Financing rural America : a conference summary

After a steep recession in the 1980s, many rural places are mounting a strong economic comeback in the 1990s. Reflecting the economic turnaround, more people are moving to rural areas. Notwithstanding the improved rural economic picture, rural leaders remain concerned about rural America's economic future. Chief among these concerns is gaining access to capital to fuel continued growth. ; Many rural communities, especially those traditionally tied to agriculture, are trying to diversify their economic base, and capital is needed to finance new businesses. Housing is in short supply, and many communities are seeking to finance affordable housing. And public infrastructure, such as water and sewer systems, is in need of refurbishment in some communities and expansion in others, pointing to additional capital demands. ; While capital demands mount, questions linger about the adequacy of rural capital markets to meet those demands. To address this concern, the Federal Reserve Bank of Kansas City sponsored a conference entitled \\"Financing Rural America\\", in Omaha on December 4-5 1996. In this article, Drabenstott and Meeker review the importance of capital to the rural economy, discuss some apparent shortcomings in the markets, and summarize the options for improving them presented at the Omaha conference.