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 3 programs to share with you today that all deal with renewable energy. So to get things started off….

Biomass Research and Development Initiative

US Department of Agriculture (USDA) and the US Department of Energy (DOE) are offering funding through a grant for Biomass Research and Development. Funding can be used on: Technologies and processes necessary for abundant commercial production of biofuels at prices competitive with fossil fuels; High-value biobased products; and a diversity of economically and environmentally sustainable domestic sources of renewable biomass for conversion to biofuels, bioenergy, and biobased products. Eligible applicants include: non-profits, academia and the private sector. Pre-applications are due June 7, 2010 and more information can be found at http://www07.grants.gov/search/search.do;jsessionid=MHtLLqTZjDqDKXvvh1z5GyT1dFy6dcS4PNG0JLRRy9bTP2TnN10P!-2132130105?oppId=54455&mode=VIEW

USDA-Repowering Assistance Program

Eligible biorefineries in existence before June 18th, 2008 can partake in this program which encourages the use of renewable biomass as a replacement fuel source for fossil fuels used to provide process heat or power in the operation of this biorefineries. Payments will be made based on the amount of fossil fuel a renewable biomass system is replacing; the cost effectiveness and economic benefit to the area. For applications please contact your USDA-Rural Development State Office.

USDA-Bioenergy Program for Advanced Biofuels payments to Advanced Biofuel Producers

This program provides payments to to eligible advanced Biofuel producers in rural areas for the production of fuel derived from renewable biomass, other than corn kernel starch to include: biofuels derived from cellulose, hemicelluloses, lignin, sugar, starch, waste material, diesel-equivalent fuel derived from renewable biomass included vegetable oil and animal fat, biogas, and butanol. For applications please contact your state USDA-Rural Development office.

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

Just like the John Mellencamp song says: “I’ve seen it all in a small town, had myself a ball in a small town.” I grew up in one such small town in North Central, Indiana and can safely say the older I get the more I like small town, rural America. Where else can you walk down the street and know over half of the people you see? Where else can you eat at the local diner and get all the latest news and gossip? Small towns have such a sense of pride in their community, their schools, and any other thing that makes their town unique. That’s why this weeks blog post features grants that specifically aid projects in those small town, rural areas.

USDA’s definition of rural is; any area other than a city with a population greater than 50,000.

USDA- Rural Business Opportunity Grant promotes sustainable economic development in rural communities with exceptional needs through provision of training and technical assistance for business development, entrepreneurs and economic development officials to assist with economic development planning. Eligible applicants include rural public bodies, rural non profit corporations and cooperatives with primarily rural members. Applications are due June 28, 2010 and for more information you can visit this website http://www.rurdev.usda.gov/rbs/coops/rbog.htm and check with your USDA Rural Development State office, http://www.rurdev.usda.gov/recd_map.html

USDA-New Era Rural Technology Competitive Grant Program is for technology development, applied research and/or training to develop an agriculture based renewable energy workforce. Funding will be used to enable community colleges and advanced technological centers located in rural areas to strengthen the Nation’s technical, scientific and professional workforce in the fields of bioenergy, pulp and paper manufacturing and ag based renewable energy resources. Applications are due April 14th, 2010 and more information can be found at http://www.nifa.usda.gov/funding/rfas/new_era.html

I received a calendar this year for Christmas, and while the last days of the 2009 linger I am already planning ahead for grant opportunities in the coming new year.

What federal funds can we expect? Well, we know all the funding outlined in the farm bill will cover another round of the Specialty Crop Block Grant. That is a great program that specifically targets the fruit and vegetable commodities. Also the Farmers’ Market Promotion Program will be out in the spring and give markets a chance to apply directly to USDA for funding.

The Rural Energy for America Program (REAP) is now open year round for all your bio-energy and energy efficiency needs. I anticipate more funding this coming year for biomass and solar as well.

For the folks in conservation there should be another round of Sustainable Agriculture, Research and Education (SARE). As well as the Conservation Innovation Grant (CIG) through NRCS which is a voluntary program intended to stimulate the development of innovative conservation technologies; funds are used to award competitive grants to non-Federal governmental or non-governmental organizations.

May 2010 bring you many new resources, opportunities and….. grants!!!!!

This week I wanted to give a shout out to the Indiana State Department of Agriculture (ISDA) Biofuels Grant Program. This program is a way to increase the access to, and usage of, biofuels by Hoosier consumers and therefore move Indiana’s economy forward. E85 is an 85 percent ethanol fuel blended with 15 percent petroleum fuel.

This program awards funds (up to $20,000) for the installation of E85 refueling infrastructure at public refueling stations. The equipment purchased and installed for an E85 refueling station should be compatible with E85. Commercial refueling facilities or local units (defined as: cities, towns, counties, or townships) are eligible to apply. Those who own or operate multiple locations are allowed to apply for more than one location; however, each location needs to be on its own application and each will be scored separately.

Costs that are eligible under this grant program include: biofuels equipment, installation and site preparation for biofuels pumps only, and signage. Under the equipment category, only tank, pump, canopy and lighting expenses directly related to the dispensing of biofuels will be considered eligible costs. Eligible projects must apply commercially available technologies. Biofuels grants will not be awarded to fund research projects.

This grant has an open application period and more information about this grant along with an application can be found on ISDA’s website at: http://www.in.gov/isda/2401.htm

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.