US Department for Agriculture awards $4.2m to co-op development

Only nonprofit institutions can apply for funding under the programme, which allocates up to $1m per project

Co-op development centres across the US have received US$4.2m in funding for the 2025 fiscal year through the US Department of Agriculture’s Rural Cooperative Development Grant (RCDG) programme.

Initial uncertainty over the future of the programme, which was reviewed to ensure it aligns with the Trump administration’s priorities, prompted a flurry of advocacy work from the sector. This has been followed by the release of funding ahead of the 30 September expiration date for the programme’s funds. Only nonprofit institutions can apply for funding under the programme, which allocates up to $1m per project.

Successful applicants include the Cooperative Development Foundation, the California Center for Cooperation Development, the Cooperative Development Institute and the North Dakota Association of Rural Electric Cooperatives.

RCDG provides grants to co-op development centres established through nonprofits or institutions of higher education to improve the economic condition of rural areas by helping individuals and businesses start, expand or improve rural co-ops.

“Continued investment in federal programmes to support co-operative development would not be possible without the tireless advocacy of the cooperative business ecosystem,” said the National Cooperative Business Association (NCBA Clusa).

Launched in the early 1990s as part of the Farm Bill, RCDG has been awarding funding to co-op development since 1993, being the country’s programme dedicated to advancing cooperative businesses, funding start-ups and expanding co-ops in rural areas.

Historically administered by the Rural Business Cooperative Service within USDA, since January RCDG applications have fallen under the responsibility of the National Institute of Food and Agriculture (NIFA). The institute is now welcoming written feedback on the process from applicants at [email protected] using the subject line “Response to the RCDG RFA.”

The list of applicants awarded funding was released on 26 September, just days ahead of the US government shutdown on 1 October prompted by Congressional deadlock over the federal budget.