USDA REAP Tennessee is sponsored by US Department of Agriculture (USDA). Provides grants to agricultural and rural businesses in Tennessee for renewable energy systems and energy efficiency improvements.

USDA Halts REAP Grant Applications as Rising Energy Costs Squeeze Farmers P[T1] D[728x90] M[320x50] OOP[F] ADUNIT[] T[] Crude futures extended their losses Thursday, slipping for a fifth time in six sessions, as a U.S.-Iran deal to end hostilities and restore shipping...

Oil Hits Lowest Levels Since Iran War as Hormuz Reopens Oil Ends Off Highs as Mideast Relief Blunts US Draws Oil Rebounds from 3-Month Lows on US Inventory Watch McBee Dynasty Family Faces 2027 Trial Reality TV farmer Steve A. McBee, imprisoned for crop insurance fraud, faces trial for allegedly transferring business assets to his sons to avoid...

Recent Farmland Sales in Illinois, Iowa, Minnesota and Nebraska EIA Weekly Ethanol Report EIA: US Ethanol Stocks Drop 0. 6% Year-on-Year Stalling E15 Expansion Risks Corn Acres Report: US Could Lose 30-Million Corn Acres by 2050 Without E15, Biofuel Expansion DTN's View From the Cab farmers have a new work crew to boss now that the kids are home for the summer. This week the farmers talk about...

Free To Be Me: 250 Years Later Montana Ranch Family's Branding Traditions Spotlight on Rural Resilience DTN's Special Coverage of the Challenges and Opportunities Facing Rural America P[] D[0x0] M[0x0] OOP[F] ADUNIT[] T[] Solar panels on a machine shop at a farm in Washington state.

A small business owner in Washington state works with the USDA Rural Energy for America Program (REAP), which is now largely frozen because of executive orders. (Photo courtesy of David Funk, Zero Emissions Northwest) This article was originally posted at 3:05 p. m.

CDT on Wednesday, April 1. It was last updated at 3:57 p. m.

CDT on Wednesday, April 1. OMAHA (DTN) -- As rural energy costs continue to climb, USDA has halted grant applications for the Renewable Energy for America Program (REAP) while the department rewrites program rules to comply with an executive order by President Trump last year aimed at cutting subsidies for renewable energy projects.

A popular program, REAP provides grants and loans to farmers and small businesses in rural communities to improve energy efficiency and reduce their long-term energy costs. In a stakeholder announcement on Tuesday, USDA announced the department would update its regulations on REAP to comply with Trump's Executive Order from last July called, "Ending Market Distorting Subsidies for Unreliable, Foreign Controlled Energy Sources."

USDA stated there would not be any further REAP grants "until the new regulations are in effect." Once new rules are finalized, USDA stated the department would issue a new funding notice "and any applicants who previously submitted an application will have the opportunity to reapply."

The Trump administration announced in March 2025 it would unfreeze previously obligated REAP funds awarded under the Biden administration, but USDA officials have not awarded any new REAP grants since taking office. While grants have been halted, USDA stated in its notice that the department would continue to accept applications for REAP guaranteed loans.

In a comment to DTN, a USDA spokesperson stated: "Bringing regulations in line with the Trump administration's priorities to end market-distorting subsidies for unreliable, foreign-controlled energy sources is a top priority for the USDA. Although no immediate timeline is available, issuing the new regulations is a top focus as we work tirelessly to support our American farmers, rural small businesses, and partners.

A new Notice of Funding Opportunity will be published in accordance with the new regulations once they are effective." P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[] Environmental and small-farm organizations criticized the decision to freeze REAP grants until new rules are written.

"As the nation struggles with rising energy costs, USDA just announced its failure to implement an existing program specifically designed to help farmers and rural small businesses save on energy costs," said Matt Ohloff, a policy advocate for Environmental Law & Policy Center. "REAP is a popular program that has received bipartisan support for over 20 years and has a long track record of success.

Failing to implement this program is only creating more hardship and uncertainty for farmers and rural small businesses." The National Sustainable Agriculture Coalition also pointed out that farmers are facing increased financial pressures and REAP is focused on reducing energy costs.

"At a moment when farmers and rural small businesses face converging financial pressures, bringing the Rural Energy for America Program to a standstill only increases that pressure. Countless small businesses have invested significant time and resources in this popular, bipartisan program to reduce their energy costs.

