National Campaign for Sustainable Agriculture

Rural Cooperative Development Grants

Program Description

The Rural Cooperative Development Grant Program was established under the 1996 Farm Bill to provide grants to nonprofit corporations and institutions of higher education for the primary purpose of improving the economic condition of rural areas through the development of new cooperatives and improving operations of existing cooperatives. Emphasis is placed on those projects with high potential to improve rural business activity through the cooperative form of business.

This program offers technical assistance through regional cooperative development centers to establish rural cooperatives of all kinds, including programs pertaining to agriculture. Sustainable agriculture, organic production and marketing and value-added initiatives are eligible to compete for funding. The program emphasizes projects that build capacity for longer-term cooperative development.

Program Administration

This program is administered by the USDA's Rural Business-Cooperative Service.

Program Status

This is not a new program. It was established under the Federal Agriculture Improvement and Reform Act of 1996 (Farm Bill).

How the Program is Funded

The program is appropriated yearly. The farm bill authorizes Congress to fund the program up to $50 million.

Using the Program

An invitation for pre-applications for RCDG grants is published in the Federal Register each Spring. Current application information is available at http://www.rurdev.usda.gov/rbs/coops/rcdg/rcdg.htm

Criteria for Eligibility

Nonprofit corporations and institutions of higher education are eligible to receive grants. Grants may go to eligible recipients to form and operate centers for cooperative development—for providing education, research, and technical assistance to rural cooperatives and assisting the cooperative development process. Grants may be awarded for up to 75 percent of the total cost of the project. The applicant must contribute at least 25 percent from non-federal sources. Grants are awarded on a competitive basis and are based on specific selection criteria. These criteria are published each year in Federal Register notices.

Who to Contact

National Program Office: James E. Haskell, Assistant Deputy Administrator, Cooperative Services
Rural Business-Cooperative Services, Stop 3250, Room 4016 South Building
1400 Independence Ave S.W., Washington, DC 20250-3250
(202) 720-8460; fax, (202) 720-4641, Email:

Resources on the Internet

"Building Better Rural Places", description of the program: http://www.attra.ncat.org/guide/n_z/rcdg.html

USDA's Rural Business-Cooperative Service Page- http://www.rurdev.usda.gov/rbs/

Adapted from "Building Better Rural Places"