There’s a $6 billion funding gap in essential infrastructure needed in rural communities. That’s according to Jase Wagner, CEO of Compeer Financial. Since 2006, the farm credit cooperative has been working on pilot projects to show how new partnerships and funding bridge what’s needed.
One of its latest example projects is at Lafayette Hospital + Clinics in Lafayette County Wisconsin (and the only county-owned hospital in the state) where a 84,000 square foot facility was built to double the size of its previous hospital.
“At Compeer Financial, we are a part of the farm credit system, which has consistently supported rural communities and agriculture,” Wagner says. “As we’ve looked at the trends and environment around rural communities recently, they need an extra boost of support.”
Its pilot projects have included critical access care hospitals, nursing homes and assisted living facilities.
To enable the project in Wisconsin, Compeer Financial partnered with the regional Clare Bank and USDA to secure a $50.87 million financing package.
“We are ecstatic to introduce our region’s residents to our new Lafayette Hospital + Clinics, formerly known as Memorial Hospital of Lafayette County,” said Marie Wamsley, CEO of LHC in a press release. “The facility upgrades the technologies and services we’re able to offer our patients and the region’s healthcare providers, and the new location gives us room to grow. We’re grateful for the partnership with Compeer Financial in helping secure funding so we can continue to provide our rural community with the comprehensive, around-the-clock medical care it has relied on for more than 70 years.”
Citing a pattern of success with its pilot projects, Compeer is supporting legislation called The Investing in Rural America Act, which could be part of a “Skinny Farm Bill” in the near-future.
“We need to provide more permanent financing and long-term support for this market. Agriculture needs rural communities as much or more than rural communities need agriculture,” Wagner says. “The Investing in Rural America Act is a targeted bill to allow us to invest in a subset of essential community facilities. It’s primarily focused on health care, but also includes libraries, community centers, and other gathering places for communities.”
Another project currently underway is in Galena, Ill., as Compeer led a $25.75 million financing packing to expand and renovate Midwest Medical Center. This project will bring new medical providers and services, a new fitness center and new infusion clinic.
Wagner explains the nationwide $6 billion gap is the result of decades of underinvestment to keep essential facilities up-to-date across rural America.
“When we see these turn over and get new facilities in town, it’s just amazing,” he says. “It’s a rebirth kind of energy. The ability to hire people goes way up, and the ability to have good care in these areas goes up, which creates its own rural prosperity.”
Wagner is optimistic in a fly-wheel effect with cooperation across a coalition of institutions.
“As we prove this out, we can get a broader set of investors investing in rural America, which then really helps everyone. Rural America is such an essential part of the overall operation of the United States, and I think people understand that more and more, but you need to invest in it in order to make it stay that way.”
