Program, which will be forwarded to selected eligible projects, an entity must meet the following conditions:

• Borrowed and repaid or pre-paid an insured, direct, or guaranteed loan received under the Rural Electrification Act

• Be a not-for-profit utility that is eligible to receive assistance from the Rural Development Electric or Telecommuni- cation Program

• Be a current Rural Development Electric of Telecommunication Programs borrower

U.S. Dollars $0 - $700K

>700K - $1M >$1M - $2M >$2M - $3M >$3M - $5M

Rural Economic Development Loan Program – FY 2011 Funding

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

SPECIALTY PROGRAMS DIVISION 23 Rural Economic Development Loan Program

RURAL ECONOMIC DEVELOPMENT ENERGY EFFICIENCY INITIATIVE

RECOVERY THROUGH RETORFIT The U.S. Department of Agriculture (USDA) and other Federal agencies announced support and commitment to strengthening the home energy efficiency improvement industry. Eleven departments and agencies involved in the Recovery Through Retrofit (RTR) effort will work with industry, academia, training providers, small businesses, and other partners to launch resources and programs to ensure their success. Secretary Vilsack announced USDA’s partnership with Department of Energy to help rural homeowners lower energy costs by making cost-effective improvements to their

homes. Rural Development’s Rural Economic Development Energy Efficiency (REDEE) effort is part of a government-wide RTR initiative. The Intermediary applies for and receives a Rural Economic Development Loans (REDL), then passes the loan to an Ultimate Recipient (UR). The UR uses the REDL funds as working capital to administer the REDEE projects. The Intermediary or its affiliates may market the program and identify property owners to participate in the program. The UR can also utilize contrac-tors through, or on behalf of, the property owners and use the funds to pay for the energy efficiency improvements.

SUCCESS STORY

RURAL ECONOMIC DEVELOPMENT LOAN HELPS RESIDENTS REDUCE ENERGY COSTS THE NEED: KW Savings Company Central Electric Power Cooperative requested a zero interest loan to promote energy efficiency. The cooperative would use the funds to make loans to its 100 members to finance residential energy efficiency improve-ments. HOW RURAL DEVELOPMENT HELPED: Rural Development provided a $740,000 REDLoan that partially funded KW Savings Company’s zero interest loan for 10 years on their pilot project. The company will use the funds to underwrite 100 residential loans for an energy efficiency research pilot project. THE RESULTS: The Central Electric Cooperative residential improvement projects will help reduce peak demand and overall energy use of its statewide delivery system by approximately 1,500,000 MWs by the year 2020. The savings will bring substantial benefit to impoverished rural residents in South Carolina. The loan will also help residents lower their overall energy costs, spur job creation and training, and establish the foundation for a large-scale energy efficiency program. The cooperative is targeting candidates with above-average

monthly power bills, site-built, and manufactured homes that need sealing, insulation, or energy-efficient heat pumps to realize significant energy savings.

Mike Couick, CEO, USDA Rural Development South Carolina State Director Vernita Dore and Jim Lamb of Central Electric

Power Cooperative

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

SPECIALTY PROGRAMS DIVISION 24 Rural Economic Development Grant Program

RURAL ECONOMIC DEVELOPMENT GRANT PROGRAM - FY 2009 – FY 2011

2009 2010 2011

State Amount Number of Grants Amount Number of Grants Amount Number of Grants Alabama - - $300,000 1 - - Alaska - - - - 300,000 1 Arizona - - - - - - Arkansas - - - - - - California - - - - - - Colorado 300,000 1 - - - - Connecticut - - - - - - Delaware - - - - - - Florida - - - - - - Georgia 600,000 2 - - 300,000 1 Hawaii - - - - - - Idaho - - - - - - Illinois - - - - 100,000 1 Indiana - - - - 300,000 1 Iowa 2,990,000 10 3,165,000 11 2,526,000 9 Kansas 471,156 2 777,200 3 - - Kentucky 600,000 2 600,000 2 - - Louisiana - - - - - - Maine - - - - - - Maryland - - - - - - Massachusetts - - - - - - Michigan - - 300,000 1 - - Minnesota 250,000 1 653,000 3 300,000 1 Mississippi 300,000 1 300,000 1 - - Missouri - - 600,000 2 300,000 1 Montana - - - - 300,000 1 Nebraska 300,000 1 900,000 3 - - Nevada - - - - - - New Hampshire - - - - - - New Jersey - - - - - - New Mexico - - - - - - New York - - - - - - North Carolina - - - - - - North Dakota 600,000 2 300,000 1 683,333 3 Ohio - - - - - - Oklahoma - - 91,370 1 - - Oregon - - - - 300,000 1 Pennsylvania - - - - - - Puerto Rico - - - - - - Rhode Island - - - - - - South Carolina 900,000 3 - - - - South Dakota 900,000 3 300,000 1 300,000 1 Tennessee 900,000 3 250,000 1 548,000 2 Texas - - - - - - Utah - - - - - - Vermont - - - - - - Virginia - - - - - - Virgin Islands - - - - - - Washington - - 200,000 1 - - W. Pacific Areas - - - - - - West Virginia - - - - - - Wisconsin 803,000 3 300,000 1 - - Wyoming - - - - - - Totals $9,914,156 34 $9,036,570 33 $6,257,333 23

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

SPECIALTY PROGRAMS DIVISION 25 Rural Economic Development Grant Program

RURAL ECONOMIC DEVELOPMENT LOAN GRANT PROGRAM FACTS

REDLG grantees use grant funds to capitalize a revolving loan fund then lend the funds to eligible borrowers.

EXAMPLES OF ELIGIBLE FUND USE INCLUDE: • Business Incubators

• Community Development Assistance to non-profits and public bodies (particularly job creation or enhancement)

• Facilities and equipment for education and training for rural residents to facilitate economic development

• Facilities and equipment for medical care to rural residents

• Telecommunications/computer networks for distance learning or long distance medical care

U.S. Dollars $0 – $100K

>$100K - $500K >$500K - $1M >$1M - $3M

Rural Economic Development Grant Program – FY 2011 Funding

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

SPECIALTY PROGRAMS DIVISION 26 Rural Microentrepreneur Assistance Program

RURAL MICROENTREPRENEUR ASSISTANCE PROGRAM

The Rural Microentrepreneur Assistance Program (RMAP) supports the development and ongoing success of rural microentrepreneurs and microenterprises. USDA Rural Development provides direct loans and grants to select Microenterprise Development Organizations (MDOs). Eligible MDOs are as follows:

• Non-profit entity • Federally recognized Indian Tribe • Public institution of higher education

In FY 2011, the RMAP loan program issued 38 loans totaling $14,612,500, helped create or save 1,186 jobs, and assisted 212 micro businesses. During that period, the RMAP grant program issued 38 grants totaling $3,131,922, helped create or save 1,064 jobs, and assisted 153 micro businesses. In addition, during FY 2011, RMAP also issued 11 technical assistance grants, obligated $410,500, helped create or save 54 jobs, and assisted 127 micro businesses.

SUCCESS STORY

RURAL NEVADA BUSINESS GET ACCESS TO MUCH NEEDED CAPITAL THE NEED: Rural Nevada businesses needed capital, but banks were unwilling to make small or medium sized loans. The lack of capital had a negative effect on Nevada’s emerging small farms, food systems, and farmer’s markets. HOW RURAL DEVELOPMENT HELPED: In September 2010, the Rural Nevada Development Corporation (RNDC) became one of the first nonprofit development corporations in the nation to participate in the Rural Microentrepreneur Assistance Program (RMAP). Since 1993, RNDC had participated in the Intermediary Relending Program (IRP). RNDC received a $500,000 RMAP loan and $103,000 grant to provide financial and technical assistance and training to rural microentrepreneurs. RNDC serves businesses statewide as well as the 27 Indian Tribes, with the exception of the metropolitan areas of Reno, Carson City, and Las Vegas. THE RESULTS: RNDC will direct the microloans to small businesses in rural areas, with loans between $500 and $50,000. Small farms, entrepreneurs in eligible communities, and tribal areas across Nevada received microloans. To date, six businesses have already received loans approved by RNDC’s new Microloan Committee.

The Rural Nevada Development Corporation participates in RMAP

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

SPECIALTY PROGRAMS DIVISION 27 Rural Microentrepreneur Assistance Program

RURAL MICROENTERPRISE DEVELOPMENT ORGANIZATION GRANTS FY 2010 - 2011

State 2010 2011 Amount Number of Grants Amount Number of Grants Alabama - - 62,500 1 Alaska - - - - Arizona 105,000 1 105,000 1 Arkansas - - - - California 210,000 2 205,000 2 Colorado 75,000 1 - - Connecticut - - - - Delaware - - - - Florida 70,312 1 62,500 1 Georgia 205,000 2 - - Hawaii 100,000 1 - - Idaho 205,000 2 75,000 1 Illinois 272,500 4 - - Indiana - - - - Iowa 105,000 1 - - Kansas 105,000 1 - - Kentucky 205,000 2 - - Louisiana - - 105,000 1 Maine 372,500 5 352,500 4 Maryland 105,000 1 105,000 1 Massachusetts 137,812 2 105,000 1 Michigan 100,000 1 - - Minnesota - - 242,500 3 Mississippi - - - - Missouri - - 212,500 3 Montana 105,500 2 151,875 2 Nebraska 280,000 3 - - Nevada 103,000 1 - - New Hampshire - - - - New Jersey 105,000 1 - - New Mexico - - 205,000 2 New York 100,000 1 210,000 3 North Carolina 105,000 1 - - North Dakota - - 105,000 1 Ohio - - 167,500 2 Oklahoma 210,000 2 - - Oregon 125,000 2 - - Pennsylvania 305,000 4 112,000 2 Puerto Rico - - 105,000 1 Rhode Island - - - - South Carolina 100,000 1 40,000 1 South Dakota 297,500 4 135,647 2 Tennessee 100,000 1 - - Texas 105,000 1 - - Utah - - - - Vermont - - - - Virgin Islands - - - - Virginia 100,000 1 - - Washington 210,000 2 162,500 2 W. Pacific Areas - - - - West Virginia 104,106 1 - - Wisconsin 415,619 6 104,900 1 Wyoming 112,500 2 - - Totals $5,356,349 63 $3,131,922 38

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

SPECIALTY PROGRAMS DIVISION 28 Rural Microentrepreneur Assistance Program

RURAL MICROENTERPRISE DEVELOPMENT ORGANIZATION GRANTS PROGRAM FACTS

ELIGIBLE APPLICANTS MAY INCLUDE: A microenterprise is a sole proprietorship located in a rural area or a business entity that employs 10 people or less, needs $50,000 or less in business capital, and/or needs business-based technical assistance and training. A microentrepreneur is an owner and operator, or prospective owner and operator of a microenterprise who is unable to obtain sufficient training, technical assistance, or credit from sources other than under the Rural Microentrepreneur Assistance Program.

PROJECT USING RMAP FUNDING: Main Street Momence, located in rural Illinois, received a $100,000 grant for an economic development program to help establish a revolving, low-interest loan fund. So far, four businesses have taken out small loans. As a result, these businesses have created 27 new full time jobs and saved 21 jobs.

