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USDA Announces Availability of $1 Billion to Help Farmers and Rural Businesses Invest in Renewable Energy Systems and Energy-Efficiency Improvements

USDA Announces Availability of $1 Billion to Help Farmers and Rural Businesses Invest in Renewable Energy Systems and Energy-Efficiency Improvements


U.S. Department of Agriculture (USDA) Rural Development Ohio State Director Jonathan McCracken today announced that USDA is accepting applications for $1 billion in grants to help agricultural producers and rural small businesses invest in renewable energy systems and make energy-efficiency improvements. USDA is making the $1 billion in grants available under the Rural Energy for America Program (REAP), with funding from President Biden’s landmark Inflation Reduction Act, the nation’s largest-ever investment in combatting the climate crisis.

“Investing in climate-smart energy systems is good for business and vital to Ohio’s economic future,” said McCracken. “The Renewable Energy for America Program creates good paying jobs in rural Ohio, supports thriving communities, and helps lower energy costs for farmers and small businesses across our state.”

Recipients may use REAP funds to install renewable energy systems or to make energy-efficiency improvements. Eligible applicants include rural small businesses and agricultural producers. USDA will hold competitions quarterly through Sept. 30, 2024. The funding will also include the creation of the first underutilized technology fund in the REAP program, with $144.5 million available in dedicated funding.

USDA is particularly interested in REAP projects that will help rural communities recover economically through more and better market opportunities and improved infrastructure, reduce climate pollution and increase resilience to the impacts of climate change, conserve and protect farmland, and invest in underserved communities. The program is part of the Biden-Harris Administration’s Justice40 Initiative, which aims to ensure that 40% of the overall benefits of certain Federal investments flow to disadvantaged communities that are marginalized, underserved and overburdened by pollution.

To ensure that small projects have a fair opportunity to compete for the funding, USDA will set aside at least 20% of the available funds until June 30 of each year for grant requests of $20,000 or less, including the grant portion of a combined grant and guaranteed loan request.

Source: usda.gov

Photo Credit: pexels-karolina-grabowska

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