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USDA Helps Rural Businesses Make Energy Efficiency Improvements, Adopt Renewable Energy Systems

Investments will Help 640 Businesses Boost Their Bottom Line

WASHINGTON, Dec. 10, 2019 – Deputy Under Secretary for Rural Development Donald “DJ” LaVoy today announced that the U.S. Department of Agriculture (USDA) is investing $237 million to help farmers, ag producers and rural-based businesses lower energy costs (PDF, 260 KB). The Department is providing 640 awards to applicants in all 50 states, the Commonwealth of Puerto Rico and the Western Pacific. USDA is providing the funding through the Rural Energy for America Program (REAP).

“Businesses grow and create more jobs when their energy costs are lower,” LaVoy said. “Under the leadership of President Trump and Agriculture Secretary Perdue, USDA is committed to being a strong partner to rural businesses, because we know that when rural America thrives, all of America thrives.”

Recipients can use REAP funding for energy audits and to install renewable energy systems such as biomass, geothermal, hydropower and solar. The funding can also be used to increase energy efficiency by making improvements to heating, ventilation and cooling systems; insulation; and lighting and refrigeration.

For example:

  • In Alaska, four commercial fishing boat operators will receive a total of $74,153 to purchase equipment to reduce energy costs and keep their catch fresh. One of the operators, Jasper P. Allbrett, in Sitka, will receive a $48,618 grant to upgrade the insulation of fish holds, pumps, the refrigeration unit’s electrical system and the auxiliary generator on his boat. The REAP grants will save each operator about $5,000 annually and will reduce fuel oil consumption by an estimated 34 percent per year.
  • Vicksburg Forest Products LLC in Vicksburg, Miss., will receive a $250,000 grant to upgrade lighting and make improvements to a compressed air system, which will lower electrical consumption by an estimated 63 percent a year, enough to power 462 homes.
  • Panek Farms, in Albion, N.Y., is receiving a $185,470 grant to purchase and install a 320-kilowatt solar array. The project will save the farm $32,675 each year and replace enough demand to power 36 homes.

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


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