U.S. Dollars $0 - $1K

>$1K - $100K >$100K - 200K

>$200K - $300K >$300K – $400K

Rural Microenterprise Development Organization Grant Program - FY 2011 Funding

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

SPECIALTY PROGRAMS DIVISION 29 Rural Microentrepreneur Assistance Program

RURAL MICROENTREPRENEUR ASSISTANCE PROGRAM - LOANS FY 2010 – FY 2011

State/Territory 2010 2011

Amount Number of Loans Amount Number of Loans

Alabama - - 250,000 1 Alaska - - - - Arizona 500,000 1 500,000 1 Arkansas - - - - California 1,000,000 2 1,000,000 2 Colorado 300,000 1 - - Connecticut - - - - Delaware - - - - Florida 281,250 1 - - Georgia 900,000 2 - - Hawaii 400,000 1 - - Idaho 900,000 2 - - Illinois 1,450,000 4 - - Indiana - - - - Iowa 500,000 1 - - Kansas 500,000 1 - - Kentucky 1,000,000 2 500,000 1 Louisiana - - 1,650,000 4 Maine 1,750,000 4 500,000 1 Maryland 500,000 1 - - Massachusetts 631,250 2 500,000 1 Michigan 400,000 1 - - Minnesota - - 950,000 3 Mississippi - - 687,500 2 Missouri - - - - Montana 450,000 2 - - Nebraska 1,200,000 3 - - Nevada 500,000 1 - - New Hampshire - - - - New Jersey 500,000 1 900,000 2 New Mexico - - 1,090,000 3 New York 400,000 1 - - North Carolina 500,000 1 500,000 1 North Dakota - - 750,000 2 Ohio - - - - Oklahoma 1,000,000 2 - - Oregon 500,000 1 700,000 2 Pennsylvania 1,600,000 5 500,000 1 Puerto Rico - - - - Rhode Island - - 1,050,000 3 South Carolina 400,000 1 335,000 1 South Dakota 1,370,000 4 550,000 2 Tennessee 400,000 1 - - Texas 500,000 1 - - Utah - - - - Vermont - - - - Virgin Islands - - 250,000 1 Virginia 500,000 1 - - Washington 1,000,000 2 650,000 2 West Virginia 500,000 1 - - W. Pacific Areas - - 300,000 1 Wisconsin 2,200,000 6 - - Wyoming 450,000 2 500,000 1 Totals $24,982,500 62 14,612,500 38

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

U.S. Dollars $0 - $100K

>$100K - $500K >$500K - $1M >$1M - $2M

SPECIALTY PROGRAMS DIVISION 30 Rural Microentrepreneur Assistance Program

RURAL MICROENTREPRENEUR ASSISTANCE LOAN PROGRAM FACTS

The RMAP program provides direct support for small business formation and offers technical assistance and training to small rural businesses. The program also helps create new off-farm income opportunities that help support owners of small and mid-size farm operations. In many cases, an entrepreneur needs only a small amount of money (microloan) to get started.

EXAMPLE OF A PROJECT RECEIVING RMAP FUNDS: Mountain CAP of WV, Inc., was selected to receive a $500,000 loan and a $104,106 grant to expand their programs so it could provide assistance to small businesses in the West Virginia counties of Barbour, Braxton, Clay, Fayette, Gilmer, Lewis, Nicholas, Randolph, Roane, Upshur, and Webster.

Rural Microentrepreneur Assistance Program – Loans FY 2011 Funding

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

SPECIALTY PROGRAMS DIVISION 31 Rural Microentrepreneur Assistance Program

RURAL MICROENTREPRENEUR TECHNICAL ASSISTANCE PROGRAM GRANTS - FY 2010 – FY 2011

State 2010 2011 Amount Number of Grants Amount Number of Grants

Alabama - - - - Alaska - - - - Arizona - - - - Arkansas - - - - California 205,000 2 120,000 3 Colorado - - - - Connecticut - - - - Delaware - - - - Florida - - - - Georgia - - 40,000 1 Hawaii 130,000 1 - - Idaho - - - - Illinois - - 40,000 1 Indiana - - - - Iowa 130,000 1 - - Kansas - - - - Kentucky - - 40,000 1 Louisiana - - - - Maine - - - - Maryland - - - - Massachusetts - - - - Michigan - - - - Minnesota - - 75,000 2 Mississippi - - 27,750 1 Missouri - - - - Montana 130,000 1 27,750 1 Nebraska - - - - Nevada - - - - New Hampshire - - - - New Jersey - - - - New Mexico - - - - New York - - 40,000 1 North Carolina 130,000 1 - - North Dakota - - - - Ohio 130,000 1 - - Oklahoma - - - - Oregon - - - - Pennsylvania 85,000 1 - - Puerto Rico - - - - Rhode Island - - - - South Carolina - - - - South Dakota - - - - Tennessee - - - - Texas 130,000 1 - - Utah - - - - Vermont - - - - Virginia 219,500 3 - - Washington - - - - West Virginia - - - - W. Pacific Areas - - - - Wisconsin - - - - Wyoming - - - - Totals $1,289,500 12 $410,500 11

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

SPECIALTY PROGRAMS DIVISION 32 Rural Microentrepreneur Assistance Program

MICROENTREPRENEUR TECHNICAL ASSISTANCE GRANT PROGRAM FACTS

Technical Assistance Grants are used to provide education, guidance, and instructions to rural micro entrepreneurs so they can:

• Prepare for self-employment • Improve the state of their existing rural microenterprises • Increase their capacity in a specific technical aspect of the subject business • Achieve a degree of business preparedness so they can obtain business loans independently

Eligible applicants may include microenterprises, which are sole proprietorships located in rural areas, business entities located in rural areas that employ 10 or fewer people, need of $50,000 or less in business capital, and/or need of business based technical assistance and training.

Rural Microentrepreneur Technical Assistance Program – Grants FY 2011 Funding

U.S. Dollars $0 – 20K

>$20K - $120K

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

ENERGY DIVISION 33

HELPING SECURE AMERICA’S ENERGY FUTURE

ENERGY DIVISION HOW USDA SUPPORTS OUR ENERGY FUTURE The USDA supports President Obama’s charge to deliver alternative energy sources. The President’s vision to create new jobs and greater economic vitality in rural America will increase the nation’s energy independence and reduce our economic vulnerability to volatile oil prices and uncertain supplies. The President's vision will also help create technological and industrial leadership in renewable bio-fuels, address climate change issues, and make better use of natural resources. USDA will fulfill the President’s commitment to meet Congressional bio-fuels goals and develop renewable sources of energy through USDA Rural Development’s four energy programs. These programs fund biorefinery and bio-energy projects, energy audits, feasibility studies, and energy efficiency improvements (grain dryers, irrigation systems, and reverse osmosis). The programs also fund renewable energy systems (solar, wind, anaerobic digesters, wood-to-energy, flexible fuel pumps, bio-fuels, geothermal, hydroelectric,

and ocean) and many other projects that help make small rural businesses, agriculture producers, and ranchers more compete-tive.

Kuehn Acres Dairy Farm, located in Egg Harbor, Wisconsin, used a Rural Energy for America Program grant to fund its solar panels

NEW ENERGY INITIATIVES

USDA COLLABORATES WITH U.S. NAVY AND EPA ON RENEWABLE ENERGY INTERAGENCY AGREEMENT WITH U.S. NAVY USDA Rural Development is working with the U.S. Navy to support initiatives that have the following goals:

• Reduce fossil fuels energy consumption • Increase clean energy production from renewable

energy sources • Meet the U.S. Navy’s transportation needs • Support the Secretary of the Navy’s Great Green

Fleet Initiative

The Agriculture and U.S. Navy Secretaries signed a Memoran-dum of Understanding (MOU) to develop advanced bio-fuels, renewable energy systems, and renewable energy sources. Both departments will work together to secure the nation’s energy future. USDA Secretary Vilsack noted that in addition to National Security, clean energy, and environmental factors, the MOU creates an opportunity for the USDA to use its resources to create jobs and create second and third generation bio-fuels for Military use. Farmers will sell raw materials to processing facilities for conversion to bio-fuels. INTERAGENCY AGREEMENT WITH EPA USDA Rural Development is working with U.S. Environmental Protection Agency (EPA) through an interagency partnership that supports agricultural and business based renewable energy systems. USDA and EPA will advance the deployment of commercially ready anaerobic digestion and biogas technologies that reduce investment and operational risk to farm owners.

This MOU creates jobs, a cleaner environment, and a secure America, which are

priorities of the Obama Administration.

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

ENERGY DIVISION 34

ENERGY DIVISION ACCOMPLISHMENTS - FY 2011

“America needs a reliable, sustainable, fuel supply. If we are able to produce more of it here at home – rather than relying on foreign oil – we will generate good, middle-class jobs and strengthen our economy in the long run. That is why the US Department of Agriculture (USDA) and the Obama administration are working with private industry to pursue an ‘all-of-the-above’ energy strategy to promote American-produced renewable energy coupled with domestic oil and gas production. The USDA Rural Development renewable energy programs are an important part of that strategy.” Thomas J. Vilsack Secretary of Agriculture

Program Number of Loans

and Grants

Dollars Obligated

Jobs Created

and Saved

Businesses Assisted

Projected kilowatt hours

of energy produced/saved

Projected gallons of fuel contributing

to RFS2

Section 9007 Rural Energy for America Loans

49 34,072,816 263 545 513,610,529 6,164,122

Section 9007 Rural Energy for America Grants

1,949 62,439,498 1,610 2,764 1,540,831,586 6,017,927

Section 9005 Advanced Biofuel Payment Program

457 136,125,466 - 174 7,187,645,365 1,744,347,988

Section 9003 Biorefinery Assistance Program

4 255,675,000 236 4 83,975,488 30,000,000

Total 2,459 $488,312,780 2,109 3,487 9,326,062,968 1,786,530,037

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

ENERGY DIVISION 35 Section 9007 - Rural Energy for America Program

SECTION 9007 - RURAL ENERGY FOR AMERICA PROGRAM

The Section 9007 - Rural Energy for America Program (REAP) provides loan guarantees and grants to agricultural producers and rural small businesses to install renewable energy systems, make energy efficiency improvements, conduct energy audits, provide renewable energy development assistance, and conduct feasibility studies.

