Rural development agency marks 70th anniversary of Matanuska Colony

May is a special month for USDA Rural Development, and for the families who came to the Palmer area during the great depression to start a new life.

Seventy years ago, on May 23, 1935, the Federal Emergency Relief Administration (USDA Rural Development's immediate predecessor) held a lot drawing for 202 families (with 500 children) from the upper Midwest who were to resettle here in the Valley. Under the plan, families received either 40- or 80-acre tracts to be paid for with 30-year mortgages.

As many longtime Valley residents know, the Matanuska Colony was one of 100 resettlement programs undertaken by the federal government. It wasn't easy. Over the first decade, 60 percent of the original colonists left. Families with farming experience took their places.

But the experiment that was started under the "New Deal" promised by President Franklin D. Roosevelt was a success, at least here in the Valley. The typical farm included a house, barn, well house and chicken coop.

Today, seven local farms are included on the National Register of Historic Places. The resettlement program forever changed the Valley.

The agency now known as "Rural Development" underwent a series of name and mission changes over the past seven decades as well. Starting out simply as a farm credit lender, in 1946 we became the "Farmers Home Administration."

Over the succeeding years, we saw our authority expand greatly, and with it so did our loan and grant volume. In 1960, it was $300 million (nationwide). Five years later, that amount more than doubled.

Our housing programs got a boost in 1968 when we were allowed by Congress to subsidize mortgage interest rates for income-eligible homeowners to as little as 1 percent. "Self help" housing also became a priority program.

As many Valley residents know, that program enables families to work together to build their own homes with their labor providing "sweat equity." In the past three years, we have worked with the Alaska Community Development Corporation to complete two of these initiatives: one at the Butte and the other at Settlers Bay. A third one gets under way here next month.

Eventually, the Farmers Home Administration was reorganized and became USDA Rural Development. It is the only federal agency that can literally build a community from the ground up.

In fiscal year 2004, in Alaska alone, we provided in excess of $150 million in loans and grants for community facilities, housing, business and infrastructure programs. Our housing volume (all programs) approached $49 million, and for the second year in a row we were fourth in the nation among Rural Development offices in business- and industry-guaranteed loan volume.

Working with our partners, Rural Development has funded area projects including the Wasilla Senior Center kitchen, the Sunshine Clinic and Valley Hospital's sewer and water line. We also guarantee or make hundreds of home loans a year across Alaska.

As important as Rural Development is to Alaska, we did not get a full-time "state" office in Palmer until August of 1978. Former President Jimmy Carter appointed our first Alaska State Director, former Anchorage Mayor John R. "Jack" Roderick. Our current state director, Mat-Su Borough Assembly member Bill Allen, was appointed just over four years ago by President George W. Bush.

Today, Rural Development has a statewide staff of 42 and a majority of them work here in Palmer. Even though we turned 70 this month, we remain an energetic, results-oriented agency. We have a reputation for getting things done.

In the coming years, we pledge to do even more to become a daily part of the lives of the residents of the Mat-Su Valley and Alaska as a whole.

Palmer resident Frank Muncy is a 28-year Alaskan. Much of that time has been spent with USDA Rural Development, for which he serves as assistant state director.