National Forest-Dependent Rural Communities Program

Thousands of small towns across the American West, South, and Appalachia have economies built around the National Forest System — timber harvesting, recreation, and the ecosystem services that federal forests provide. When forest policy changes, court orders restrict logging, or timber markets collapse, these communities face economic crises with few alternatives. For complementary rangeland management programs, see USDA rangeland research. 7 U.S.C. §§ 6611–6617 establishes a USDA program to help economically disadvantaged rural communities near National Forest System lands plan and implement economic diversification strategies — reducing dependence on a single forest-based industry while building more resilient local economies.

The program works through rural natural resources and economic diversification action teams — USDA-organized expert groups that help qualifying communities assess their economic situation and develop concrete diversification plans, backed by federal technical assistance and loans to implement those plans.

Current Law (2026)

Legal Authority

• 7 U.S.C. § 6611 — Findings and purposes (rural communities near National Forests often have narrow economic bases, especially timber; program helps these communities improve, diversify, and revitalize their economies)
• 7 U.S.C. § 6612 — Definitions (action team, economically disadvantaged rural community, forest product, National Forest System, Secretary)
• 7 U.S.C. § 6613 — Rural natural resources and economic diversification action teams (eligible communities may request assistance; Secretary may form action teams to develop economic diversification plans)
• 7 U.S.C. § 6614 — Action plan implementation (plans implemented to help existing industries use natural resources more efficiently and grow rural economies to rely less on National Forest System land)
• 7 U.S.C. § 6615 — Training and education (Secretary may use NIFA and other USDA agencies to create education programs for rural residents, businesses, and officials)
• 7 U.S.C. § 6616 — Loans to economically disadvantaged rural communities (Secretary may lend money for technical assistance and action plan implementation, including fixing or expanding infrastructure)
• 7 U.S.C. § 6617 — Authorization of appropriations (up to 5% of timber and forest product sale receipts and user fees)

How It Works

Who Qualifies

An economically disadvantaged rural community in this program context is a rural town or community that depends on National Forest System lands for its economic base — particularly through timber harvesting, milling, and associated forest industries — and faces economic hardship because of changes in forest management, logging restrictions, timber market conditions, or other factors affecting forest-product revenues.

The program focuses on communities near National Forest land — not just anywhere in timber-producing states, but places where the National Forest itself is the primary economic driver and where federal land management decisions directly affect local employment and tax revenues.

The Action Team Process

When a qualifying community requests assistance, the Secretary of Agriculture may form a rural natural resources and economic diversification action team — a group of USDA experts and potentially other federal, state, and local specialists who work with the community to:

1. Assess the current economic situation — what industries exist, what natural resources are available, what economic trends are affecting the community
2. Identify diversification opportunities — ecotourism, value-added wood products, non-timber forest products, small business development, recreation services, specialty agriculture
3. Develop a concrete action plan — specific steps, investments, training, and infrastructure changes needed to diversify the local economy
4. Support implementation — technical assistance, loans, and education programs to help the community execute the plan

The goal explicitly is to help communities become less dependent on National Forest System land — not to increase logging, but to build economic capacity that doesn't rise or fall with federal timber sale volumes.

Training Through Extension

The NIFA and other USDA education programs funded under § 6615 help rural residents, local business owners, and government officials in forest-dependent communities understand new economic opportunities — ecotourism business development, forest product diversification, small business formation, grant writing for economic development programs. Extension educators can bring practical training to communities that may have been dominated by a single employer or industry for generations.

Loan Authority

The Secretary can lend money to qualifying communities for technical assistance and action plan implementation — including infrastructure improvements that support diversified economic activity. This loan authority complements the planning and technical assistance components, providing capital for communities that may lack access to conventional financing for economic development projects.

Funding from Forest Receipts

The program draws its funding authority from National Forest receipts — up to 5% of the money generated by timber sales, grazing permits, recreation fees, and other uses of National Forest System lands. This ties the program's resources to the very activities that have historically dominated these communities' economies, creating a direct link between forest revenue and community economic adaptation.

How It Affects You

If you live in a rural community near a National Forest that has experienced mill closures or logging restrictions: Your community may qualify for action team assistance under this program. Qualifying communities receive a team of USDA Forest Service, Rural Development, NIFA, and other experts who will conduct an economic assessment, identify diversification opportunities, and develop a concrete action plan — at no direct cost to the community. Places like Coos Bay (Oregon), Hayfork (California), and communities in the northern Rockies that saw sustained timber volume declines have used federal programs like this to plan transitions toward recreation economies, wood products diversification, and small business development. The key first step: contact your local USDA Forest Service Regional Office or your state's Rural Development office to ask about eligibility and the action team request process.

If you're a local elected official or county administrator in a timber-dependent community: This program delivers something small rural governments rarely have access to — dedicated federal economic planning expertise. A county with 3,000 residents and a part-time administrator doesn't have the staff or budget to hire economic consultants, commission feasibility studies, or apply for multiple grant programs simultaneously. The action team process brings that expertise directly to the community, identifies which USDA programs and loan authorities the community qualifies for, and helps prioritize investments. The loan authority under § 6616 can fund infrastructure improvements that support economic diversification — broadband, industrial park development, recreation facility upgrades — that the community couldn't otherwise finance.

If you're an entrepreneur or small business owner in a forest-dependent community: The program's shift toward economic diversification creates opportunities for businesses that can serve communities moving beyond dependence on industrial-scale timber. Recreation outfitters, guide services, specialty wood products manufacturers (cutting boards, furniture, custom millwork from sustainably harvested timber), agritourism operators, and remote-work service businesses (co-working spaces, reliable internet) are all categories that diversification plans frequently identify as growth opportunities. NIFA extension programs funded under § 6615 can provide business development training, marketing assistance, and connections to financing sources.

If you're a wildfire-affected community: Wildfire has dramatically changed the economics of forest-dependent communities in the West. Beetle kill and drought have produced millions of acres of dead and dying timber that creates fire risk but is often commercially unviable to harvest under existing regulations and market conditions. Wildfire itself disrupts recreation economies that many communities had shifted to as timber declined. Communities recovering from wildfire may qualify for this program's assistance in planning economic rebuilding that accounts for the changed forest conditions — including opportunities in post-fire restoration contracting, biomass energy, and modified recreation economies.

State Variations

The National Forest-Dependent Rural Communities program is federal, administered through USDA Forest Service regional offices. State forestry agencies, state rural development programs, and local economic development organizations may offer complementary programs. Oregon, Washington, Idaho, Montana, Colorado, and other western states with significant National Forest acreage have state programs that can work alongside federal action teams.

Pending Legislation

No major pending legislation specifically targeting this program as of April 2026. The broader debate about National Forest management — timber volumes, environmental reviews, old-growth protections — directly affects the communities this program serves, making forest policy reform a constant background issue for forest-dependent community economic development.

Recent Developments

The 2020–2025 period saw accelerating forest policy tensions in the West: increased wildfire risk and beetle kill changed the economics of timber in many regions, while litigation over old-growth logging and endangered species habitat continued to reduce available timber volumes in some National Forests. Communities in eastern Oregon, the Sierra Nevada, and the northern Rockies that had relied on USDA action team programs for diversification assistance reported mixed results — some successfully developing recreation economies, others struggling to replace industrial-scale employment with smaller-scale alternatives.