SECTION 9007 – RENEWABLE ENERGY SYSTEMS AND ENERGY EFFICIENCY IMPROVEMENT GRANTS AND LOANS FY 2009 - FY 2011

State 2009 2010 2011 Grant Loan Grant Loan Grant Loan Alabama 37,490 - 1,096,161 593,791 931,604 - Alaska 91,600 - 254,123 - 759,426 - Arizona 248,948 - 502,333 - 442,925 - Arkansas 38,037 - 999,604 44,813 858,253 87,610 California 570,607 70,000 1,417,328 406,000 1,134,283 1,410,000 Colorado 554,562 600,000 474,562 95,000 706,541 - Connecticut 195,650 391,310 71,745 63,500 497,786 - Delaware 79,816 - 70,293 - 132,607 - Florida 415,170 - 125,000 - 626,452 - Georgia 1,469,866 1,334,894 3,319,908 1,567,179 1,425,419 - Hawaii 112,306 - 427,891 232,200 168,216 190,000 Idaho 301,138 - 976,692 1,500,000 1,886,762 - Illinois 3,137,159 2,953,314 4,266,170 2,434,970 1,521,653 49,750 Indiana 1,230,376 470,588 3,786,132 1,531,118 1,623,718 137,008 Iowa 13,869,163 21,009,578 20,126,175 24,055,933 4,436,052 1,293,238 Kansas 1,034,974 882,853 818,573 148,345 796,043 - Kentucky 680,479 333,297 1,440,948 1,355,629 1,309,685 88,520 Louisiana 304,523 - 679,276 1,000,000 582,956 - Maine 191,534 - 534,569 1,667,781 488,961 - Maryland 114,694 - 747,994 - 436,064 - Massachusetts 1,416,491 2,520,638 425,725 1,588,613 423,668 - Michigan 1,496,642 502,465 2,194,168 391,131 2,227,354 30,000 Minnesota 4,167,201 2,761,827 5,799,265 2,237,408 2,581,798 137,102 Mississippi 477,315 - 666,152.53 - 892,337 - Missouri 487,334 - 1,986,417 5,810,917 1,049,304 174,999 Montana 76,202 - 603,367 10,200 271,712 153,231 Nebraska 2,653,393 2,704,419 2,834,914 3,031,260 1,205,493 20,900 Nevada 119,906 - 213,748 - 135,535 - New Hampshire 126,469 - 218,683 409,997 226,941 99,500 New Jersey 654,740 1,100,050 1,234,253 783,887 1,573,324 - New Mexico 109,483 - 340,883 600,000 454,374 250,000 New York 1,023,913 475,599 1,780,633 1,219,487 1,257,201 - North Carolina 1,563,698 416,500 2,705,082 926,000 1,867,441 9,000,000 North Dakota 215,105 199,839 718,526 530,684 682,611 - Ohio 2,931,669 9,978,071 5,461,997 7,029,505 3,870,551 7,438,750 Oklahoma 277,686 - 268,938 136,152 767,161 257,173 Oregon 1,297,552 2,227,140 1,256,736 81,093 1,297,853 10,850,000 Pennsylvania 503,837 - 1,647,086 867,065 2,625,273 - Puerto Rico 31,995 - - - 341,926 - Rhode Island 100,737 - 159,773 - 23,620 - South Carolina 548,046 40,000 823,532 923,521 739,384 - South Dakota 904,476 860,350 1,768,333 1,629,277 873,100 269,145 Tennessee 659,687 841,692 1,694,612 1,658,691 1,743,110 -

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

U.S. Dollars >$0K - $500K >$500K - $1M >$1M - $2M >$2M - $5M

ENERGY DIVISION 36 Section 9007 - Rural Energy for America Program

SECTION 9007 - RENEWABLE ENERGY SYSTEMS AND ENERGY EFFICIENCY IMPROVEMENT GRANTS AND LOANS FY 2009 - FY 2011

State 2009 2010 2011 Texas 392,967 - 1,114,006 - 3,224,100 - Utah 51,179 - 172,091 - 1,729,005 287,000 Vermont 1,196,908 1,184,794 1,806,685 3,710,252 582,890 527,703 Virginia 823,897 435,271 759,922 - 1,020,141 - Washington 740,000 2,400,000 676,887 1,386,500 634,909 - West Virginia 20,000 - - - 215,140 - Western Pacific 231,492 319,408 355,860 254,000 33,757 - Wisconsin 946,785 445,131 2,103,223 1,086,605 1,589,641 1,321,187 Wyoming 57,083 - - - 100,568 - Total $50,981,980 $57,459,028 $83,926,975 $72,998,504 $57,026,628 $34,072,816

Section 9007 - Rural Energy for America Program Grants - FY 2011 Funding

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

ENERGY DIVISION 37 Section 9007 - Rural Energy for America Program

SECTION 9007 - RURAL ENERGY FOR AMERICA PROGRAM FEASIBILITY STUDY GRANT AWARDS - FY 2009 AND FY-2011

The REAP Feasibility Study Grant Program helps rural businesses complete feasibility studies for eligible renewable energy systems that qualify for REAP Renewable Energy System Grants and/or Loan Guarantees. Feasibility studies are required in applications for USDA and other government energy programs.

REAP FEASIBILITY STUDY

State/Territory Grant Awards - FY 2009 Grant Awards - FY 2011

Alaska 50,000 50,000 Arkansas 41,085 - California - 8,250 Colorado 45,882 51,500 Connecticut 79,600 - Georgia - 21,875 Hawaii - 60,633 Idaho 125,000 89,874 Indiana 50,000 23,406 Iowa 78,000 120,765 Kansas 38,800 - Kentucky 94,577 20,000 Louisiana 3,750 - Maine - 18,270 Maryland 2,500 11,625 Massachusetts 10,000 - Michigan 50,000 125,246 Minnesota 114,398 200,000 Missouri 12,500 112,875 Montana - 45,250 Nebraska 40,462 82,502 New Hampshire 45,800 -

REAP FEASIBILITY STUDY

State/Territory Grant Awards - FY 2009 Grant Awards - FY 2011

New Jersey - 147,500 New Mexico - 8,978 New York - 49,274 North Carolina - 49,625 North Dakota 8,750 10,000 Ohio - 128,750 Oklahoma - 50,000 Oregon 173,000 186,037 Puerto Rico - 9,575 Rhode Island - 100,000 South Carolina 6,750 10,000 South Dakota 50,000 250,000 Tennessee - 25,000 Texas 20,276 330,551 Utah 52,500 140,000 Vermont - 65,000 Virginia - 10,000 Washington 15,000 112,150 West Virginia - 50,000 Western Pacific - 71,931 Wisconsin 35,970 21,500 TOTAL $1,244,600 $2,867,942

Farms in the Midwest use REAP feasibility study grants and loan guarantees to evaluate wind technology as a possible source of energy

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

ENERGY DIVISION 38 Section 9007 - Rural Energy for America Program

SECTION 9007 - RURAL ENERGY FOR AMERICA PROGRAM AWARDS BY TECHNOLOGY - FY-2011

Technology Projects Loans Grants Amount Leveraged Projected Energy Saved/Generated

(1,000 KWH)

Projected Greenhouse Gas Reduction (CO2)

Biomass

Anaerobic Digester 19 13,102,890 7,798,189 89,972,097 139,877 152,709 Biodiesel Production 4 - 872,633 12,013,838 645,451 645,374 Biofuel from Waste 6 - 814,228 4,104,144 19,852 20,515 Solid Fuel Production 12 - 803,950 2,887,937 388,842 387,572 Thermal Conversion 10 5,000,000 164,650 16,144,873 46,899 50,521 Energy Efficiency 1,141 1,317,649 21,842,568 73,565,052 343,202 184,653 Flexible Fuel Pump 66 - 4,284,342 22,193,369 353,292 341,119 Geothermal 59 124,388 1,288,172 4,251,333 31,557 31,079 Hybrid 13 79,906 491,183 1,605,158 492 486 Hydroelectric 7 7,487,000 1,010,001 13,298,709 22,487 25,517 Hydropower 2 - 26,517 87,752 87 87 Solar 477 6,077,500 14,417,465 57,747,093 31,752 37,504 Wind 55 883,483 2,988,644 75,388,274 30,652 33,551 Other 2 - 224,086 752,184 - - Total 1,873 $34,072,816 $57,026,628 $374,011,813 2,054,442 1,910,686

Section 9007 - Rural Energy for America Program Loans - FY 2011 Funding

U.S. Dollars $0 - $100K

$>100K - $1M >$1M - $4M

>$4M - $11M

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

ENERGY DIVISION 39 Section 9007 - Rural Energy for America Program

SUCCESS STORY

USDA FUNDED BIODIESEL REFINERY HELPS PROMOTE ENERGY INDEPENDENCE

THE NEED: Consolidated Energy Holdings, LLC (CEH) of Pollock, Louisiana needed funding to reopen a biodiesel refinery so they contacted USDA Rural Development. The company received assistance in the form of a Business and Industry Loan Guarantee and a Rural Energy for America Program loan guarantee and grant. HOW RURAL DEVELOPMENT HELPED: USDA Rural Development helped Consolidated Energy Holdings secure more than $10 million in loan guarantees and grants. The company used the loan funds to refinance short-term debt, purchase of a feedstock-holding tank, and install a feedstock pretreatment system and methanol recovery column. The USDA loan guarantees will result in lower interest rates, extended terms, and lower annual debt service. THE RESULTS: CEH celebrated the grand opening of their biodiesel facility. Previously, the plant operated as Vanguard Synfuels but ceased operations due to the high cost of soybeans and other virgin

oil feedstock used to make biodiesel fuel. CEH was able to equip the plant with newly developed components that will produce biodiesel from yellow grease and other organic waste products. The new process will lower production cost. The company’s goal is to produce approximately 12 million gallons of biodiesel per year at competitive prices. USDA Rural Development guaranteed loans and energy grants also helped fund the retrofit of CEH’s Port of Alexandria plant. The port facility will now be able to sell, blend, ship, and receive fuel and feedstock. The savings, will be 12 to 15 cents per gallon. This funding improved CEH’s cash flow, created 29 jobs, and saved four jobs in a hurricane-impacted area that has persistent poverty and high unemployment.

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

ENERGY DIVISION 40 Energy Audit and Renewable Energy Development Assistance Grant Programs

ENERGY AUDIT AND RENEWABLE ENERGY DEVELOPMENT ASSISTANCE

The Energy Audit and Renewable Energy Development Assistance Grant Programs provide grant assistance to entities that will assist agriculture producers and small rural businesses by conducting energy audits and providing renewable energy development assistance.

