Order. Todays hearing marks the ninth hearing this year. Dedicating to listening to stakeholders on how our programs are currently working or need improvement as we work towards a a farm bill reauthorization by this congress. This includes taking a look at spending requests and proposals for 39 programs in the belt that do not have a budget baseline. Our committee must be mindful the very tough budgetary environment that we have to face. While it is a principle duty of this committee, to ensure the next farm bill provides our nations Agricultural Producers with the necessary tools and rories to feed a growing and hungry world, a responsibilities in the world of u. S. Day do not stop there. The it is also critical to support Rural Businesses and cooperatives and Health Clinics and schools, Renewable Energy and bio based product manufacturers and other essential Service Providers. We serve as the backbone of the communities our farmers and ranchers call home. Earlier this year, at our committees first field hearing in manhattan, kansas, home of the ever optimistic and fighting wildca wildcats, we had the opportunity to hear from a number of stakeholders that i believe share much of the same passion and commitment to Rural America today. To the witnesses, i apologize. We listened to the manager after the electric cooperative explain how well interests and Utility Services and loans make it possible for small cooperatives to provide rural candidates with afford bable and reliable energy. The producer smoke spoke about the Important RoleRenewable Energy plays in a new market demand for a number of mod xhodties important to all of our member states. And we heard a Rural Telecom provider discuss daily challenges she faces. The distinguished chairman has departed. With 3 million fewer people i hope todays conversation will provide opportunities to hear a broader perspective of the needs throughout farm country. For the rules Housing Service and business cooperatives. And america and provide an update on program functions. For our second panel, well hear from a broad set of stakeholders including representatives of cooperatives who work every day to provide essential utilities to farmer, ranchers and small towns across the country. A university professoren and chemical product development. Save on energy. Instructions today regarding the and hearing from witnesses needed to grow and thrive. Well, thank you very much, mr. Chairman for holding this hearing. This is such an important hearing to discuss issues that are so critically important to small towns and Rural Communities in michigan and kansas and all across the country. I want to welcome our witnesses today. Thank you for your work. Earlier this year, we held a hear iing to examine the state the farm and Rural Economy. There, we heard loudly and clearly those who work in Rural America are facing tough economic times, what we also learned is that there are ma many create good paying jobs. Rural communities to feel the effects of an economic on an improving economy. As a result, we should be make ing more investments. Looking ahead to the next bill, we need to think longterm. The Rural Development and Energy Titles that were discussing today have a wealth of opportunities. I grew up in one of those small towns in Northern Michigan and i know how important it is to have robust support for agriculture and business expansion. Its very personal for me. In order to for our communities to thrive, they need to be able to compete in the 1ist century economy. Improving access to high Speed Internet. Its one of the top ways to make sure that happens. Usda provides critical support and capital to expand broad band access. We need the to strengthen the tools b available to extend high Speed Internet to every corner of the country. We also need to continue investing in other forms of infrastructure. Its unacceptable that there are small towns that cannot afford to modernize their water systems. Small businesses need access to capital as well. While also offering new Employment Opportunities for the community at large. In michigan, agricultural and manufacturing are the heart of our economy. We dont have a middle class unless we make things and grow things. Instead of using petroleum, companies are creating new product frs american grown crops. The benefit is twofold. New markets for farmers and new jobs. Additionally, the farm bill invests in Renewable Energy, which also leads to job creation. There are now 92,000 Clean Energy Jobs in michigan alone. The popular energy for america helps producers and businesses lower their bills through installing Energy Systems an, making Energy Efficiency upgrades. And pay less that the at the pump. Its clear the opportunities we created, excuse me, in the 2014 farm bill are helping our small towns. Create jobs and support communities where parents want to raise their children, so as we begin work on the next bill, i look forward to building on that progress. To help Rural America reach its full potential. Thank you, mr. Chairman. Thank the senator. Mr. Chairman. In the event i cant get back or have a witness, is that possible if its on the second panel . I have a panelist today from south dakota. Incredibly capable general manager and Telecommunications Cooperative which is in wall, south dakota. My dad still lives there. Hell be 98 in december. He spends a lot of time wahoffing cable and the internet and probably one of my most informed and least paid constituents. Inevitably, he calls me to complain about whatever hes seeing that were doing. Golden west has been around for a long time and denny has a 27 year history in that industry all in south dakota. And what makes his current job as ceo of Golden West Telecommunications so challenging is his companys location in one of the most rural areas of the country. With ranch and farming operations positioned miles apart and often one to two hours from a larger city like rapid city. Yet hes managed to meet the challenges by developing reliable broad brand providing access for jobs, education and health care. Hes helped keep a large part of south dakota in charge of the Telecommunications Industry that most of us take for granted. Denny has served as general manager of sioux valley in south dakota. Went on to become the Eastern Region manager and served as ceo since 2008. Got a bachelors degree in science and journalism which means hes very conflicted when it comes to the football season. But i want to thank him for appearing before this committee and for sharing your recommendations on how this committee through the next farm bill can help you and your company improve access to broad band and rural areas. I thank you for that indulgence and appreciate having him here today. Thank you, senator. I know youre very busy and urge you to keep working on tax reform as a very important member of the finance committee. Especially on behalf of the roberts amendment as its known in south dakota or in today, miss ann serves as substantiate to the secretary for Rural Development. An indiana native. Ann has worked on agriculture and rural issues for over 15 years. She was the director of agriculture for her home state. She was an adviser to the governor at that time. She is a graduate of kansas state university. Graduating with a bash leadoff of science in agriculture. She holds a masters from the university of arkansas. The next witness is mr. Rich davis. He has been serving as deputy administrator for Community Programs and Rural Development since august of 2010. Th help improve facilities in rural areas. These include health