BISMARCK, N.D., Oct. 18, 2024 – U.S. Department of Agriculture (USDA) Rural Development State Director Erin Oban today announced that USDA is partnering with farmers to expand access to clean energy and help lower their energy bills through the Rural Energy for America Program (REAP) program.
More than 600 of the funded projects under both programs announced today are made possible by President Biden’s Inflation Reduction Act, the nation’s largest-ever investment in combating the climate crisis. They also advance the President’s Investing in America agenda to grow the nation’s economy from the middle out and bottom up.
“USDA Rural Development continues to put federal investments made available through the passage of the Inflation Reduction Act to work for family farmers right here in North Dakota,” said Oban. “These grant awards are going to our friends and neighbors to create efficiencies to their farm operations that will save enough energy to power more than 100 homes, noticeably reduce their annual expenses, and keep more money in their pockets and in their communities.” Audio: MP3, 0:28, 239 KB.
Through REAP, USDA partners with agricultural producers and small businesses to lower business costs through clean energy and energy efficiency systems. U.S. Department of Agriculture Secretary Tom Vilsack also announced the availability of an additional $600 million in REAP funds that farmers and small businesses can apply for by March 31, 2025.
REAP Investments Lower Costs and Create Jobs
Since the start of the Biden-Harris Administration, USDA has invested $66.8 million through REAP in Pennsylvania through 475 awards that directly serve farmers and rural small businesses across the state. Nationally, USDA has invested more than $2.4 billion in approximately 8,500 renewable energy and energy efficiency improvements since President Biden took office. This includes more than 3,000 clean energy projects totaling more than $800 million which were made possible because of President Biden’s Inflation Reduction Act.
In North Dakota:
- Richard and Clyde Pladson Partners will use a $404,484 grant to install a more energy-efficient grain-drying system. Richard and Clyde Pladson Partners operates a family farm, growing grains near Hatton. This project annually will save $26,281 and replace 370,355 kilowatt hours (kWh) (36 percent), enough energy to power 34 homes.
- Todd Zahnow will use a $311,137 grant to install a more energy efficient grain drying system. Zahnow operates a family farm growing small grains near Raub, North Dakota. This project annually will save $3,379 and replace 54,926 kilowatt hours (kWh) (29 percent), enough energy to power five homes.
- Brian Tjernlund will use a $433,474 grant to install a more energy efficient grain drying system. Tjernlund operates a family farm growing small grains near Kulm, North Dakota. This project annually will save $26,248 and replace 419,502 kilowatt hours (kWh) (52 percent), enough energy to power 38 homes.
- Joel Olson will use a $39,125 grant to install a 27.88 kilowatt (kW) solar array system. Olson operates a family farm growing small grains near Minot, North Dakota. This project will save the business $2,750 per year and generate 48,032 kilowatt hours (kWh) per year, which is enough electricity to power four homes.
- Square Butte Farm will use a $246,908 grant to install a more energy efficient grain drying system. Square Butte Farm operates a family farm growing small grains near Center, North Dakota. This project annually will save $1,701 and replace 30,318 kilowatt hours (kWh) (60 percent), enough energy to power three homes.
- Wayne Backman will use a $209,210 grant to install a more energy efficient grain drying system. Backman operates a family farm growing small grains near Wilton, North Dakota. This project annually will save $6,319 and replace 130,161 kilowatt hours (kWh) (60 percent), enough energy to power 12 homes.
- Gregory Aarhus will use a $94,338 grant to install a more energy efficient grain drying system. Aarhus operates a family farm growing small grains near Emerado, North Dakota. This project annually will save $11,625 and replace 230,485 kilowatt hours (kWh) (47 percent), enough energy to power 21 homes.
Background: REAP Inflation Reduction Act Funding Availability
As part of today’s announcement, USDA will make available an additional $600 million across three funding rounds from now until 2027.
During each funding round, the Department expects to make available $180 million in general REAP funding and $20 million in set-aside funding for underutilized renewable energy technology.
These funds are made possible by President Biden’s historic Inflation Reduction Act and will be the final REAP funding availability from this legislative package.
USDA is accepting applications in this first round through two windows. The deadlines to apply are Dec. 31, 2024, and March 31, 2025. For additional information about the REAP funding availability, see page 83449 of the Oct. 16 Federal Register.
Under the Biden-Harris Administration, USDA Rural Development provides loans and grants to help expand economic opportunities, create jobs and improve the quality of life for millions of Americans in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural, Tribal and high-poverty areas. Visit the Rural Data Gateway to learn how and where these investments are impacting rural America. For more information, visit www.rd.usda.gov. To subscribe to USDA Rural Development updates, visit the GovDelivery Subscriber Page.
USDA touches the lives of all Americans each day in so many positive ways. Under the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate-smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.