ENERGY AUDIT AND RENEWABLE ENERGY DEVELOPMENT ASSISTANCE PROGRAMS FY 2009 – FY 2011

State 2009 2010 2011 Alabama - 100,000 97,500 Arkansas - 97,673 - Arizona 99,750 82,125 - Colorado 73,890 100,000 134,825 Georgia 100,000 100,000 100,000 Hawaii - - 100,000 Iowa 200,000 96,380 132,427 Idaho - - 100,000 Illinois 100,000 198,000

Indiana 100,000 93,374 96,531 Kentucky - 100,000 100,000 Louisiana - 136,448 - Massachusetts 100,000 - - Maine 100,000 200,000 200,000 Michigan 100,000 100,000 100,000 Minnesota - 98,000 100,000 Missouri 200,000 100,000 - Nebraska 200,000 - - North Carolina - 100,000 199,820 New Mexico 100,000 - 100,000 Nevada - - 99,935 Ohio 100,000 - - Oregon 199,991 200,000 174,209 Pennsylvania - 198,000 199,676 Rhode Island - - 50,000 South Carolina 100,000 - - South Dakota 100,000 100,000 - Washington - 100,000 200,000 Wisconsin 100,000 - - West Virginia 100,000 100,000 100,000 Wyoming - - 160,000 Total $2,173,631 $2,400,000 $2,544,923

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

ENERGY DIVISION 41 Section 9005 – Advanced Biofuel Payment Program

PAYMENTS TO BIOFUEL PRODUCERS – FY 2010 AND FY 2011 State 2010 2011 Alaska - 2,204 Alabama - 764.63 Arkansas 714,775 2,251,417 Arizona 1,691,533 2,866,280 California 88,126 1,542,321 Colorado - 33,579 Connecticut - 223,951 Florida 14,635 364,463 Georgia 426,391 1,348,107 Hawaii 10,947 112,420 Iowa 2,403,347 13,499,571 Idaho 257,701 442,381 Illinois 795,701 8,146,862 Indiana 273,131 10,935,160 Kansas 4,692,517 16,578,279 Kentucky 21,851 3,740,310 Maine 516,171 389,802 Massachusetts

16,462

Michigan 15,663 111,433 Minnesota 1,341,367 7,631,087 Missouri 957,304 11,261,219 Mississippi 157,986 1,186,143 North Carolina 26,569 363,720 Nebraska 1,863,114 5,322,685 New Hampshire - 432,989 New Mexico - 51,633 Nevada 10,537 67,156 New York 107,059 243,417 Ohio 5,639 213,340 Oklahoma 501,713 4,364,762 Oregon 2,189 2,405,402 Pennsylvania 26,423 19,768,247 Rhode Island

64,692

South Dakota - 84,228 Tennessee 3,556 94,713 Texas 653,143 15,905,453 Virginia 53,577 431,491 Vermont

34,594

Washington 557,257 2,165,902 Wisconsin 347,136 1,305,504 West Virginia - 120,129 Wyoming - 1,193 Total $18,537,058 $136,125,466

SECTION 9005 - ADVANCED BIOFUEL PAYMENT PROGRAM

The Section 9005 - Advanced Biofuel Payment Program provided payments to producers to support and expand production of advanced biofuels refined from sources other than corn kernel starch.

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

ENERGY DIVISION 42 Section 9005 – Advanced Biofuel Payment Program

SUCCESS STORY

WISCONSIN – BIODIESEL ENERGY

Eighteen Wisconsin-based biofuel production facilities, which include on-farm manure digesters, received federal funds to support their operations. The U.S. Department of Agriculture bases its payments on the amount of bio-fuels recipients produce from renewable biomass, other than corn kernel starch. Renewable energy production will create tens of thousands of American jobs, thousands more indirect jobs, and clean electricity to power millions of homes. The payments support America's growing advanced biofuel industry.

USDA Rural Development Under Secretary Dallas Tonsager addresses a biomass conference sponsored by the U.S. Department of Energy

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

ENERGY DIVISION 43 Section 9003 – Biorefinery Assistance Program

SECTION 9003 - BIOREFINERY ASSISTANCE PROGRAM

The Section 9003 - Biorefinery Assistance Program assists in the development of new and emerging technologies for the development of advanced biofuels. The goals of the Biorefinery Assistance Program are as follows:

• Increase the energy independence of the United States • Promote resource conservation, public health, and safe environment • Diversify markets for agricultural and forestry products and agricultural waste materials • Create jobs and enhance economic development in rural America

SECTION 9003 – BIOREFINERY ASSISTANCE PROGRAM – FY 2011

State Biorefinery Loan Guarantee

Amount Jobs Created

and Saved Energy Generated

(1,000 KWh) Advanced Biofuel Produced

(1,000 of gallons)

Alabama Coskata 87,850,000 39 27,336 12,000

Florida INEOS New Planet Bioenergy 75,000,000 150 15,253 8,000

Michigan Freemont Community Digester 12,825,000 6 18,806 -

Mississippi Enerkem 80,000,000 70 22,780 10,000

Total - $255,675,000 265 84,175 30,000

SUCCESS STORY

FREEMONT COMMUNITY DIGESTER PROJECT TURNS WASTE INTO ENERGY

THE NEED: Fremont Community Digester (FCD) owns and operates a $21.8 million bio-waste to energy plant in Fremont, Michigan. The digester uses an established European technology to convert industrial and agricultural waste into electricity and other products. The plant will use the biogas it produces to generate renewable power and produce approximately 18,606 MWh of renewable electric power per year. The project has signed feedstock supply contracts with Fremont-based Gerber Products Company, several major regional food processors, agricultural operations, and waste sources within a 20-mile radius of the plant. HOW RURAL DEVELOPMENT HELPED: FCD is an example of state and federal cooperation with private sector companies. The project received a $2 million grant from the State of Michigan, Section 9003 Biorefinery

Assistance Program guaranteed loan, and has a power purchase agreement with Consumers Power Company, a Michigan utility company. THE RESULTS: The FCD project will reduce the amount of organic waste sent to landfills near its feedstock suppliers, improve the sustainability of area farms that use FCD's organically based fertilizer instead of traditional fossil fuel-derived fertilizers, and improve the environmental quality of runoff water in the area. The FDC project will also create approximately 6 jobs.

FCD will convert industrial and agricultural waste into electricity

and other products.

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

COOPERATIVE PROGRAMS 44

THRIVING RURAL BUSINESSES LEAD TO THRIVING RURAL

COMMUNITIES

The goal of Cooperative Programs is to expand knowledge (intellectual capital) of the cooperative method of

conducting business. Cooperative Programs also helps rural residents form new cooperatives and improve the

operation of existing cooperatives.

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

COOPERATIVE PROGRAMS 45

Programs 2011 Awards Amount Value-Added Producer Grant Program (VAPG) 299 40,273,811 Rural Cooperative Development Grant (RCDG) 36 7,939,451 Small Socially-Disadvantaged Producer Grant (SSDPG) 19 2,940,256 Rural Business Opportunity Grant (RBOG) 39 2,581,410 1890 Program 10 750,000 Total 403 $54,484,928

The Cooperative Program helps businesses adjust to continually changing economic forces and helps them to operate and compete in today’s global marketplace. We have over 80 years of experience working with the cooperative sector and we are the only federal agency charged with that responsibility. Our activities include program delivery, research, technical assistance, information, education, and statistics.

PROGRAM DELIVERY Cooperative Programs administers the Value-Added Producer Grant (VAPG), Rural Cooperative Development Grant (RCDG), Small Socially Disadvantaged Producer Grant (SSDPG), Rural Business Opportunity Grant (RBOG), and 1890 Land Grant Institutions Rural Entrepreneurial Outreach and Development Initiative (1890) programs. The following table summarizes awards made by Cooperative Programs during FY 2011.

The cooperative form of organizational governance is another cornerstone of business development in rural communities. Cooperatives exist in the traditional form as agricultural producers that economically enhance their farm businesses. Cooperatives exist in the non-traditional form as businesses that bring day care services to rural communities or new generation biofuel cooperatives that lessen the nation’s dependence on foreign oil. Cooperatives provide rural communities with economic benefits in the form of employment opportunities, enhanced educational and health care services, and products that enable them to compete with their urban and suburban counterparts. Coop-erative businesses, employ-ment opportunities, and revenues remain local. Cooperative Programs helps expand knowledge of the cooperative method of conducting business to local companies. Cooperative Programs also helps rural residents form new coopera-tives and improve the operations of existing ones. USDA Cooperative Programs deliver programs, conducts cooperative related research, provides technical assistance, and produces a wide variety of information products to promote public understanding of cooperatives. While agricultural marketing and supply cooperatives remain a primary focus of USDA’s efforts, Cooperative Programs provides reports and other publications to all types of rural cooperatives.

In 2010, Cooperative Programs supported 2,310 farm, ranch, and fish cooperatives who

reported $170.1 billion in gross sales

VAPG The Value-Added Producer Grant Program (VAPG) encourages independent agricultural producers to refine or enhance their raw products, which increases the value of the product and the returns to producers. Since 2001, Cooperative Programs has awarded over 1,500 planning and working capital grants for specialty meats, fruits, vegetables, dairy products, forest products, and renewable energy. In FY 2011, USDA Rural Development provided $40,273,811 for the VAPG program. The funding level represented a combination of FY 2010 funds and FY 2011 funds. Cooperative Programs received over 500 applicants requesting $63.7 million of which 312 applications, requesting $41.3 million were eligible. There were 299 applications selected in FY 2011, which came from 44 states and Puerto Rico. The VAPG program also supports the USDA’s 'Know Your Farmer, Know Your Food' initiative and other local and regional food programs. Examples of VAPG Awards: • Green Mountain Organic Creamery, LLC in North Ferrisburgh, Vermont received a

$300,000 grant to market certified organic, ice cream, and other dairy products to communities throughout the Northeast. In 2011, Green Mountain received the Vermont Dairy of the Year award.

• Living Water Farms, Inc., located in Strawn, Illinois, received a $300,000 working

capital award to produce fresh hydroponic greens for specialty markets in the Midwest. The grant will help the company distribute it products to restaurants, specialty retail shops, and institutional outlets.

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

COOPERATIVE PROGRAMS 46 Grant Programs

RCDG The Rural Cooperative Development Grant Program (RCDG) provides grants to public, nonprofit organizations, and institutions of higher learning so they can establish and operate centers for cooperative development. The centers provide technical assistance that will help improve the economic condition of rural areas through the development of new cooperatives and improved operation of existing cooperatives. In FY 2011, $7.4 million in funds were available for this program. USDA applied the balance of funds from the Small Socially-Disadvantaged Producer Grant program to the RCDG program bringing the total of funds available for awards to approximately $7.9 million. In FY 2011, this money funded 36 centers and two first-time award recipients. EXAMPLES OF RCDG AWARDS: • Mississippi Association of Cooperatives

will use a $225,000 Rural Cooperative Development Grant to provide small and minority farmers with development assistance. The Center focuses the vast majority of its efforts on the most distressed rural areas of the state. The group helps minority farmers establish financially sound businesses.

• The California Center for Cooperative

Development will use a $225,000 Rural Cooperative Development Grant to develop new cooperatives, promote community-supported agriculture, strengthen the marketing of small farm production, and develop systems to link growers with regional consumers. The Center also plans to improve the economic condition of local farmers by helping them form cooperative corpora-tions to enhance their marketplace position.

SSDPG The Small Socially-Disadvantaged Producer Grant Program (SSDPG) provides grants to cooperatives or associations of cooperatives that provide assistance to small, minority producers and whose governing board and/or membership is comprised of at least 75 percent minority. The primary objective

of this grant program is to assist small, minority producers through cooperatives and associations of cooperatives. In FY 2011, 19 projects received a total of $2.9 million. EXAMPLES OF SSDPG AWARDS: • The Louisiana Association of

Cooperatives, located in Gretna, Louisiana, the organization received a SSDPG to provide technical assistance to small producers in 41 rural parishes throughout the state, including in areas affected by Hurricane Gustav.

• The Piedmont Farmers Marketing

Cooperative, Inc., located in Greenwood, South Carolina, used a SSDPG to complete seminars and workshops on animal husbandry, vaccination requirements, techniques on breeding, and raising offspring. The 31-member cooperative developed a marketing study on a certification mark, collective brands, consumer assurance, and alternative livestock planning. The grant also will allow co-operative members to visit a livestock operation that uses livestock waste for renewable energy.

