USDA is offering funds through their Rural Energy for America Program (REAP) to provide support for energy audits and renewable energy development assistance that will allow agriculture producers and rural small businesses to become more energy efficient and use renewable technologies. For all projects, the proposed system must be located in a rural area, must be technically feasible, and must be owned by the applicant.

Grants are awarded on a competitive basis and can be up $100,000. Recipients of an energy audit are required to pay at least 25% of the cost of the audit. The application deadline is June 30, 2011 and more information regarding this program can be found Here.

I have blogged before about USDA’s Rural Energy for America Program (REAP) Grant (in case you missed that post you can find it here at http://aggrantguru.blogspot.com/2009/10/rural-energy-for-america-program-reap.html ) However, I wanted to revisit that grant program again and make sure you were aware of its impending due date. The Indiana USDA Rural Development State Office has received approximately $1.2 million in REAP grant funds allocation and approximately $6.2 million in loan fund allocation. In order to be considered to receive funding from the Indiana state allocation of grant funds, applications must be received by the state USDA Rural Development office no later than 4:30 PM on Monday, May 17, 2010. If an application is received by USDA after May 17, 2010, but before June 30, 2010, then the application may only be considered to receive funding from the national funding allocation. Please note the final deadline for any REAP grant applications to be considered for funding in FY 2010 is 4:30 PM on June 30, 2010.


If you will recall the REAP grant is for energy efficient ideas for your farm or small business that could reduce energy use and result in financial savings for your operation. Grants are awarded on a competitive basis and are for up to 25% of total eligible project costs. Grants range from $2,500-$500,000 for renewable energy systems and between $1,500-$250,000 for energy efficiency improvements. Check out USDA’s REAP website for the full program guidance. http://www.rurdev.usda.gov/rbs/farmbill/index.html

Do you have an energy efficient idea for your farm or small business that could reduce energy use and result in financial savings for your operation? Maybe a project such as a grain dryer, or retrofitting lighting or insulation, maybe just adding solar, wind, biomass, geothermal, hydro power and hydrogen-based sources, or replacing equipment with more efficiency units. Or perhaps looking into diesel irrigation motors, upgrading poultry houses, new HVAC systems or more efficient windows for rural small businesses. All these projects and probably several more that you could think up would meet the criteria to apply for this grant. The only other requirements are that the project must be located in a rural area, owned by a farmer, rancher or a small business, produce energy in the form of heart, electricity or fuel, and is technically feasible. If your energy efficient or renewable energy project meets these guidelines, then what are you waiting for? You are eligible to apply for a Rural Energy for America Program (REAP) Grant through USDA.

The REAP Grant was set up through Section 9007 of the 2008 Farm Bill and offers a grant, loan or grant/loan combination depending on the size of the project or the operations financial situation.

Grants are awarded on a competitive basis and are for up to 25% of total eligible project costs. Grants range from $2,500-$500,000 for renewable energy systems and between $1,500-$250,000 for energy efficiency improvements. Applications are being accepted by USDA on a continual basis. This past year Hoosier Farmers received over $3.8 million in REAP funds for 47 projects. For more additional information please check out USDA’s REAP website for the full program guidance. http://www.rurdev.usda.gov/rbs/farmbill/index.html

Please note, grant funds cannot be used for the following items: Purchase land, Provide working capital, Research and Development, Residential improvements, Vehicles or Waste collections.

One item I would like to point out is that while this grant is a great opportunity for farmers to take advantage of, the application for this grant is long and time consuming. Many farmers hire a grant writer to assist them with their proposals. So if you are interested in these funds, start now and make sure to do your homework and research in order to bring those grant dollars into your energy efficient farming operation.