WASHINGTON -- The Agriculture Department got only a down payment of $50 million to upgrade the USDA Farm Service Agency computer system in the economic stimulus package, but did better than expected in money for the expansion of high-speed Internet service in rural America.
At press time, Congress was expected to pass the package and President Obama was expected to sign it over the President's Day weekend.
The Agriculture Department has told lawmakers that USDA needs $245 million to modernize the FSA computer system. At the urging of House Agriculture Committee Chairman Collin Peterson, D-Minn., the House stimulus bill provided $245 million for the program. But Sen. Ben Nelson, D-Neb., who worked with Sen. Susan Collins, R-Maine, to cut the size of the stimulus bill, cited the computer system as one of those programs that was questionable. The Senate stimulus bill provided $54 million for the computers, but the final compromise between the House and the Senate provided only $50 million. Agriculture Secretary Tom Vilsack had defended the original $245 million proposal, but said Feb. 12 he would work with congressional appropriators to provide more money in other bills.
The bill provides a total of $7.2 billion for broadband expansion, with $2.5 billion going to the USDA Rural Utilities Service for grants, loans and loan guarantees and $4.7 billion to the Commerce Department National Telecommunications and Information Administration. Rural America is expected to benefit from the NTIA money, particularly a plan for the first comprehensive mapping of broadband availability throughout the country.
Vilsack said Feb. 12 he thought the amount going to USDA was cut because lawmakers were displeased that the Bush administration spent too much of the money in suburban areas. Vilsack said the money USDA is getting will create an opportunity for RUS to prove it can run the program.
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USDA also got $1.38 billion for rural water and waste disposal, $200 million to support loans and loan guarantees for rural housing assistance, $130 million for community facilities and $150 to support business loan guarantees and $290 million for flood prevention efforts, which Senate Agriculture Chairman Tom Harkin said would be of particular help to Iowa.
The biggest chunk of Agriculture Department money in the stimulus package will go for increases in nutrition programs, with $19.9 billion to provide a temporary increase in food stamp or supplemental nutrition assistance program benefits for 31 million families, $400 million for the Women, Infants' and Children's Program and $150 million for The Emergency Food Assistance Program, which buys commodities for food banks and institutions. Vilsack noted that studies show that every $5 in nutrition program spending creates $9 in economic activity, making it one of the most effective economic stimulus programs. The nutrition programs benefit all of agriculture by increasing demand at a time that lower income Americans have less money to spend.