RBOG The Rural Business Opportunity Grant Program (RBOG) provides grant funds to promote sustainable economic develop-ment in rural communities with excep-tional needs by providing training and technical assistance for business devel-opment entrepreneurs and economic development officials. The RBOG program also provides economic devel-opment planning assistance. In FY 2011, the RBOG Program obligated almost $2.6 million and provided 39 awards in 27 states that will create or save 586 jobs. Additionally, USDA targeted 13 awards to Federally-Recognized Native American Tribes in 9 states. EXAMPLES OF RBOG AWARDS: • Indian Country Agriculture Resource

Development Corporation received a $72,200 through RBOG to provide business training to 20-24 Native American agricultural entrepreneurs. The training will include general business planning, feasibility and risk assessment, marketing techniques, and financial planning. The training will help Native American agricultural producers supply meat and vegetables to food deserts in south- western Oklahoma.

• Memphis Bioworks Foundation, a

nonprofit organization that is expanding the biosciences industry as a whole in the greater Memphis area, will use their $149,000 RBOG grant to expand AgBioWorks. This regional collaboration will support and encourage alternative crop production and processing pilot trials across the region.

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

U.S. Dollars $0 - $100K

>$100K - $250K >$250K - $300K >$300K - $350K

COOPERATIVE PROGRAMS 47 Rural Business Opportunity Grant Program

RURAL BUSINESS OPPORTUNITY GRANT PROGRAM

The Rural Business Opportunity Grant Program (RBOG) promotes sustainable economic development in rural communities with exceptional needs through provision of training and technical assistance.

In FY 2011, the RBOG program obligated $2,581,410 and supported 39 awards in 27 states. Additionally, 13 RBOG awards went to Federally-Recognized Native American Tribes in nine states. Overall, RBOG funding will help create or save 586 jobs.

State/Territory Amount Alabama - Alaska 37,675 Arizona - Arkansas 50,000 California 315,946 Colorado 149,998 Connecticut - Delaware - District of Columbia - Florida - Georgia 50,000 Hawaii - Idaho 46,975 Illinois 50,000 Indiana 50,000 Iowa 300,000 Kansas - Kentucky -

State/Territory Amount Oklahoma 122,200 Oregon 108,300 Pennsylvania - Rhode Island - South Carolina 36,332 South Dakota 150,000 Tennessee 149,693 Texas - Utah - Vermont 74,000 Virgin Islands - Virginia - Washington 49,201 West Virginia - Western Pacific - Wisconsin 112,000 Wyoming - Total $2,581,410

State/Territory Amount Louisiana - Maine 89,999 Maryland - Massachusetts - Michigan - Minnesota - Mississippi 50,000 Missouri 49,601 Montana 26,000 Nebraska 100,000 Nevada - New Hampshire 20,000 New Jersey 50,000 New Mexico - New York - North Carolina 50,000 North Dakota 245,000 Ohio 48,500

Rural Business Opportunity Grant Program – FY 2011 Funding

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

COOPERATIVE PROGRAMS 48 Value-Added Producer Grant Program

VALUE-ADDED PRODUCER GRANT PROGRAM

The Value-Added Producer Grant Program (VAPG) encourages independent agricultural producers to refine or enhance their raw products, which increases the value of the product and the returns to producers. In FY 2011, USDA Rural Development made $40,273,811 available to the VAPG program, of which USDA Rural Development approved 299 applications.

State/Territory Dollar Amount Alabama 89,748 Alaska - Arizona 39,500 Arkansas 98,500 California 2,744,955 Colorado 294,440 Connecticut - Delaware - District of Columbia - Florida 49,500 Georgia 2,159,231 Hawaii 285,930 Idaho 1,010,180 Illinois 578,451 Indiana 59,295 Iowa 1,176,312 Kansas 706,059 Kentucky 1,173,353

State/Territory Dollar Amount Oklahoma 340,850 Oregon 1,493,465 Pennsylvania 611,067 Puerto Rico 1,100,000 Rhode Island - South Carolina 442,759 South Dakota 317,500 Tennessee 177,876 Texas 828,480 Utah 884,059 Vermont 857,542 Virgin Islands - Virginia 1,945,681 Washington 1,035,418 West Virginia 49,000 Wisconsin 7,186,512 Wyoming - TOTAL: 40,273,811

State/Territory Dollar Amount Louisiana 298,054 Maine 27,450 Maryland 1,257,333 Massachusetts 13,000 Michigan 1,269,151 Minnesota 1,617,486 Mississippi 482,825 Missouri 1,494,828 Montana 253,530 Nebraska 683,142 Nevada - New Hampshire 440,699 New Jersey 431,432 New Mexico 161,499 New York 1,900,774 North Carolina 1,333,532 North Dakota 98,500 Ohio 774,913

Value-Added Producer Grant Program – FY 2011 Funding

U.S. Dollars $0 – 1K

>$1K - $250K >$250K - $500K >$500K - $1M >$1M - $7.2M

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

COOPERATIVE PROGRAMS 49 Rural Cooperative Development Grant Program

RURAL COOPERATIVE DEVELOPMENT GRANT PROGRAM

The Rural Cooperative Development Grant (RCDG) program provides grants to public, nonprofit organizations and institutions of higher learning to establish and operate centers for cooperative development. In FY 2011, the RCDG program awarded 36 grants for a total of $7,939,451.

Rural Cooperative Development Grants FY 2011

State/Territory Dollar Amount Number

Alabama $191,504 1

Alaska 225,000 1

American Samoa - -

Arizona - -

Kansas 224,993 1

California 225,000 1

Colorado 225,000 1

Connecticut - -

Delaware - -

District of Columbia 225,000 1

Florida - -

Territory of Guam - -

Georgia - -

Hawaii 224,860 1

Idaho -

Illinois -

Indiana 225,000 1

Iowa 225,000 1

Kansas -

Kentucky 225,000 1

Louisiana - -

Maine - -

Maryland - -

Massachusetts 225,000 1

Michigan 225,000 1

Minnesota 675,000 3

Mississippi 225,000 1

Missouri - -

Montana 356,812 2

Rural Cooperative Development Grants FY 2011

State/Territory Dollar Amount Number

Nebraska 224,995 1

Nevada - -

New Hampshire - -

New Jersey - -

New Mexico 416,504 2

New York - -

North Carolina 225,000 1

North Dakota 450,000 2

Northern Mariana Islands/Western Pacific

- -

Ohio 674,783 3

Oklahoma - -

Oregon - -

Pennsylvania 225,000 1

Puerto Rico - -

Rhode Island - -

South Carolina - -

South Dakota 225,000 1

Tennessee - -

Texas 225,000 1

Utah - -

Vermont - -

Virgin Islands - -

Virginia 450,000 2

Washington 450,000 2

West Virginia - -

Wisconsin 450,000 2

Wyoming - -

Total: $7,939,451 36

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

COOPERATIVE PROGRAMS 50 Publications

RURAL COOPERATIVES MAGAZINE ARTICLES In addition to more comprehensive research reports, Cooperative Programs research staff frequently contributes content to Rural Development’s Rural Cooperatives magazine. In FY 2011, Cooperative Programs staff authored the following articles: • Bosrt, Alan, “Cooperative Food Hubs: Food hubs fill the ‘missing middle,’

helping small producers tap local markets,” November/December 2010. • Ling, K. Charles, “Dairy Cooperatives: What They Are and What They

Do,” March/April, 2011. • Reynolds, Bruce, “Ownership succession crucial for rural America: Co-

ops can play role in helping keep farms and ranches in producer hands,” January/February 2011.

• Eversull, E. Eldon, “Long-term trends show co-ops relying less on member equity while use of debt increasing” May/June 2011.

• Chesnick, David, “$122 billion in ’08 sales sets record for Top 100,” Rural Cooperatives, Volume 77, Number 3, pages 24-36, 47, May/June 2010 DeVille, Katherine C., Jacqueline E. Penn, and E. Eldon Eversull, “Ag Co-op Sales and Income Second Highest on Record,” September/October 2010.

• Breeding a merger: Full gamut of merger issues arose during consolidation of A.I. co-ops in Northeast (Wadsworth, James).Wadsworth, James (with Dan Campbell), “Get Ready:

• Co-op Month is coming—what outreach effort will your co-op make?” • Smith, Stephanie, “Financial and legal aspects of succession planning for

family-owned businesses” • Smith, Stephanie, “Succession planning for family-owned businesses is

critical for rural America” • Smith, Stephanie, “Capper-Volstead Q&A” • Smith, Stephanie, “Co-ops faced numerous challenges in 2009”

RESEARCH PUBLICATIONS: In 2011, Cooperative Programs staff’s research work includes the following published research reports:

• Eversull, E. Eldon, Cooperative Financial Profile, 2008, Research Report 222, June 2011, Penn, Jacqueline E., • Katherine C. DeVille, and E. Eldon Eversull, Cooperative Statistics, 2009, U.S. Department of Agriculture, Rural Development,

Service Report 70, November 2010 • Penn, Jacqueline E., E. Eldon Eversull, Directory of Rural—Farmer, Rancher, and Fishery Cooperatives (2011), updated

monthly at www.rurdev.usda.gov/rbs/pub/sr22.htm • Ling, K. Charles, Cooperative Theory, Practice, and Financing: A Dairy Cooperative Case Study, RBS Research Report 221, April

2011 • Brockhouse, John and James Wadsworth, Vital Steps: A Cooperative Feasibility Study Guide, Service Report 58, revised and

updated, December 2010 • Wadsworth, James, Understanding Cooperatives pamphlet series, sections 1-4 and 14, (revised and updated, April 2011) • Wadsworth, James, Cooperatives in Agribusiness, Cooperative Information Report 5, revised and updated, June 2011

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

COOPERATIVE PROGRAMS 51 Marketing and Research

AGRICULTURAL MARKETING AND FARMING RESOURCE CENTER Cooperative Programs supports two outstanding web-based, resource sites - the Agricultural Marketing Resource Center (AgMRC) and the Appropriate Technology Transfer for Rural Areas (ATTRA). AGRICULTURAL MARKETING RESOURCE CENTER The Agricultural Marketing Resource Center (AgMRC) provides producers and processors with critical information so they can build successful value-added agricultural enterprises. AgMRC is a virtual library of agricultural value-added opportunities, business development, and consulting resources for producers. The Value Added Agriculture Program, Iowa State University Extension, and Kansas State University’s Arthur Capper Cooperative Center operate the Center. Each year, the Center receives 5 percent of the amount appropriated for the VAPG program. For more information, visit the AgMRC website at www.agmrc.org.

APPROPRIATE TECHNOLOGY TRANSFER FOR RURAL AREAS The Appropriate Technology Transfer for Rural Areas program (ATTRA) is a national sustainable farming information center located at the University of Arkansas in Fayetteville. ATTA provides technical assistance to farmers, market gardeners, and extension agents on farming topics that include marketing, finance, sustainable and organic agriculture, alternative crops, renewable energy, soil fertility, livestock, and pest control. ATTRA categorizes its topics into the areas of sustainable farming production practices, alternative crop and livestock enterprises, and innovative marketing. The National Center for Appropriate Technology, a private non-profit organization, operates ATTRA through a cooperative agreement with USDA’s Rural Business-Cooperative Service. For more information, visit the ATTRA website at www.attra.org.

