REAPing BENEFITS
As government energy policies threaten to raise agricultural input costs, some farmers are using federal grants and guaranteed loans to help them become more energy efficient.
The Rural Energy for America Program, or REAP, administered by USDAs Rural Development (RD), provides grants to farmers and rural small business owners for up to 25% of the costs of installing renewable energy systems or making energy efficiency improvements on business-related facilities or systems. Guaranteed loans are also available to finance up to 75% of project costs, or loans and grants may be combined, for the same costs.
In 2009, Congress allocated $55 million for REAP funding and stipulated that 20% of it go toward grants of $20,000 or less. Over 1,000 projects will be funded this year. Congress has allocated #60 million in REAP funding for 2010 and $70 million for FY 2011 and FY 2012.
Work on projects can be started as soon as applications are filed, but the applicant must be aware of there's no guarantee of funding and must plan for alternate financing if necessary.
In addition to energy-efficiency improvements, REAP funding is available for renewable-energy projects such as systems to product heat, electricity or other fuels from resources such as wind, biomass, solar, geothermal or anaerobic digestion.
The 2008 Farm bill also created two additional types of REAP grants, including funding for feasibility studies for renewable-energy projects and funding for eligible institutions to provide consulting assistance to agricultural producers and rural small businesses to become more energy efficient or to use renewable-energy technologies and resources. A complete list of REAP recipients can me obtained through RDs Freedom of Information Act Office here. To learn more about REAP grants and loans, farmers and rural small-business owners should contact their state RD office.
To see more articles, click on the titles below:
Rural Economic Development Grants Available
USDA Announces Rural Economic Developmental Grants
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