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USDA Channels $89M to Bolster Rural Tennessee Utilities and Education

The USDA will invest $89 million in rural Tennessee to strengthen electric co-ops, utility infrastructure, and vocational education. A strategic move for rural growth and ag resilience.

AgroLatam USA
AgroLatam USA

The U.S. Department of Agriculture has announced a $89 million investment package-primarily through low-interest loans-to modernize infrastructure in rural Tennessee. The initiative targets electric utilities, clean water systems, road improvements, and technical education to support long-term resilience in agricultural communities.

Powering the Grid for Ag Productivity
A significant portion of the funding-$64.7 million-will go to Duck River Electric Membership Corporation, an electric cooperative based in Shelbyville that serves nearly 83,000 customers across 17 counties. The funds will help build or upgrade 239 miles of electric line, bringing power to more than 7,200 new customers. These improvements are expected to enhance on-farm energy reliability, reduce input costs, and support precision agriculture systems.

Water, Streets, and Emergency Services
The remaining $24.3 million will be distributed among key infrastructure projects across the state:

  • Montgomery County: $2.3M for extending water lines to 70 rural homes

  • Clay County: $2M for road resurfacing in Celina

  • Marshall County: $2.75M for a new 911 emergency dispatch center

  • Knox County: $5.4M for wastewater system upgrades

  • Polk County: $1.26M (combined grant and loan) to expand water access and pumping capacity

  • Sevier County: $713K to replace aging wastewater lines

  • McNairy County: $1.6M to upgrade a jail pump station and avoid wastewater backup

  • Houston, Dickson, and Fayette Counties: $30K each for engineering and planning studies under the SEARCH grant program

These updates will enhance sanitation, water security, and disaster readiness-foundational services for sustainable rural living and agricultural operations.

Expanding Education for the Rural Workforce
USDA funds will also support two rural schools expanding their technical and early childhood programs:

  • Life Christian Academy in Sumner County will receive $3.4 million to expand its early education program through fifth grade

  • Ivy Academy in Hamilton County will use $5.1 million to construct a career tech center focused on mechanical, electrical, plumbing, and automotive trades

These initiatives aim to equip rural students with skills aligned with ag-mechanical services and on-farm infrastructure support, reinforcing the rural economy.

Policy Moves and Federal Cuts
While in Tennessee, Agriculture Secretary Brooke Rollins also announced an end to solar panel subsidies on agricultural land and defended more than $31 million in cuts to agricultural research at the University of Tennessee Institute of Agriculture. One defunded initiative was a $30 million climate-smart livestock program focused on beef, dairy, and small ruminants.

Rollins said the reallocation of funds reflects a focus on "putting farmers first," directing federal dollars toward infrastructure and workforce development rather than projects misaligned with the administration's priorities.

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