After reeling from soaring energy costs in 2022, when diesel prices in the U.S. hit a record high, American farmers are taking advantage of provisions in the Inflation Reduction Act from the same year that help small farms install solar power at virtually no cost. Demand for the Rural Energy for America Program of the U.S. Agriculture Department is overwhelming as farmers seek to slash their energy bills by having solar power installed at their farms.
Census of Agriculture from 2022, a total of 1.9 million farms dot America’s rural landscape, and 95% are operated by families – individuals, family partnerships, or family corporations. Farmers are also embracing and growing renewable energy. In 2022, a total of 153,101 farms and ranches used renewable energy producing systems compared to 57,299 in 2012, a 167% increase over 10 years, per AFBF data.
is granting millions of U.S. dollars in funding for loan and grant awards through the Rural Energy for America Program REAP. The program, which can cover up to 50% of a renewable energy installation, is designed to help agricultural producers and rural small business owners make energy efficiency improvements and renewable energy investments to lower energy costs and generate new income by selling energy to utilities.
and the U.S. Department of Energy DOE launched a new initiative to help farmers cut costs and increase income using underutilized renewable technologies. has an initial goal of helping 400 individual farmers deploy smaller-scale wind projects. Federal funding is also supporting research and development in agrivoltaics – the combination of solar panels and agricultural production at the same location. In April this year, the U.S. Environmental Protection Agency EPA announced its selections for $20 billion in grant awards under two competitions funded by the Inflation Reduction Act.