COOPERATIVE PROGRAM RESEARCH Cooperative Programs conducts research that provides a knowledge base necessary to support cooperatives dealing with changing markets and business trends. Studies include finan-cial, structural, managerial, policy, member governance, legal, and social issues, and various other economic activities of cooperatives. Research will have direct application to current and emerging requirements of cooperatives. A major challenge is to analyze industry structure and cooperative operational practices to determine the changes required to maintain or achieve a producer-oriented marketing system. Research conducted by Cooperative Programs helps increase farm income and the economic well-being of rural residents by improving the overall operations of farmer cooperatives. Research also helps cooperatives maintain and enhance their long-term ability to serve farmer-members and other rural residents through formulation of strategic responses to changes occurring in the agricultural and food manufacturing sectors. The Cooperative Programs research program uses a combination of resources, including Cooperative Programs staff and university researchers under cooperative agreements, to address a variety of topics relevant to cooperatives. A March 2009 study conducted by the USDA and the University of Wisconsin found that the total gross revenue

generated by cooperatives in the U.S. is $653 billion. The study also found that cooperatives pay the wages of approximately 853,000 workers. USDA has seen an increased demand for high quality research and technical assistance for the cooperative business model. Given current economic conditions, we expect demand to increase over the coming years. According to multiple studies, including a USDA/University of Wisconsin study entitled “Measuring the Economic Impact of Cooperatives in Minnesota,” communities that rely on cooper-atives will be more successful in retaining wealth and reducing the boom-and-bust cycles often associated with businesses controlled from outside the community.

USDA saw increased demand for high quality research and technical assistance for the cooperative business model

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

COOPERATIVE PROGRAMS 52 Marketing and Research

COOPERATIVE DEVELOPMENT USDA Rural Development provides a wide range of assistance for people interested in forming new cooperatives. This help can range from an initial feasibility study to the creation and implementation of a business plan. Staff includes Cooperative Development specialists who do everything from identifying potential cooperative functions through the development of bylaws and business plans. The Cooperative Program staff also provides training for cooperative directors. Our goal is to provide a realistic view of what it takes to make a new cooperative succeed. Cooperative Development specialists located at many of USDA’s State Rural Development offices, also conduct work. TECHNICAL ASSISTANCE USDA Rural Development provides technical assistance to existing cooper-atives facing specific problems or challenges. Technical Assistance includes helping cooperatives develop strategic marketing plans to cope with new competitive forces, merge and partner with other cooperatives, or turn cooperative members’ raw products into value-added products. Technical Assistance helps producers with the following: • make informed choices • determine feasibility to meet

economic needs • operate on sound business

principals • increase member income

These matters are important issues for the cooperative and the rural communities in which they operate. Cooperative Programs can help improve a cooperative’s business structure and operating efficiency. This work often involves an analysis of operations or assessing the economic feasibility of new facilities or adding new products or services.

INFORMATION AND EDUCATION The Cooperative Marketing Act of 1926 mandates that USDA “promote the knowledge of cooperative principles and practices and cooperate in promoting such knowledge with educational and marketing agencies, cooperative associations, and others.” The Cooperative Programs staff works to provide educational information, materials, and research that supports, inspires, and promotes the belief that farmers and other rural residents should address economic problems through the cooperative form of business organiza-tion. Cooperative Programs staff develop and implement methods for promoting understanding of the cooperative form of business. We identify educational needs of the rural cooperative community on a national level and collaborate with other educational institutions, providing business and cooperative education to rural communities. Staff members develop and facilitate cooperative education programs for members, potential members, directors, employees, students, Rural Development employees, public, and international visitors. The staff also encourages and facilitates development of cooperative education programs in rural communities, coopera-tives, cooperative support organizations, institutions of higher learning, and governmental organizations. The staff seeks to identify techniques and programs that maintain and encourage member involvement in cooperatives serving rural communities. Through its education mission, Coop-

erative Programs’ structures research and education that helps farmers and other rural residents address economic problems through the cooperative form of business enterprise. To be successful, the stimulus for development and continuing active involvement in cooperatives must come from farmers and members themselves. Cooperative Programs is the national storehouse for information on coopera-tives, serving cooperative organizations, secondary schools, universities, and the public. Cooperative Programs publications address virtually every aspect of cooperative philosophy, organization, operations, finance, legal and tax issues, and member governance. Thousands of publications are distributed or sold each year. USDA provided displays and presented information at several national and regional conferences. Cooperative programs staff receive numerous requests annually for information from other U.S. government agencies and organizations worldwide seeking information on the cooperative business model. In FY 2011, Cooperative Programs staff responded to formal and informal inquiries on cooperative statistics, industry structures, capital markets, international trade, local food, food hubs, organic farming, anaerobic digesters, renewable energy, cooperative bargaining, housing, and legal and tax issues. In addition to these activities, Cooperative Programs staff has supported Business Programs staff by providing reviews of proposals, feasibility studies, and business plans for both business and renewable energy programs. USDA Rural Development maintains an inventory of nearly 200 cooperative information, research, and education titles that are highly demanded by farmers, rural residents, researchers, students and the public. In FY 2011, the staff responded to approximately 2,000 requests for information and distributed

Technical assistance helps producers make informed choices

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

COOPERATIVE PROGRAMS 53 Marketing and Research

nearly 100,000 publications. Many of these publications are available on the Rural Business-Cooperative Service website, www.rurdev.usda.gov. The staff seeks to identify techniques and programs that maintain and encourage member involvement in cooperatives serving rural communities. EDUCATIONAL EFFORTS IN FY 2011 • Cooperative Programs completed the

study “Educational Initiatives of Farmer Cooperatives” (Research Report 223), which assessed the amount and types of education cooperatives provide, whom they provide it to, and how they provide it. The study found that a significant proportion of farmer cooperatives attain their educational materials and resources from Cooperative Programs.

• The Cooperative Programs staff wrote an article entitled “Study Raises Impor-tant Questions about Co-op Education Efforts,” (forthcoming) for Rural Cooperatives magazine to promote Research Report 223.

• Cooperative Programs continued promoting and distributing its highly used “Understanding Cooperatives” program (fully contained in CD format). Through use of advertisements in Rural Cooperatives magazine, internal out-reach efforts, and assistance from the State Cooperative Councils, Coopera-tive Programs has distributed more

than 3,000 of these CDs to high school vocational-agriculture teachers and other cooperative educators across the Nation. This effort will continue given the product’s high demand.

• Cooperative Programs conducted a major revision of its Cooperative Feasibility Study Guide publication. USDA changed the name of the pub-lication to "Vital Steps: A Cooperative Feasibility Study Guide, Service Report 58, December 2010."

• In January 2011, Cooperative Pro- grams made a presentation based on Service Report 58 in the webinar “Feasibility Analysis for New Coopera-tive Enterprises.”

• Cooperative Programs sponsored and managed the RD outreach booth at the FFA Career Show and Convention.

• Cooperative Programs provided leader-ship to the board of the Association of Cooperative Educators, assisted in the development of the program for its annual Institute, and updated atten-dees on Cooperative Program initia-tives and activities.

• Cooperative Programs participated on the Communications industry-expert panel for the C-FARE study “Agricul- tural Cooperatives: Economics, Oppor-tunities and Structure in a New Era of Food, Fiber and Fuel.”

• Cooperative Programs provided leadership in the development of the Cooperatives Community of Practice

on eXtension.com. This resource is important to cooperative education outreach, both for the cooperative community and for the public.

• Cooperative Programs is working on the cooperative youth team of the eXtension.com cooperative community of practice. Cooperative Programs is updating and revising its extensive question and answer three-part cooperative 101 program into a web-based format for use on the co-op community of practice, and for other distribution.

• Cooperative Programs wrote a cooperative merger experience article for Rural Cooperatives based on an interview with a retired co-op director.

• Cooperative Programs updated and revised its highly popular publication “Cooperatives in Agribusiness” (CIR 5). This publication is widely used by vocational-agricultural teachers and other instructors.

• Cooperative Programs updated and revised its “Understanding Cooperatives” CIR 45 handout series, sections 1-15. These 4-page handouts are very useful for informational and educational meetings with clientele.

• Cooperative Programs updated and revised its highly popular publication Co- ops 101 (CIR 55). The reprint with revisions will be forthcoming.

• Cooperative Programs sponsored and managed the RD outreach booth at the FFA Career Show and Convention.

Cooperative Programs staff responded to

formal and informal inquiries

on cooperative statistics and

industry structures

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

COOPERATIVE PROGRAMS 54 Marketing and Research

OUTREACH/SMALL FARM ACTIVITIES • Presentation at the Delaware State

University (an 1890 Institution) • Risk Management Small Farm

Conference, Dover, DL, November 10-11, 2010

• Participation in 2010 Southern Regional Asset-Building Coalition Conference, New Orleans, LA, October 20-22, 2010

• Presentation at the 12th annual Small Farmers and Ranchers conference, Oklahoma City, OK, November 19-20, 2010

• Participation in the Rural Coalition Annual Board of Directors meeting in Washington, DC, December 1-2, 2010

• Presentation at the 68th Annual Professional Agricultural Workers Conference (PAWC), Tuskegee University, Tuskegee, AL, December 4-8, 2010

• Participation in Operation Spring Plant: USDA Risk Management Annual Small Farmers and Ranchers Conference, Raleigh, NC, January 7-8, 2011

• Participation in Southern University’s Annual Procurement Opportunity Conference: Connecting Business with Contracts, Baton Rouge, LA, March 29-30

• Participation in The Oklahoma Black Historical Research Project, Inc’s Annual Economic Development Conference, Langston University- Oklahoma City Campus, Oklahoma City, OK, April 1-2, 2011

COOPERATIVE STATISTICS Each year, the USDA’s Statistics Staff compile statistics on farmer coopera-tives. Cooperative Program is the only source for national statistics on U.S. agricultural cooperatives. The data is an important part of our agricultural economy. The data from the annual survey is the only source of national information regarding current character-

istics of cooperatives in the United States. The data tracks the following:

• the number of cooperatives in existence

• membership size • business volume • financial characteristics • products marketed

Educational institutions, researchers, investor owned firms, government agencies, Congress, and other organiza-tions in working with or learning about rural cooperatives use statistics gathered on cooperatives. Farmer, rancher and fishery coopera-tives had their second highest sales and income in 2010, trailing, only the record 2008 levels. With four very good years in a row for many cooperatives, they were able to increase employment by more than 7,000 since 2009. 2011 saw significantly higher prices for dairy products, cotton, and livestock and falling prices for food grains and oilseeds. Farm fuel prices were up 25 percent while the prices of most other farm supplies decreased. The 2,310 farm cooperatives surveyed had sales of $170 billion, exceeding the prior year’s sales by almost $1 billion (see Table 1). Dairy products led the increase in cooperative marketing, with sales gains of almost $2 billion (see Table 2). Livestock sales increased $500 million while sugar sales increased $300 million. Grain and oilseed sales dropped by more than $3 billion. Petroleum products saw the biggest sales gain among farm supplies, with sales up $1.2 billion. Crop protectants and seed also saw sales climb. Fertilizer sales declined by $1.1 billion and feed sales dropped by almost $200 million. Net income before taxes was up almost 4 percent, to $4.3 billion, the second highest income ever, but still $500 million less the record $4.8 billion set in 2008.

