To the editor:
For nearly two decades, the Rural Energy for America Program (REAP) has helped agricultural producers and rural small businesses lower energy costs and strengthen their operations. A new rule from the U.S. Department of Agriculture (USDA), however, could make REAP increasingly difficult to access for those it intended to serve.
Through grants and guaranteed loans, the program supports projects that increase energy efficiency, such as improvements to heating and cooling systems, grain dryers, and refrigeration systems. In addition, REAP supports behind-the-meter, small-scale renewable energy systems (such as solar or wind) that offset on-site energy usage.
In an attempt to protect farmland from large-scale development, USDA’s Oct. 1 final rule restricts the sizing and siting of projects that could help farmers reduce operating expenses, even though these projects generally occupy only a small portion of the land, with minimal impact on agricultural production.
The rule also shifts REAP to a post-completion, performance based program. Rather than applying for a grant before starting a project and minimizing financial risk up-front, applicants will build the project, operate it for 12 months, then apply using energy production or savings data — with no guarantee of receiving an award.
For large businesses with ready access to capital, the change may be manageable, but for a small farm or rural business operating in tight margins, the ruling could prevent many worthwhile projects.
While the rule is set to go into effect on Oct. 16, USDA has opened a comment period, giving former award recipients, farmers, rural business owners, and others an opportunity to share their feedback. Comments can be submitted through
under Docket RBS-26-Business-0529 until Nov. 2.
A strong REAP should continue helping rural Americans invest in their businesses and communities, while remaining accessible to the small operations that stand to benefit most.
Val Ankeny
Senior policy associate, Center for Rural Affairs
Lyons, Nebraska
(Established in 1973, the Center for Rural Affairs is a private, nonprofit organization working to strengthen small businesses, family farms and ranches, and rural communities through action oriented programs addressing social, economic, and environmental issues.)