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…)

Below please find the REAP awards as of September 25, 2009. This is not the full list and more are expected to come from the state allocations. (more…)

Secretary of Agriculture Tom Vilsack recently visited the Flick Seed Company and Show Me Energy Cooperative as part of the Obama Administration’s Rural Tour. Secretary Vilsack praised the operation as a model to “create new opportunities in rural communities and new markets for farm products.”

Shortly after Secretary Vilsack’s visit, Show Me Energy Cooperative became the first in the nation to be approved under the USDA’s Biomass Crop Assistance Program (BCAP), providing a working model for sustainable biomass energy. Flick and his partners have developed an agricultural enterprise that provides jobs and increased income for growers – all while helping to slow global warming. (more…)

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).

(more…)

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…)

In the first 5 years of the Rural Energy for America Program (REAP), grant awards tended to be concentrated in a few states. These states had invested in policies and programs which helped their farms and rural businesses develop their clean energy resources with help from REAP.

For the 2009 REAP program, the USDA has tried to address this problem by changing how it allocates award funds. Now, each individual state Rural Development office has been provided an allocation of funds for its state. This will speed up awards of some grants and all loan guarantees. USDA has allocated a total of $27.7 million (46% of overall funding) to the states. (more…)