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Highlights of progress as of June 30, 1970, in several projects representative of the 55 that were in operation as of that date are as follows:

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Wiregrass, Alabama: This project has been in operation almost three years with 116 of the 203 project measures completed and in operation. The most outstanding accomplishments to date in addition to erosion control measures, include new water and sewage projects, new industry, and recreational developments. There are forty communities with new or expanded water and sewage projects and thirty recreational developments have been completed.

Two special areas of interest in the Wiregrass is the production and marketing of channel catfish and the improvement of woodland resources. There are now about 165 pond owners growing catfish with a total acreage of about 1,500. One processing plant is operating in the area and interest is growing for another. A group of catfish producers in the project area are now in the process of organizing a catfish producers association.

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Resource Conservation and Development projects provide a base for people to come together to plan and carry out actions that will improve their community. These photographs show the streambed before and after a flood control measure in Sebree, Kentucky, in the Trade Water River Area.

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Landowners in Henry County interested in improving their woodland resources have organized the Henry Forestry Association. They have almost 100 members and have 1,450 acres of marginal land signed up for chopping and planting to pines this fall. The Farmers Home Administration has approved an RC&D loan for the association to purchase a rolling chopper and a heavy duty tree planter. This special purpose equipment will be rented to association members.

Another important asset to the project area is the growing interest in vegetable production. The big crop is tomatoes. Between 4,000 and 5,000 acres of tomatoes were grown this year and marketed through six markets, three of which have just been completed. In addition to tomatoes, these markets handle peas, watermelons, turnips, cabbage, pepper and a number of other vegetables.

Ozark Foothills, Arkansas: There are 113 active project measures underway now, of which 61 are completed or in the process of being completed. Project sponsors have activily engaged in working with local groups to accelerate water resource developments in the project area.

Among the outstanding project accomplishments is the starting of the Fry Kellow Flood Control and Agricultural Water Management Project. This project covers 18,800 acres, and will directly benefit 89 farm operators and 1,200 residents of the towns of Waldnut Ridge and Hotie, Arkansas. This project measure is becoming a reality because of the effort of the local people assisted by the Farmers Home Administration and Soil Conservation Service.

WesMin, Minnesota:

The project committee continues to identify new project needs and opportunities. There are 175 active project measures underway now of which 63 have been completed.

A fisheries renovation project measure involved improving 30 miles of stream, five lakes and twelve waterfowl marsh areas. It removed an overpopulation of undesirable fish and improved conditions for game fish and recreation. Lake residents report exceptionally good results and water quality has been greatly improved.

The Lake Florida improvement measure is a fine example of total cooperation between individuals, a lake association and all levels of government from township to federal. The proposal stabilized the lake level preventing bank erosion, flooding of septic tanks, the loss of beach area, preserved a waterfowl area threatened with drainage, and reduced agricultural flooding.

The Benson alfalfa dehydrator was built when 78 local farmers and nonfarm people bought $60,000 of debentures to match the SBA loan for the construction of the $300,000 plant. The production of 6,000 tons of meal and pellets, most of which is used locally as turkey feed, has increased employment and farmer income. Since dehydration requires large amounts of natural gas, this plant was a key to bringing natural gas to about 12 different communities in this area.

One of the major agricultural development lefforts is in the Bonanza Valley where irrigation development is expanding this year. New crops and markets are being tried.

Among these are snap beans, cucumbers, table beets, potatoes, and sweet corn.

A research farm for use by ARS and the University of Minnesota has been purchased with local funds. Throughout the project area about 125 farms, that were not irrigated 6 years ago, are now being irrigated.

Northern Rio Grande, New Mexico:

This project area encompases 4,432,366 acres in north central New Mexico. The sponsors have reviewed 330 proposals for project measures of which 103 have been completed.

Eighty-one irrigation ditch systems have been improved at a cost of over $2.0 million An additional 221 ditch systems are in need of improvement.

Duke City Lumber Company has completed construction of a production mill and allied facilities in the Espanola community. Estimated cost of this construction is 1.0 million dollars. Financing of this wood processing industry was totally from private funds. Between 150-165 local people are employed in the mill and logging operations. Except for special skill jobs, all employed people are local. An economic impact study made in 1970 indicates that this RC&D project measure added 3.2 million dollars to the economy of the area. The company established a small sawmill operation away from the main operation to provide employment to local people.

A farmers market has been established in the town of Los Alamos. This market provides additional income opportunities for the Spanish American farmers in the fertile Espanola Valley by furnishing fresh vegetables to the residents of this scientific community.

The project serves as a catalyst for other needed local development activity. This includes homes for the aged, technical training schools, control of pollution, local fire departments, and beautification of industrial parks.

Mountain- Dominion, West Virginia: The project sponsors continue to assist local groups in identifying and carrying out their project measures as of June 30, 1970. The project plan included 96 project measures of which 39 are completed and in operations, 15 are being installed, and 39 are being planned and investigated. Construction is now underway on the Jumping Branch-Nimitz Project Measure. When completed, this project measure will provide municipal and industrial water, flood control, and recreation for the people of the area. The project was made possible through the effort of the local people with assistance from USDA agencies. SCS is providing technical assistance and cost sharing on flood control. loans and grants for other phases in the project. FHA is providing Associated with this impoundment

will be a water distribution system and sewage disposal plant for Nimitz (population approimately 200). This project will provide water and flood protection necessary for the town of Nimitz to grow, expand, and prosper in an orderly manner.

RESOURCE CONSERVATION AND DEVELOPMENT LOANS

The following table shows the amount of funds obligated for loan services in fiscal year 1970 and estimated for 1971 and 1972:

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Loan services must be provided from Resource Conservation and Development funds because the Direct Loan Account of the FHA is not available for such expenses. Estimates for each fiscal year are based on the servicing workload which is available in the table on status of loans appearing below.

Status of Resource Conservation and Development Loans

Loans are made to local sponsoring organizations and to individuals when needed to help them finance the local share of the cost of installing planned project measures in approved resource conservation and development areas. Loans encourage increased investment of private and other governmental funds in resource development.

The Appropriation Acts of 1970 and 1971 provided that loans would be made from funds available in the Farmers Home Administration direct loan account. The prior-years unobligated balance of $162,050 that was appropriated for loans under the resource conservation and development item was obligated for loans in fiscal year 1969. All

loan funds in 1971 and 1972 will be made available from the direct loan account, FHA. Funds for loan services will continue to be provided from funds appropriated under this appropriation item.

The following tabulation shows the status of loans in the Resource Conservation and Development Program:

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Obligations are not adjusted for prior year loan cancellations.

Includes funds from FHA direct loan account and carryover funds appropriated to Soil Conservation Service.

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