USDA Makes It Harder for Farmers to Lower Energy Bills

WASHINGTON, D.C. – Members of Congress are urging the U.S. Department of Agriculture (USDA) to reverse damaging changes to the Rural Energy for America Program (REAP), which helps farmers and rural small businesses reduce their energy costs through investments in on-site clean energy and energy efficiency technologies they otherwise might not be able to afford.

In separate letters, 45 House Democrats led by the House Agriculture Committee and Sustainable Energy and Environment Coalition (SEEC), along with 21 Senators, called on USDA to reverse course. The new rule requires applicants to self-finance, complete energy projects, and document a full year of operation before they can even apply for grant assistance. It also imposes sweeping restrictions on solar and wind technologies, including burdensome supply chain restrictions. 

The following is a reaction from Jeffrey McManus, Federal Affairs Legislative Advocate at NRDC (Natural Resources Defense Council):

“For anyone in Washington who says they stand with American farmers, this should be an easy call. If USDA won't fix this, lawmakers on both sides of the aisle should step in to make sure REAP works for the people it was meant to help.

“This is about as backward as an affordability program can get. Farmers and rural small businesses are already struggling with rising costs and shrinking margins, with electricity rates up 15 percent nationwide since Trump took office. Instead of helping them stay afloat, this administration is putting another hurdle in their way, while favoring those with the deepest pockets.

“With this change, USDA will make farmers prove they can afford an energy-saving project without a grant before they're even allowed to apply for one. A program designed to help farmers make investments they otherwise couldn't afford is becoming a potential rebate for those who can already finance them.”

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