The Department of Agriculture today announced the agency will be investing $192 million into a loan program that will allow private telecommunications companies to expand their operations in rural areas.
The announcement was made by Rural Utilities Service Administrator Jonathan Adelstein on the behalf of Agriculture Secretary Tom Vilsack, who noted the focus on the investment was to bring more broadband services to rural residents through the Department of Agriculture's Telecommunications Infrastructure Loan Program. The loans would ultimately bring thousands of miles of cable to telecommunications operations in eight states.
The $192 million in loans are part of a $690 million federal investment during the 2011 fiscal year. In addition, the federal government is putting $3.5 billion towards broadband funding under the American Recovery and Reinvestment Act (2009). Overall, the funding will help rural telecommunications upgrade equipment, afford better facilities, expand operations, and maintain and repair networks within their operations.
Vilsack released a statement on the announcement and the importance of expanding broadband operations into rural areas: "A significant portion of America still does not have adequate broadband for job and economic development activities. Working with our partners, including cooperatives and the telecommunications industry, USDA delivers broadband to rural areas, creating jobs and providing critical financial, educational and health care services. We've made a good start, but it is clear that the work of the Obama administration and USDA is far from done."
So far, eight rural telecommunications companies in eight states have been approved for loans by the Department of Agriculture's Telecommunications Infrastructure Loan Program. The largest loans include Farmers Mutual Telephone Company for 3 Rivers Telephone Cooperative, Inc. for $70 million in Montana, Coleman County Telephone Cooperative for $22.54 million in Texas, Molalla Telephone for $22.5 million in Oregon and Farmers Mutual Telephone for $18,205,000 in Iowa.
According to a news article from the Globe Gazette, Adelstein spoke at a local farm near Rudd, Iowa. The Rural Utilities Service Administrator emphasized the importance of bringing broadband communications technology, especially high-speed internet services, to rural areas of the country, specifically that expanding these types of operations would bring more learning, increased economic development, and innovation.
Adelstein said, "This is going to change life in rural America because now you'll have access. It's critical that we take care of all of rural America."
The USDA is encouraging residents to visit the agency's Rural Development website for more information about the loan program and other programs available.
Rachel Bogart provides an in-depth look at current environmental issues and local Chicago news stories. As a college student from the Chicago suburbs pursuing two science degrees, she applies her knowledge and passion to both topics to garner further public awareness.
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