The past four years have all produced record, or near record, income levels for the nation’s agricultural cooperatives. Farmer, rancher, and fishery cooperatives remain one of the largest employers in many rural communities, with a total workforce of 184,000. The number of full-time employees experienced a large increase in 2010, to 129,000 (up 7,000 from 2009), while the use of part-time and seasonal employees decreased 6 percent, to 54,000. There was a slight uptick in farm numbers, with USDA counting 2.2 million in 2010, up 700 from 2009. The number of farmer cooperatives continues to decline. There are now 2,310 farm, ranch, and fish coopera-tives, down from 2,390 in 2009. Mergers account for most of the drop, resulting in larger cooperatives. USDA annually publishes Outputs, a report on cooperative statistics. The report provides data on a number of cooperatives by type, memberships, gross and net business volume, assets, liabilities, net worth, net income, full and part-time employees, trends, and other related information. An article also appeared in Rural Cooperatives magazine that summarizes the current year statistics. Each cooperative also receives a letter report based on information they provided in the current year survey. The report has a common size income statement and balance sheet and financial ratios that compares each cooperative with similar size and type cooperatives—business comparison information that these cooperatives cannot obtain elsewhere. USDA’s National Agricultural Statistics Service also publishes cooperative statistics annually in Agricultural Statistics. USDA also provides data on cooperatives to the Department of Commerce.

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

COOPERATIVE PROGRAMS 55 Marketing and Research

TABLE 1. U.S. COOPERATIVES

Comparison of 2010 and 2009

Item 2010 2009 Percent Change

Gross, Sales (Billion $) Marketing 101.1 101.4 -0.25 Farm supplies 63.9 63 1.46 Service 5 5 1.48 Total 170.1 169.3 0.44 Balance sheet (Billion $) Assets 65 60.8 6.93 Liabilities 39.2 37.1 5.68 Equity 25.9 23.8 8.88 Liabilities and net worth 65 60.8 6.93 Income Statement (Billion $) Sales (Gross) 170.1 169.3 0.44 Patronage income 0.7 0.9 -23.11 Net income before taxes

4.3 4.1 3.71

Employees (Thousand) Full-time 129.3 122.2 5.81 Part-time, seasonal 54.3 58 -6.29 Total 183.6 180.2 1.92 Membership (Million) 2.2 2.2 0.18 Cooperatives (Number) 2,310 2,390 -3.35

TABLE 2. U.S. COOPERATIVES

Cooperatives Gross Business Volumes 2009 and 2010

Item 2010 2009 Percent Change

Products Marketed Bean/pea (dry edible) 0.163 0.166 -1.81 Cotton 2.387 2.354 1.41 Dairy 32.518 30.543 6.47 Fish 0.225 0.2 12.69 Fruit and vegetable 7.723 7.547 2.32 Grain and oilseed 40.951 44.296 -7.55 Livestock 3.633 3.089 17.6 Nut 0.905 0.814 11.24 Poultry 1.174 1.177 -0.2 Rice 1.531 1.686 -9.2 Sugar 4.89 4.577 6.83 Tobacco 0.243 0.168 44.5 Wool and mohair 0.005 0.005 0.25 Other marketing 4.786 4.769 0.36 Total marketing 101.134 101.391 -0.25 Supplies Purchased Crop protectants 8.095 7.71 5 Feed 10.824 11.05 -2.05 Fertilizer 11.119 12.223 -9.04 Petroleum 24.482 23.264 5.23 Seed 4.256 3.932 8.25 Other supplies 5.144 4.819 6.73 Total supplies 63.92 62.999 1.46 Services/ income 5.013 4.94 1.48 Total business 170.067 169.33 0.44

Each year, the Cooperative Programs Staff compile vital statistics on farmer cooperatives. With four very good years

in a row, starting in 2009, many cooperatives were able to increase employment by more than 7,000.

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

OVERSIGHT RESOURCES COORDINATION STAFF 56 Agency Overview

COMPLIANCE MANAGEMENT OVERVIEW Working in concert with other internal and external oversight and risk management organizations, the Oversight Resources Coordination Staff (OCS) supports the Agency by managing a number of mission critical administrative, oversight and management functions. OCS’ functions include the following: 1. Risk Management

2. Audit Compliance

3. Strategic Planning

4. Budget Administration

5. Performance Management

6. Human Resources

7. Web Management

8. Records Management

9. Procurement

10. Purchasing

11. Information Technology Support Supporting Rural Business- Cooperative Service (RBS) requires a diversified team of professionals. RBS manages over 20 loan and grant programs, administered in 47 State Offices that have over 4,000 employees.

The OCS division administers a number of critical oversight functions for the Agency. One of the most visible is the role of overseeing the risk management with transparency and accountability. OCS uses the Business and Cooperative Programs Assessment Review (BCPAR) process to assist the Agency in mitigating and managing risk.

BUSINESS AND COOPERATIVE PROGRAMS ASSESSMENT REVIEW (BCPAR) The Business and Cooperative Programs Assessment Review (BCPAR) process is an ongoing review of the USDA Rural Develop-ment‘s State Offices that administer Business and Cooperative Program loan and grant programs. BCPARs ensure that State Offices properly administer RBS programs. Using a risk-based review approach, the OCS staff works in tandem with indepen-dent reviewers from the Farm Credit Administration (FCA) to conduct approxi-mately 10 reviews annually. RBS implemented the BCPAR process by conducting detailed reviews of the delivery and servicing of RBS programs at the field level to assure compliance with regulations and administrative guidance. The overall objective of the BCPAR process is to evaluate the effectiveness of State Office delivery systems for RBS programs and ensure compliance with the Office of Management and Budget (OMB) circulars and Departmental regulations. In Fiscal Year 2011, OCS performed BCPARs at the Rural Development State Offices in Oregon, Alabama, Indiana, Minnesota, Vermont/New Hampshire, Nebraska, Pennsylvania, and Colorado. The key objectives of a BCPAR are as follows:

1. Evaluate operations by assessing the condition and performance in the fundamental risk component areas of internal controls, administration of RBS programs, lender oversight, program outreach, and Management Information Systems.

2. Determine the overall degree of risk existing in the RBS program operations and identify the factors contributing to the risk.

3. Recommend or require the State Director to take corrective action as

needed to strengthen RBS program operations and ensure compliance with the applicable regulations. In addition, OCS performed a supple-mental review on a random sample of 93 files, Nationwide. COMPLIANCE MANAGEMENT Another mission critical oversight task OCS performs is internal and external audits conducted by the Office of the Inspector General (OIG) and the General Accounting Office (GAO). OCS coordinates OIG and GAO audit related activity between the agency staff, state and national program managers, and Rural Development’s Financial Management Division. Moreover, OCS serves as the Agency’s lead for audit entrance conferences, tracks the status of numerous National and State office management decisions, and ensures compliance with audit findings and recommended actions. AMERICAN RECOVERY AND REINVESTMENT ACT (ARRA) One of the recent mission critical processes that OCS currently manages is the ARRA reporting for the Agency. In addition to serving on the agency’s ARRA Executive Management Team and Rapid Response Task Force, OCS oversees the reporting process for ARRA recipients.

In FY 2011, OCS helped close 73 percent of the Agency’s open

audits (24 out of 33)

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

OVERSIGHT RESOURCES COORDINATION STAFF 57 Agency Overview

The ARRA reporting ensured the Agency used its $1.5 billion in ARRA funding according to the Office of Management and Budget (OMB) and U.S. Department of Agriculture guidelines. In 2011, USDA obligated over $1.5 billion in ARRA funds (guaranteed loans and grants) for business and economic development projects throughout rural America. CREDIT AND PROGRAM MANAGEMENT To ensure proper credit and program management, OCS represents the Agency on a number of credit and program management working groups such as the Federal Financial Assistance Committee (FFAC) and the Management Control Advisory Group (MCAG).

MANAGEMENT CONTROL REVIEW In conjunction with Rural Developments Financial Management Division (FMD), OCS staff conducts a series of compre-hensive internal Management Control Review (MCR)—an annual detailed examination of Rural Development mission area programs at the National and State Office levels. The reviews determine whether proper controls are in place to produce intended results and comply with applicable laws and regulations. MCR’s also identifies program strengths, areas that need improvement, determine appropriate risk levels, and provide National and State Office managers with recommendations and timelines for improving controls and eliminating deficiencies. In FY 2011, OCS staff conducted a MCR of the Rural Business Enterprise Grant program. During the process, OCS

reviewed over 109 files from 27 States Offices. OCS also held numerous interviews while conducting BCPARs with National Office and State Office program staff. The overall observations concluded that the RBEG Program is operating in accordance with the regulations and accomplishing goals and purpose of the program. MANAGEMENT ACCOUNTABILITY AND CONTROL OCS also manages the audit process for the National Office and the 47 State Offices. The Office of Management and Budget Circular A-123, Management Accountability & Control, defines management responsibility for internal control in Federal agencies. Its purpose is to improve accountability and effectiveness of Federal programs and operations by establishing, assessing, correcting, and reporting on internal controls. RBS traditionally tests guaranteed loans, direct loans, grants, and unliq-uidated obligations. In 2011, OCS did not hold tests due to a department-wide revamping of the A-123 process.

IMPROPER PAYMENTS IMPROVEMENT ACT (IPIA) An improper payment is any payment incorrectly made or processed for an incorrect amount under statutory, contractual, administrative, or other legally applicable requirement. It includes any payment to an ineligible recipient, any payment for an ineligible service, and any payment that does not account for credit for applicable discounts. The Improper Payments Information Act (IPIA) requires all programs perform an annual risk assessment for improper payments. Programs determined to be at risk for improper payments are required to perform annual statistical samples and report results. During FY 2011, OCS conducted risk assessments on all RBS Relending Programs and the Guaranteed Renew-able Energy Loans. Risk assessment components for all programs include program vulnerabilities to improper payments, internal controls preventing improper payments, and significant audits and internal reviews.

