OMAHA, Neb. — U.S. Department of Agriculture (USDA) Secretary Tom Vilsack announced that USDA is investing $124 million in renewable energy and fertilizer production projects in 44 states to lower energy costs, generate new income and create jobs for U.S. farmers, ranchers, agricultural producers and rural small businesses.
The Secretary made the announcement during a visit to University of Nebraska Omaha, where he discussed USDA’s efforts under the Biden-Harris Administration to invest in rural communities nationwide. Most of the projects announced today are being funded by President Biden’s Inflation Reduction Act, the nation’s largest-ever investment in combating the climate crisis, through the Rural Energy for America Program. An additional project is funded by the Fertilizer Production Expansion Program. In total, this funding advances the President’s Investing in America agenda to grow the nation’s economy from the middle out and bottom up by increasing competition in agricultural markets, lowering costs and expanding clean energy.
“Under the Biden-Harris Administration, USDA is committed to ensuring farmers, ranchers and small businesses are directly benefitting from both a clean energy economy and a strong U.S. supply chain,” Secretary Vilsack said. “The investments announced today will expand access to renewable energy systems and domestic fertilizer, all while creating good-paying jobs and saving people money that they can then invest back into their businesses and communities.”
This visit comes just weeks after USDA selected Midwest Electric Cooperative, located in Grant, NE, and the Village of Emerson, NE as two of its first applicants to move forward in the awards process through the Powering Affordable Clean Energy program. Midwest Electric Cooperative will build solar renewable energy resource facilities and energy storage systems for the communities in Wallace, Grant, Paxton and Lakeview. The Village of Emerson plans to use the funds to finance a solar facility that will distribute clean energy to the Winnebago Tribe.
Rural Clean Energy Production
Today’s announcement includes an investment of over $120 million in 541 Rural Energy for America Program (REAP) projects across 44 states.
Through the REAP program, USDA provides grants and loans to help ag producers and rural small business owners expand their use of wind, solar and other forms of clean energy and make energy efficiency improvements. These innovations help them increase their income, grow their businesses, address climate change and lower energy costs.
The REAP program is part of the President’s Justice40 Initiative, which set a goal to deliver 40% of the overall benefits of certain federal investments to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution.
These investments will cut energy costs for farmers and ag producers that can instead be used to create jobs and new revenue streams for people in their communities. For example:
In Nebraska, Darr Grain will install three 15-kilowatt (kW) wind turbines at a grain storage facility. This project is expected to save the business $9,700 in electrical costs per year and generate more than 138,000 kilowatt hours (kWh) of electricity per year. This represents 77% of the company’s energy use, which is enough to power nine homes.