USDA awards $120M for renewable energy projects for farmers, ranchers

The U.S. Department of Agriculture (USDA) is investing $120 million in renewable energy projects in 44 states top help farmers, ranchers, agricultural producers, and rural small businesses.

Most of the 541 projects are being funded by the Inflation Reduction Act through the Rural Energy for America Program.

“Under the Biden-Harris Administration, USDA is committed to ensuring farmers, ranchers and small businesses are directly benefitting from both a clean energy economy and a strong U.S. supply chain,” Secretary Vilsack said. “The investments announced today will expand access to renewable energy systems and domestic fertilizer, all while creating good-paying jobs and saving people money that they can then invest back into their businesses and communities.” USDA Secretary Tom Vilsack said.

Through the REAP program, USDA provides grants and loans to help ag producers and rural small business owners expand their use of wind, solar and other forms of clean energy. These investments will cut energy costs for farmers and ag producers, which can be used to create jobs and new revenue streams for people in their communities.

USDA is making the REAP awards in Alabama, Alaska, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Vermont, Virginia, Washington, Wisconsin, and Wyoming.

One of the awards went to Darr Grain in Nebraska, which will install three 15-kilowatt (kW) wind turbines at a grain storage facility. This project is expected to save the business $9,700 in electrical costs per year and generate more than 138,000 kilowatt hours (kWh) of electricity per year. This represents about 77 percent of the company’s energy use.

In Maine, Moorit Hill Farm will install a 40.95 kW roof mount solar system. The system will save the farm more than 50,000 kWh per year, which is equivalent to approximately 100 percent of the farm’s energy use.

In Idaho, Boulder Creek Oz will purchase and install a biomass furnace to provide additional heat to their cabins and mountain lodging facilities in Boundary County. This project is expected to save more than $3,800 per year. Further, it will replace more than 3,700 kWh, which is approximately 94 percent of its energy use per year.

Since Biden took office, USDA has invested more than $1.8 billion through REAP in over 6,000 renewable energy and energy efficiency improvements. USDA continues to accept REAP applications and will hold funding competitions quarterly through Sept. 30, 2024.

In addition to the $120 million, USDA is providing nearly $4 million in funding to Bluestem Systems to build facilities and purchase equipment at three locations in Iowa and Nebraska. The facilities will help the company make advancements in its process to remove water and pathogens to create a dry fertilizer mix.