USDA Helps Farms and Businesses Cut Energy Costs
COLUMBIA, MO, November 22, 2016 – USDA is offering grants and loan guarantees to help rural businesses and agricultural producers reduce their energy costs and consumption. The funding is being provided through USDA Rural Development’s Rural Energy for America Program (REAP). Loans and grants are available to install renewable energy systems or make energy efficiency improvements.
“REAP is a community and economic development program. Any time a program can reduce costs for producers and businesses, the result is improved community stability and vitality,” said Missouri State Director Janie Dunning. “Through REAP, projects are funded which reduce operating costs for businesses, farmers and ranchers. These projects not only assist community and economic development, but the energy savings and energy advancements extend the life of existing energy resources and contribute to preserving a healthy ecosystem.”
Renewable energy systems include solar, wind, geothermal, anaerobic digesters, and renewable biomass.
Energy efficiency improvements include grain drying and handling, lighting, refrigeration, facility improvements (such as adding insulation or replacing windows), heating and cooling upgrades, motor replacements and automated control upgrades.
Sixty-four REAP grants were awarded to Missouri farms and businesses in FY 2016. The total amount of grant funds awarded was $1,085,751. In addition to the grants, two businesses received guaranteed loans totaling $5,205,000.
Projects ranged from the installation of solar arrays and lighting to replacement of heating and cooling systems for small businesses and agriculture producers. For example, CADA Farm, LLC (Bunceton, MO) received a $12,327 grant to install a waste heat recovery system to improve energy efficiency in their turkey barns, which reduced their propane cost by 45%.
Grants of up to 25% of a project’s total costs are available. The maximum grants are $250,000 for energy efficiency improvements and $500,000 for renewable energy systems.
In addition to the grants, loans guarantees of up to 75% of a project’s total costs are available. The maximum loan is $25 million.
The next grant application deadline is March 31, 2017. Guaranteed loan applications will be reviewed on a monthly basis.
For information on REAP contact (573) 876-9321 or email nathan.tutt@mo.usda.gov.
Don’t miss this great opportunity!
USDA, through its Rural Development mission area, has an active portfolio of more than $212 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.
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