Victorian Michigan Farm (©photo by Rodney Campbell, courtesy of morgueFile.com)

Agriculture Secretary Tom Vilsack today announced loans and grants for more than 500 agricultural producers and rural small businesses across the country to implement renewable energy and energy efficiency measures in their operations.

"This funding is an important part of the Obama Administration's plan to help the nation's farmers, agricultural producers and rural small businesses conserve natural resources, create more green jobs and lead us on the path to becoming an energy independent nation," Vilsack said.

The grants and loan guarantees are being provided through the Rural Energy for America Program (REAP), a 2008 Farm Bill initiative. REAP offers funds for farmers, ranchers and rural small businesses to purchase and install renewable energy systems and make energy-efficiency improvements. These federal funds leverage other funding sources for small businesses. In all, USDA announced today more than $27 million in energy grants and guaranteed loans for projects.

Converting Waste to Watts

The REAP program is helping many agricultural producers and rural small businesses reduce energy consumption. For example, in Kirkwood, Pennsylvania, Jay Clifford Sensenig was selected to receive a $309,733 grant to install a co-op digester system that will process annually more than 16,800 tons of dairy, hog and chicken manure from four farms into methane gas, creating more than 879,000 kilowatts per year of electricity. In addition, the digester system is designed to accept and process food waste. The host farm uses 232,000 kilowatts annually; the excess energy produced from the digester will be sold to the local utility.

In Beaver Dam, Wisconsin, United Cooperative was selected to receive a $448,500 grant to help with the installation cost of 33 ethanol flex-fuel dispensers and 17 biodiesel dispensers. United Cooperative is a full-service cooperative that offers feed, grain, agronomy and energy products to south-central Wisconsin farmers and consumers.

Solar & Geothermal in the Mix

The REAP program is also funding several other types of renewable energy and energy efficiency projects. For example, in Windham, N.H., the Pugliese Contracting Corporation was selected to receive a $99,500 loan guarantee and a $49,875 grant to purchase and install a 30 kilowatt solar photovoltaic system and a geothermal heating and cooling system in its 8,000-square-foot operations center. Once installed, the system will reduce energy purchased from the grid by 63%. The geothermal system will provide 100% of the business's heating and cooling needs.

Funding of each award is contingent upon the recipient meeting the conditions of the grant or loan agreement. Grants can finance up to 25% of a project's cost, not to exceed $500,000 for renewables, $250,000 for efficiency.

About USDA Rural Development

USDA, through its Rural Development mission area, administers and manages housing, business and community infrastructure and facility programs through a national network of state and local offices. Rural Development has an existing portfolio of more than $155 billion in loans and loan guarantees. These programs are designed to improve the economic stability of rural communities, businesses, residents, farmers and ranchers and improve the quality of life in rural America.

To learn more, go to: USDA Rural Development

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