USDA should implement the REAP program as quickly as possible and provide more clarity on when farmers can expect the program to resume," said Richa Patel, an NSAC policy specialist. Agriculture Secretary Brooke Rollins last year announced USDA would not use taxpayer dollars to fund solar projects that displace farmland.

Yet REAP funds small-scale projects that would not be large enough to take farmland out of production for power generation. The House version of the farm bill, which has yet to see a floor vote, includes language that would allow USDA Rural Development funds for solar panels on five acres without any restrictions, or allow solar on up to 50 acres if most of the power generated is used on the farm.

Trump's executive order, issued last July, criticized "so-called 'green' subsidies" for displacing "affordable, reliable, dispatchable domestic energy sources" as well as compromising the grid. The order also argues that renewable energy threatens national security by relying heavily on foreign supply chains.

"Ending the massive cost of taxpayer handouts to unreliable energy sources is vital to energy dominance, national security, economic growth, and the fiscal health of the Nation," the executive order stated. REAP has historically been a small loan program funded in the farm bill, but the program received $1. 7 billion under the Inflation Reduction Act in 2022 that included allowing for grants of up to 50% of total project costs.

Under the Biden administration, farmers and rural business owners who wanted to build renewable energy systems such as wind, solar, biomass, and methane digesters could receive up to $1 million for their projects. USDA held quarterly grant awards in 2023 and 2024 for such projects. To qualify, a farmer had to show at least 50% of their gross income was derived from agriculture.

Small businesses had to be located in communities with fewer than 50,000 people and show their net worth was under $15 million. In October 2024, the Biden administration provided $126 million in REAP grants for 654 renewable energy projects across 39 states along with Puerto Rico and Guam. A large number of those grants involved installing solar on barns, poultry houses and other small businesses.

Some of the grants also allowed farms to install more energy-efficient irrigation systems such as replacing diesel engines with electric motors. Meanwhile, electricity costs nationally have risen by nearly 10% in the past year, driven in part by the development of heavy energy usage tied to the explosion of data centers across the country. Diesel prices have also spiked 46% since the war in Iran began at the end of February.

Chris Clayton can be reached at Chris. Clayton@dtn.

com Follow him on social platform X @ChrisClaytonDTN P[] D[728x170] M[320x75] OOP[F] ADUNIT[] T[] P[L2] D[728x90] M[320x50] OOP[F] ADUNIT[] T[] P[R1] D[300x250] M[300x250] OOP[F] ADUNIT[] T[] P[R2] D[300x250] M[320x50] OOP[F] ADUNIT[] T[] DIM[1x3] LBL[article-box] SEL[] IDX[] TMPL[standalone] T[] P[R3] D[300x250] M[0x0] OOP[F] ADUNIT[] T[] DTN delivers accurate, objective, real-time, and actionable insights to increase our 2 million customers’ confidence and support their business decisions.

In a data-rich world, our actionable insights in weather and financial analytics make sense of the information, drive change in processes and help businesses prosper. They empower our agriculture, energy and transportation customers – those who work endlessly to feed, fuel and protect our world.

We believe that when our customers are supported with the most reliable and innovative information to the Nth Degree, they prosper and we all win. DTN is based in Minneapolis with offices globally. Increase margins and efficiency Increase yields and savings with precision weather Grow your production, efficiencies, and profitability.

We've detected that you are using an unsupported browser. Not all features of DTN / The Progressive Farmer may function as expected. Internet Explorer 10 or above Google Chrome for Android Start your free MyDTN demo Please correct the following errors and try again: data-config-pending-label=" " data-config-success-label=" " Join the community!

Registration is FREE. As a member of the DTNPF online community you can contribute to discussions, save your settings, get exclusive email alerts and access to special online sections, and read e-newsletters.

Please correct the following errors and try again: e.g. 68114 (US) or Y0B 1G0 (Canada) 8-32 characters, include one number (0-9) and one letter (a-z) I agree to receive information from DTN/ The Progressive Farmer containing news, updates and promotions regarding DTN/ The Progressive Farmer's products. I understand I can withdraw my consent at any time.

DTN, LLC • 9110 West Dodge Road • Omaha, NE 68114 Save DTNPF to your home screen: Tap on the arrow and then select Add to Home Screen