By Lindsay Bourgoine September 20, 2024
A farmer rides a tractor past some solar panels in an agricultural field. (Credit: Jenson)
The Farm Bill can enable growth of our clean energy economy, but as debate progresses over its future, partisan divides may make it difficult to enact it comprehensively.
Republicans are looking to increase farm safety-net programs and limit future updates to the Thrifty Food Plan in the Farm Bill, which affects the Supplemental Nutrition Assistance Program (SNAP). Democrats are directly opposing SNAP cuts and advocating for increased funding for nutrition programs.1 Other Farm Bill programs like the Rural Energy for America Program (REAP) could be harmed if Congress cannot come to an agreement.2
Through the Farm Bill, REAP provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses to adopt sustainable energy solutions or enhance energy efficiency measures.
Since the beginning of the Biden-Harris administration, over $1.6 billion has been invested through REAP for over 5,450 renewable energy and energy efficiency improvements.3 This money goes toward many different types of projects: funding solar arrays that benefit wastewater treatment, which decreases costs for the facilities and subsequently for the residents they serve; solar arrays and battery systems that can save farms money on electricity that they can then reinvest into their businesses; refrigeration systems that save recipients thousands of dollars a year; and more.
Recently, REAP’s maximum grant size was increased from $250,000 to $500,000 for energy efficiency projects and from $500,000 to $1 million for renewable energy systems. In January 2024 alone, REAP awarded a total of $157 million for 675 projects in 42 states. This funding bolsters equity. REAP delivers real, tangible economic benefits to farmers. It provides critical ways for farmers and small business owners to run their operations sustainably, both economically and environmentally. We cannot let this be deprioritized.
REAP Supports Farmers and Their Communities
The financial support REAP provides has many positive economic impacts on rural communities. In addition to saving farmers and small business owners money by reducing loan, project and long-term energy costs, renewable energy projects funded through REAP also create new jobs, which boost local economies as new income and increased business activity circulate.
Grant recipients become more resilient financially in the face of fluctuating energy prices, decreasing their dependence on expensive, imported energy sources. Finally, rural communities benefit too, as the program enables a decrease in local carbon pollution and can reduce local energy demand while updating the grid.
In 2022, thanks to the Inflation Reduction Act (IRA), REAP received $2 billion for grants, providing additional funding that allowed eligible applicants to receive grants worth up to 50% of renewable energy project costs.4
Most recently, the United States Department of Agriculture announced $145 million in REAP funding,5 further supporting the resilience of the rural United States. While these additional funds have been beneficial and necessary for continuing the progress REAP has already driven, we also need congressional support. In this case, we need Congress to pass a budget for the Farm Bill that ensures continued support for rural businesses in the energy transition.
In the midst of the stalemate in Congress, this decision is being delayed,6 setting the stage for a program extension. Such delays can jeopardize our energy transition and eliminate opportunities for the rural United States to tangibly benefit from clean energy. This is a reality that we cannot afford, as REAP is a vital policy that helps farmers and rural businesses in multiple ways.
REAP Supports Efforts to Combat Climate Change
There is no question that our climate is in crisis – nor is there a question that farms depend on a stable climate.7
Rural areas are especially vulnerable to the effects of climate change.8 This underscores the importance of taking direct steps to mitigate its impact on these communities. With alarming temperature increases, rising sea levels and more frequent extreme weather events, the climate crisis is becoming more dangerous – and through REAP, we have the opportunity to ensure farmers can be part of the solution.
Ultimately, REAP is just one step that can be taken to increase renewable energy and decarbonize our current energy infrastructure to combat climate damage.
REAP benefits the interests of both political parties – it supports rural businesses and farmers and also supports the clean energy transition and reduces the impacts of climate change. As the debate over the Farm Bill continues, we can’t forget about REAP or the critical role it plays for agricultural producers and small business owners in the rural United States.
Sources
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- https://tinyurl.com/ymp579h3
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- https://tinyurl.com/cvht3ntj
- https://tinyurl.com/bddham9n
About the Author
Lindsay Bourgoine is the director of policy & government affairs at ReVision Energy, a mission-driven, employee-owned solar company operating in northern New England.