Loebsack touts USDA Rural Development programs during Ottumwa visit

Feb 6, 2010 — Ottumwa Courier

Cindy Toopes

Feb. 3, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- OTTUMWA -- Congressman Dave Loebsack knows rural Iowa needs help.

That's why he's on the road doing USDA Rural Development Roundtables with USDA Undersecretary Dallas Tonsager. More than 30 people filled City Hall's council chambers Tuesday afternoon to listen and ask questions.

Loebsack said the roundtable would offer information "on USDA programs that communities can utilize to assist with economic development and job creation."

"It's important to gather folks and find out their concerns," he said. "USDA Rural Development has 42 programs that can help."

Loebsack then asked Tonsager to explain some of the programs and procedures. The congressman also said Tonsager was "a farmer in South Dakota and did great work with cooperatives."

Tonsager said the USDA has 500 office sites and 6,000 employees. He works with Tom Vilsack, a former Iowa governor and now U.S. Agriculture Secretary.

Two questions have emerged from the last decade, according to Tonsager.

"How do we invest in our communities, the infrastructure and schools? How do we invest in ourselves?" he said. "One way was biofuels, which helped the economy and gave us markets. We have the opportunity to invest in local communities and USDA has programs with a wide range of assistance, from building a large generating station to fixing a house roof."

Loebsack said officials may have to "raise the minimum balance" because Ottumwa's population is "too high for rural housing."

Former Ottumwan Jeff Heland of Burlington said his city is too big to qualify for USDA's help.

For a growing community, Loebsack said "there are consequences, such as not getting help."

Heland agreed there were a number of consequences, "such as being underfunded for 9-1-1 agencies."

"We can see that happening with our First Responders," Heland said. "We bump into not even having matching funds or the people to do the grant applications. And, there are aging issues. Do you have grants for nursing homes?"

"No, just loans," Tonsager said.

Shirley Stacey, mayor of Eldon, wanted to know what's available to attract business to her town.

"I've had inquiries from a meat processing business," she said. "I want more than a post office, a grain dealer and gas station in Eldon."

Loebsack said he was sure "putting the American Gothic House sign on the highway has attracted many travelers."

"Yes, we do pull them in off the road," she said.

Ottumwa Mayor Dale Uehling said the U.S. Environmental Protection Agency (EPA) has rules and places like Eldon and Eddyville, or other communities with lagoons, will be required to treat storm-water runoff.

"It's disastrous for small, rural communities," he said. "And I have concern for livestock farmers due to the EPA's rulings."

REAP is one of the USDA programs is fairly well known in Wapello County. The acronym stands for "Rural Energy for America Program." The objective is to "purchase and install renewable energy systems and make energy efficiency improvements; and, do stand-alone feasibility studies."

Approved REAP applicants are ag producers and small businesses. Funding is through grants, loan guarantees and eventually direct loans.

Loebsack said broadband for rural residents is important and he hopes people will pursue it. The USDA's program is "Rural Broadband Loan and Loan Guarantee."

"Access to the Internet is critical to get," he added.

While seated with Loebsack and Tonsager, Randy Campbell also answered questions. He's the area director for USDA Rural Development and he covers Appanoose, Davis, Lucas, Jasper, Mahaska, Marion, Monroe, Poweshiek, Wapello and Wayne counties.

To find out more about USDA Rural Development programs, contact Area Director Randy Campbell, (641) 932-3031; or, go online to www.rurdv.usda.gov/ia

Newstex ID: KRTB-0395-41838327