An Agency that is committed to

continuous improvement

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

USDA RURAL DEVELOPMENT STATE AND TERRITORY OFFICES 58

ALABAMA Sterling Centre, Suite 601 4121 Carmichael Road Montgomery, AL. 36106-3683 T: (334) 279-3400 F: (334) 279-3403 www.rudev.usda.gov/al

DELAWARE 1221 College Park Drive, Suite 200 Dover, DE 19904-8724 T: (302) 857-3580 F: (302) 857-3640 www.rudev.usda.gov/de

IOWA Federal Building, Room 873 210 Walnut Street Des Moines, IA 50309-2117 T: (515) 284-4663 F: (515) 284-4859

www.rudev.usda.gov/ia

ALASKA 800 West Evergreen Street, Suite 201 Palmer, AK 99645-6539 T: (907) 761-7705 F: (907) 761-7783 www.rudev.usda.gov/ak

FLORIDA 4440 NW 25th Place Gainesville, FL 32614-7010 T: (352) 338-3400 F: (352) 338-3405

www.rudev.usda.gov/fl

KANSAS 1303 SW First American Place, Suite 100 Topeka, KS 66604-4040 T: (785) 271-2700 F: (785) 271-2708

www.rudev.usda.gov/ks

ARKANSAS 700 West Capitol Avenue, Room 3416 Little Rock, AR 72201-3225 T: (501) 301-3200 F: (501) 301-3278 www.rudev.usda.gov/ar

GEORGIA Stephens Federal Building 355 E. Hancock Avenue, Stop 300 Athens, GA 30601-2768 T: (706) 546-2162 F: (706) 546-2152

www.rudev.usda.gov/ga

KENTUCKY 771 Corporate Drive, Suite 200 Lexington, KY 40503-5439 T: (859) 224-7300 F: (859) 224-7340

www.rudev.usda.gov/ky

ARIZONA 230 North First Avenue, Suite 206 Phoenix, AZ 85003-1706 T: (602) 280-8717 F: (602) 280-8881 www.rudev.usda.gov/az

HAWAII Federal Building, Room 311 154 Waianuenue Avenue Hilo, HI 96720-2486 T: (808) 933-8302 F: (808) 933-8327

www.rudev.usda.gov/hi

LOUISIANA 3727 Government Street Alexandria, LA 71302-3327 T: (318) 473-7921 F: (318) 473-7829

www.rudev.usda.gov/la

CALIFORNIA 430 G. Street Agency No. 4169 Davis, CA 95616-4169 T: (530) 792-5800 F: (530) 792-5837 www.rudev.usda.gov/ca

IDAHO 9173 West Barnes Drive, Suite Al Boise, ID 83709-1574 T: (208) 378-5600 F: (208) 378-5643

www.rudev.usda.gov/id

MAINE 967 Illinois Avenue, Suite 4 Bangor, ME 04402-0405 T: (207) 990-9160 F: (207) 990-9165

www.rudev.usda.gov/me

COLORADO 655 Parfet Street, Room E-100 Lakewood, CO 80215-5517 T: (720) 544-2903 F: (720) 544-2981 www.rudev.usda.gov/co

ILLINOIS 2118 West Park Court, Suite A Champaign, IL 61821-2986 T: (217) 403-6200 F: (217) 403-6243

www.rudev.usda.gov/il

MARYLAND 1221 College Park Drive, Suite 200 Dover, DE 19904-8724 T: (302) 857-3580 F: (302) 857-3640

www.rudev.usda.gov/md

CONNECTICUT 451 West Street, Suite 2 Amherst, MA 01002-2999 T: (413) 253-4300 F: (413) 253-4347 www.rudev.usda.gov/ct

INDIANA 5975 Lakeside Boulevard Indianapolis, IN 46278-1996 T: (317) 290-3100 F: (317) 290-3127

www.rudev.usda.gov/in

MASSACHUSETTS 451 West Street, Suite 2 Amherst, MA 01002-2999 T: (413) 253-4300 F: (413) 253-4347

www.rudev.usda.gov/ma

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

USDA RURAL DEVELOPMENT STATE AND TERRITORY OFFICES 59

MICHIGAN 3001 Coolidge Road, Suite 200 East Lansing, MI 48823-6350 T: (517) 324-5188 F: (517) 324-5225 www.rudev.usda.gov/mi

NEW HAMPSHIRE City Center, 3rd Floor 89 Main Street Montpelier, VT 05602-4449 T: (802) 828-6080 F: (802) 828-6018

www.rudev.usda.gov/nh

OKLAHOMA 100 USDA, Suite 108 Stillwater, OK 74074-2654 T: (405) 742-1000 F: (405) 742-1005

www.rudev.usda.gov/ok

MINNESOTA 375 Jackson Street 410 Agri-Bank Building St. Paul, MN 55101-1853 T: (651) 602-7800 F: (651) 602-7824 www.rudev.usda.gov/mn

NEW JERSEY 5th Floor North, Suite 500 8000 Midlantic Drive Mt. Laurel, NJ 08054-1522 T: (856) 787-7700 F: (856) 787-7783

www.rudev.usda.gov/nj

OREGON 1201 NE Lloyd Boulevard, Suite 801 Portland, OR 97232-1274 T: (503) 414-3300 F: (503) 414-3392

www.rudev.usda.gov/or

MISSISSIPPI Federal Building, Suite 831 100 West Capitol Street Jackson, MS 39269-1608 T: (601) 965-4316 F: (601) 965-5850 www.rudev.usda.gov/ms

NEW MEXICO 6200 Jefferson Street NE, Room 255 Albuquerque, NM 87109 T: (505)761-4953 F: (505) 761-4976

www.rudev.usda.gov/nm

PENNSYLVANIA One Credit Union Place, Suite 330 Harrisburg, PA 17110-2996 T: (717) 237-2262 F: (717) 237-2191

www.rudev.usda.gov/pa

MISSOURI 601 Business Loop 70 West Parkade Center, Suite 235 Columbia, MO 65203-2579 T: (573) 876-0976 F: (573) 876-0977 www.rudev.usda.gov/mo

NEW YORK The Galleries of Syracuse 441 South Salina Street, Suite 357 Syracuse, NY 13202-2541 T: (315) 477-6400 F: (315) 477-6438

www.rudev.usda.gov/ny

PUERTO RICO IBM Building, Suite 601 654 Munoz Rivera Avenue San Juan, PR 00936-6106 T: 787-766-5095 F: 787-766-5844

www.rudev.usda.gov/pr

MONTANA 900 Technology Boulevard Suite B, Unit 1 Bozeman, MT 59718-4011 T: (406) 585-2580 F: (406) 585-2565 www.rudev.usda.gov/mt

NORTH CAROLINA 4405 Bland Road, Suite 260 Raleigh, NC 27609-6293 T: (919) 873-2000 F: (919) 873-2075

www.rudev.usda.gov/nc

RHODE ISLAND 451 West Street, Suite 2 Amherst, MA 01002-2999 T: (413) 253-4300 F: (413) 253-4347

www.rudev.usda.gov/ri

NEBRASKA Federal Building, Room 152 100 Centennial Mall North Lincoln, NE 68508-3803 T: (402) 437-5551 F: (402) 437-5408 www.rudev.usda.gov/ne

NORTH DAKOTA Federal Building, Room 208 220 East Rosser Bismarck, ND 58502-1737 T: (701) 530-2037 F: (701) 530-2111

www.rudev.usda.gov/nd

SOUTH CAROLINA Strom Thurmond Federal Building 1835 Assembly Street Room 1007 Columbia, SC 29201-2449 T: (803) 765-5163 F: (803) 765-5633

www.rudev.usda.gov/sc

NEVADA 1390 South Curry Street Carson City, NV 89703-5146 T: (775) 887-1222 F: (775) 885-0841 www.rudev.usda.gov/nv

OHIO Federal Building, Room 507 200 North High Street Columbus, OH 43215-2477 T: (614) 255-2500 F: (614) 255-2559

www.rudev.usda.gov/oh

SOUTH DAKOTA Federal Building, Room 210 200 4th Street SW Huron, SD 57350-2461 T: (605) 352-1100 F: (605) 352-1146

www.rudev.usda.gov/sd

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

USDA RURAL DEVELOPMENT STATE AND TERRITORY OFFICES 60

TENNESSEE 3322 West End Avenue, Suite 300 Nashville, TN 3 7203-1071 T: (615) 783-1300 F: (615) 783-1301 www.rudev.usda.gov/tn

VERMONT City Center 89 Main Street, 3rd Floor Montpelier, VT 05602-4449 T: (802) 828-6080 F: (802) 828-6018

www.rudev.usda.gov/vt

WASHINGTON 1835 Black Lake Blvd., SW, Suite B Olympia, WA 98501-5715 T: (360) 704-7740 F: (360) 704-7742

www.rudev.usda.gov/wa

TEXAS Federal Building 101 South Main, Suite 102 Temple, TX 76501-7651 T: (254) 742-9700 F: (254) 742-9712 www.rudev.usda.gov/tx

VIRGIN ISLANDS 4440 NW 25th Place Gainesville, FL 32614-7010 T: (352) 338-3400 F: (352) 338-3405 www.rudev.usda.gov/vi

WEST VIRGINIA 75 High Street, Suite 320 Morgantown, WV 26505-7500 T: (304) 284-4860 F: (304) 284-4893

www.rudev.usda.gov/wv

UTAH Wallace F. Bennett Federal Building 125 South State Street, Room 4311 Salt Lake City, UT 84138-1106 T: (801) 524-4320 F: (80 I) 524-4406 www.rudev.usda.gov/ut

VIRGINIA Culpeper Building, Suite 238 1606 Santa Rosa Road Richmond, VA 23229-5014 T: (804) 287-1552 F: (804) 287-1721

www.rudev.usda.gov/va

WISCONSIN 4949 Kirschling Court Stevens Point, WI 54481-7044 T: (715) 345-7600 F: (715) 345-7669

www.rudev.usda.gov/wi

WYOMING 100 East B Street, Room 1005 Casper, WY 82602-5006 T: (307)233-6700 F: (307)233-6739 www.rudev.usda.gov/wy

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

61

ACRONYMS

AgMRC Agricultural Marketing Resource Center

ARRA American Recovery and Reinvestment Act

ATTRA Appropriate Technology Transfer for Rural Areas

BCPAR Business and Cooperative Programs Assessment Review

B&I Business and Industry Guaranteed Loans

EA Energy Audit

GAO Government Accountability Office

GLS Guaranteed Loan System

HBCU Historically Black Colleges and Universities

IRP Intermediary Relending Program

MCR Management Control Review

OIG Office of Inspector General

OCS Oversight Resources Coordination Staff

OMB Office of Management and Budget

RBEG Rural Business Enterprise Grant

RBOG Rural Business Opportunity Grant

RCDG Rural Cooperative Development Grant

REAP Rural Energy for America Program

REDA Renewable Energy Development Assistance

REDLG Rural Economic Development Loan and Grant Program

RMAP Rural Microentrepreneur Assistance Program

Section 9003 Biorefinery Assistance Program

Section 9004 Repowering Assistance Program

Section 9005 Advanced Biofuel Payment Program

Section 9007 Rural Energy for America Program

SMP Small Minority Producer

SSDPG Small Socially-Disadvantaged Producer Grant

VAPG Value-Added Producer Grant

2011 RURAL BUSINESS-COOPERATIVE SERVICE ANNUAL REPORT

The U.S. Department of Agriculture (USDA) prohibits discrimination in all of its programs and activities on the basis of race, color, national origin, or age disability. USDA also prohibits discrimination based on sex (including gender identify and expression), marital status, familial status, parental status, religion, sexual orientation, political beliefs, genetic information, reprisal, or because all or part of an individual’s income is dreived from any public assistance program. Not all prohibited bases apply to all programs.

The mention of a company or brand name in this report does not signify endorsement by USDA over other companies, products, or services.