care, school, Public Safety and a variety of other types. Sy, we thank you for your service and thank you for pg here today. Next is mr. Parker. Has worked development for more than 26 years and his current capacity, he manages a team that provides assistance to Rural Communities in areas of property development, research and education. Quite a list. Hard to pronounce u. Thank you for your service. The last witness is mr. Mcclean, acting director of the rural utilities service. Rus. He oversees the operations of the planning, policy and finance agency focused on rural, electric telecommunications broad band water and sewer systems. Thanks to the witnesses for being here today. Ann, why dont you kick off. Good morning. Im honored to discuss prosperity in Rural America, a passion i know i share with each of you today and a topic of critical importance as you write the next farm bill. Growing up in indiana, agriculture and small towns rb have been my lifes calling. Start ng the 4h program as a young girl, i followed by love of farming into college and law school so i could be an advocate for Rural America. Over the course of my career, ive been blessed to serve as counsel to the natricultural co. Ive had a chance to represent my home state. In each of these chapters, developed an appreciation for the role of policy and partnerships in assisting communities craft and execute a vision for their future. I have a deep respect for each of you as chief advocates for the interest of your state and understanding of the chals you face in writing a bill that will meet so many different needs. Conditions in many communities are incredibly challenging. Today, 85 of the poorest counties are in rural areas. When kids get older and look to begin their career, few come home to the towns in which they xwru up and in many small towns, theres not the access to Critical Infrastructure that folks need to stay connected to a modern economy. When we look at these challenges, we are asking what can we do to make a difference to help build prosperity . In answering that important question, i have found the best answers come from the ground outside of d. C. Just last week, i made a visit to olivia, minnesota, a small city that has recently built a day care, asking how the town had come to make this ward looking investment, i was told the reason was simple. When any sight slkter comes to visit, theyre looking for four things. Day care, high Speed Internet, good roads and rail access. We want to be a partner to communities like olivia in building prosperity. Through the farm bill, congress has p provied tded tools. Secretary purdue has set several priorities for the team. We are developing solutions for four key issues impacting Rural America. Quality of life, rural workfo e workforce, innovation and development. With these resource, we will be looking to work in strong collaboration with our many partners at the state and local level who are on the front lines making a difference in these communities. It is a necessity, not amenity. With that, a new Infrastructure Fund would offer a fund that would respond to the needs of Rural America such as broad band connectivity. Finally, we are focused on innovation. Finding new ways to assist communities in addressing the many challenges and opportunities they face. Led by an officer, this team will house several important functions. We help this will assist communities in developing sluss. I want to extend a heartfelt thank you for what you to each day to be a strong voice. As you move forward, we are committed to working with each of you to ensure that Rural America is a place of prosperity for generations the come. Thank you. Good morning members of the committee. I appreciate this opportunity to testify before you today. Let me begin by thank g congress for its ongoing support. The world Housing Service has made significant and transformtive investments to strengthen the nations small towns and Rural Communities. If program, a key part of the rhs portfolio, supports this mission by investing in critically need ed infrastructure. Our Program ProvidesRural America with access to much needed capital. Where Financial Options are are limited or nonexistent. In recent year, mohannad for the low cost longterm financing has surged and the direct program has experienced a nine fold inkrecrease in funding level. Continues to maintain a strong pipeline of projects for next year. The portfolio is 8. 8 billion with the majority in the World Health Care sector, education alpha silties, public buildings and safety infrastructure. The Financial Health remains strong and the direct loan program will have a negative credit subsidy rate in fis year 18. It also lends itself well to addressing Current Issues and challenges face Rural America. Rhs can play an Important Role in the crisis by streptenning the investment in Mental Health care and other facilities that provide treatment and recovery support. By supporting a wide range of day care including charter schools. A positive start will provide children with opportunities to further education and achievement. This Program Supports institutions to meet needs and physician and other skilled professional shortages across Rural America. In recent years as the size and complexity of our prokts has grown, facile to leverage critical financial project management, Technical Expertise and innovation to leverage large complex Community Infrastructure projects. As we move ford war, rhs the confident it will successfully implement the programs needed for a thrive v thriving Rural America. Thaupg for this opportunity to share with you how rhs expanding equal opportunity in Rural America through improve iing th quality of life. Thank you. We thank you, especially being on time. Mr. Parker. Good morning. Chairman roberts an members of the committee, thank you for this opportunity to discuss our programs through increasing access to capital and expabding the economy including bio fuels and Renewable Energy. They are at forefront improving lives. Our programs keep jobs in Rural America and help economies compete in a global marketplace. To date in 2017, the Rural Business cooperative service has successfully delivered 1. 7 billion in funding to Rural Americans. That helped 12,500 businesses create or save about 55,000 jobs. Our path forward is to focus on our able thety to efficiently and responsibly find Government Services that meet the needs of Rural Americans. The Service Remains committed to revitalizing communities by expanding Economic Opportunity, creating jobs and proving infrastructure and expanding markets for existing businesses in order to ensure a vibrant economy. We administer loan and Grant Programs that not only make capital available, but attract Investment Capital to rural areas that might not see such investments. The service is a leader promote ing the expansion of o projects and jobs in Rural America. We administer a suite of programs that promote a Sustainable Energy feature. The rural energy for America Program is our most successful program. Reap promoting development for Agricultural Producers and smaud businesses. In 2017 alope, reap will provide funding for other 100 projects with total costs over 1 billion and leverage nearly 18 times the amount of Budget Authority provided for the year. They provide Job Opportunities and enhances Educational Services that enable them to compete in a global economy. They create Job Opportunities and revenues are maintained and recirculating locally. One of the larnlest cooperatives is the value added. The grant funds may be uses for planning activi