ST. PAUL, Minn., Nov. 3, 2020 – United States Department of Agriculture (USDA) Rural Development State Director for Minnesota Brad Finstad today announced that USDA is investing $14.3 million to reduce energy costs for farmers, ag producers and rural-based businesses and institutions in rural Minnesota.
“By reducing energy costs, renewable energy helps to create opportunities for improvement elsewhere, like creating jobs,” said Finstad. “Under the leadership of President Trump and Agriculture Secretary Perdue, USDA continues to be a strong partner to rural Minnesota in building stronger and healthier communities, because we know when rural America thrives, all of America thrives.”
Background:
USDA is investing in 25 rural small businesses and ag producers through the Rural Energy for America Program (REAP) Renewable Energy Systems & Energy Efficiency Improvement Grants and Guaranteed Loans.
Investments can used for renewable energy systems such as biomass, geothermal, hydropower and solar. REAP funding can also be used for energy audits and to make energy efficiency improvements to heating, ventilation and cooling systems, insulation, lighting and refrigeration.
For example:
In Brooten, USS Viceroy Solar LLC will use a $2.1 million loan to purchase and install a 1.4 MW solar array system that is estimated to produce 2.2 million kilowatt hours (kWh) per year, which is enough electricity to power 206 homes.
Newalta Dairy in Pipestone, Minn. will use a $28,072 grant to purchase and install LED lighting throughout each of the farm’s dairy barns. The energy efficient lighting will save the farm $27,204 per year and will replace nearly 326,000 kWh per year, which is enough electricity to power 33 homes.
In Elbow Lake, family farm owner Jody Coleman will use a $125,000 grant to purchase and install a new grain dryer that is will save the farm $227,267 per year and will replace 5.1 million kWh per year, which is enough electricity to power 473 homes.
Southern Minnesota Beet Sugar Cooperative will use a $114,071 grant to purchase and install a juice purification system for more efficient sugar beet processing in Renville, Minn. This energy efficient improvement will save the coop $3.6 million per year and will replace 224.8 million kWh per year, which is enough electricity to power nearly 21,000 homes.
Today’s investments will help save a total of $4.1 million per year and replace more than 251 million in kWh per year, which is enough electricity to power more than 23,100 homes.
The deadline for the next round of applications is March 31, 2021. Interested parties should contact their local Minnesota area office for information about additional funding, application procedures and eligibility details.
Visit https://www.rd.usda.gov/onerdguarantee to learn more about how the REAP Guaranteed Loan Program will be streamlined under the OneRD Guarantee Loan Initiative.
In April 2017, President Donald J. Trump established the Interagency Task Force on Agriculture and Rural Prosperity to identify legislative, regulatory and policy changes that could promote agriculture and prosperity in rural communities. In January 2018, Secretary Perdue presented the Task Force’s findings to President Trump. These findings included 31 recommendations to align the federal government with state, local and tribal governments to take advantage of opportunities that exist in rural America. Supporting the rural workforce was a cornerstone recommendation of the task force.
To view the report in its entirety, please view the Report to the President of the United States from the Task Force on Agriculture and Rural Prosperity (PDF, 5.4 MB). In addition, to view the categories of the recommendations, please view the Rural Prosperity infographic (PDF, 190 KB).
USDA Rural Development provides loans and grants to help expand economic opportunities and create jobs 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 areas. For more information, visit www.rd.usda.gov/mn.
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