Farm Energy

Farm energy solutions are helping more American farmers, ranchers and rural small businesses realize new income and savings opportunities this year, while reducing carbon pollution and helping our environment. REAP is “Exhibit A” in how farm energy can both slash carbon pollution and create economic opportunity for agriculture.

To help meet the fast-growing interest in farm energy, Congress allocated a total of $60 million for REAP in FY2009, and more funding is possible next year. Even so, demand for REAP’s funds far exceeds available funding.

This year, USDA announced record awards for 2009 for the Rural Energy for America Program (REAP). USDA awarded these funds as grants and loan guarantees to over 1,500 farmers, ranchers and rural small businesses across the country for renewable energy and energy efficiency projects. (more…)

Groups Unite for Improved Clean Energy Bill

September 10, 2009 – A diverse coalition of energy, agricultural and environmental groups called on the Senate Agriculture Committee to improve clean energy legislation by investing the revenue from carbon pollution allowances into programs that stimulate low carbon agriculture-based energy.

Low carbon ag-energy solutions include both energy efficiency improvements for farms and ranches and renewable energy projects such as wind turbines, solar panels, biomass (including biomass combined heat and power) and geothermal heating and cooling systems. Energy efficiency saves money for farmers, ranchers and foresters and reduces global warming pollution very quickly. All of these modern technologies reduce carbon pollution and are well-suited for agricultural applications.

The proposal would provide incentives without increasing taxes. Instead, the proposal uses proceeds from the sale of carbon pollution allowances and invests that money into initiatives that reduce carbon pollution and create new savings and income for rural America. The allowance trading system is part of a market-based system that can reduce global warming pollution at the lowest cost.

“American agriculture can and should lead the way to drastic carbon reductions, but we need policies like these to jumpstart the pace of clean energy implementation,” said Andy Olsen, Senior Policy Advocate for the Environmental Law & Policy Center (ELPC).

“Investing allowances to stimulate clean energy development is a textbook example of sound policy to cut carbon pollution and should be part of any agriculture package,” said Kerri Johannsen, Policy Advocate for ELPC.

“Agriculture can be a net winner in the climate bill,” added Olsen. “Expanding low carbon ag-energy initiatives is good for agriculture, good for rural economic development and good for fighting climate change.”

You can find the letter, including all the supporting groups, here.  See also the ELPC fact sheet that discusses why these programs are a great fit in the climate bill and how they can benefit farmers, ranchers and forest owners across the country.

Another key funding victory for the Farm Bill Energy Title! On August 4, 2009, the full U.S. Senate passed the FY 2010 Agriculture appropriations budget. The Senate’s budget doubles total REAP funding by adding an additional $68.1 million in discretionary funding, and boosts the Biorefinery Assistance Program funding by $17.339 million. The Senate’s vote endorsed the earlier Senate Appropriations Committee’s FY 2010 budget proposal.

By adding $68.1 million in discretionary funding, the Senate’s proposal would boost total REAP funding for next year to $128.1 million ($60 million in mandatory funding + $68.1 million in discretionary funding).

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FOR IMMEDIATE RELEASE

July 8, 2009

Late yesterday the US Senate Committee on Appropriations voted to boost funding for farm energy programs that will create more clean energy and new income for rural Americans.

The committee voted to increase fiscal year 2010 funding for the Rural Energy for America Program (REAP) from $60 million to $128 million. The REAP program helps farmers, ranchers and rural small businesses build their own clean energy projects. REAP provides grant and loan guarantee assistance for a broad range of clean energy technologies including biomass, manure digesters, wind and solar power, and energy efficiency.

Wisconsin Senator Herb Kohl, Chair of the Agriculture Appropriations Subcommittee, was a key supporter of the funding increase.  “Our nation faces historic challenges for our economy, our environment and our energy security,” Kohl said. “Farmers in Wisconsin and across the nation have much at stake and want to be part of the solution.  These funds will help lead the way toward greener energy independence.” (more…)

Today, May 15, 2009, 30 members of the US House of Representatives called for full finding for the clean energy programs in the Farm Bill. Led by Representatives Tim Walz (D-MN) and Jeff Fortenberry (R-NE) a bipartisan group sent a letter to the Leadership of the Agriculture Subcommittee of the House Appropriations Committee seeking full funding for the programs in the 2008 Farm Bill Energy Title.

These new programs can help the nation develop new, modern, low carbon energy sources along with improving energy efficiency. Indeed, these programs demonstrate how agriculture can adapt and prosper within a low carbon economy.

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President Obama today (May 7, 2009) proposed to more than double total planned funding for the Rural Energy for America Program (REAP) next year, FY2010, to $128.1 million. (more…)