Investment fund created to draw money to rural America | Food and Environment Reporting Network

The White House announced creation of a $10 billion Rural Infrastructure Opportunity Fund to draw private investment into projects in rural America. The government will identify projects in need of financing and could provide a part of the funds itself or could let private investors handle it entirely. “This is a new way for us to do business,” said Agriculture Secretary Tom Vilsack. “The point of this is building a network.” Announcement of the fund coincides with the final day of a rural investment conference.

CoBank, based in Denver, already a leading rural lender, committed the money for the fund. Capital Peak Asset Management will manage the fund and seek additional investment. The White House said the fund could appeal pension funds, endowments, foundations and other institutional investors. “The whole idea is to match projects with investors,” said CoBank president Robert Engel.

Target investments include community facilities such as health care and educational facilities, rural water and sewer systems, rural power supplies, rural broadband and local food systems. USDA offers $38 billion a year in loans, grants and loan guarantees to business, housing and utility projects in rural America.