White House Rural Council to invest $10 billion for job-creation
- Last Updated on Friday, 25 July 2014 07:49
- Written by Madeline Robinson
The White House Rural Council today announced the creation of the new U.S. Rural Infrastructure Opportunity Fund through which private entities can invest in job-creating rural infrastructure projects across the country. An initial $10 billion has been committed to the fund with greater investment expected to follow. Target investments will include hospitals, schools and other educational facilities, rural water and wastewater systems, energy projects, broadband expansion, local and regional food systems, and other rural infrastructure.
CoBank, a national cooperative bank serving rural America and a member of the Farm Credit System, is the fund's anchor investor, committing $10 billion to get the fund off the ground. Capitol Peak Asset Management will manage the new fund and work to recruit more investors to add to CoBank's initial commitment. The U.S. Department of Agriculture (USDA) and other federal agencies will help to identify rural projects that could be potential beneficiaries of financing through this new fund and other private sources.
The creation of the new fund was announced during the first-ever White House Rural Opportunity Investment Conference in Washington, D.C. The conference brought together business and financial community leaders, Administration and other government officials, rural development experts, and others to promote investment opportunities in America's rural communities.
"This fund represents a new approach to our support for job-creating projects across the country," said Tom Vilsack, U.S. Department of Agriculture Secretary and Chair of the White House Rural Council. "USDA and other agencies invest in infrastructure through a variety of federal initiatives, but our resources are finite and there are backlogs of projects in many parts of the economy. We know where investment opportunities exist, so we are in a position to help promote these projects among investors. With new efforts like this we can move beyond existing programs and help encourage substantial private investment in projects that grow the economy and improve quality of life for millions of Americans."
The Rural Infrastructure Opportunity Fund will allow America's rural economy to continue its forward momentum by enhancing access to capital for rural infrastructure projects and speeding up the process of rural infrastructure improvements. The fund is immediately open for business and more investors can now add to the initial $10 billion in available capital.
The fund will allow a wide variety of new participants, including pension funds, endowments, foundations, and other institutional investors that have not traditionally had access to these markets to invest in rural development. In some cases, projects may be funded entirely through private sector dollars. In others, private dollars may be leveraged with and extend critical government loan and grant programs.
The new Rural Infrastructure Opportunity Fund and the White House Rural Council's Rural Opportunity Investment Conference are part of the Obama Administration's ongoing efforts to spark additional private investment in rural communities through private sector sources or through public private partnerships like the new fund announced today. For example, USDA announced the $150 million Rural Business Investment Company earlier this year, which allows the Department to help facilitate private equity investments in innovative agriculture-related businesses. Vilsack said today that more investment vehicles such as this are in the pipeline, and other efforts to continue promoting private investment in rural areas will be announced later this year.
"Meeting the world's needs for food and farm products, as well as the growing demand in areas like renewable energy, local food, and the bioeconomy will require continued investment in rural places," Vilsack said. "Many major investors in urban centers aren't always aware of the significant investment opportunities in rural communities. If the White House Rural Council can help facilitate even a small portion of the enormous amount of available investment capital into rural places, we can grow key industries and create jobs in rural and urban areas from coast to coast."
Article courtesy of Drover's CattleNetwork