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Use USDA REAP grants to fund new farm technology

Learn more about USDA REAP grants which pay up to 50 percent of installation of a new technology, such as a mixed flow dryer, that saves energy.

June 1, 2024

2 Min Read
Use USDA REAP grants to fund new farm
Submitted by AGI

What is REAP?

The USDA’s Rural Energy for America Program (REAP) offers grants and guaranteed loans to encourage renewable energy systems and energy efficiency improvement upgrades to increase American energy independence. The program will pay up to 50 percent of the cost of installing a new technology, such as a mixed flow dryer, that saves energy.

Since REAP began, it has awarded over $700 million to thousands of farms and rural small businesses. This includes $361 million in grants and loans for more than 2,900 renewable energy systems. Altogether, these systems are expected to generate more than 6 billion kilowatt hours annually – enough to power more than 5.5 million homes for a year.

What is eligible?

Eligible energy efficiency improvement projects include: 

  • Grain dryers

  • Irrigation motors

  • Heating systems

  • Lighting

What AGI products are eligible?

Eligible products could include technologies like AGI mixed flow grain dryers (https://www.aggrowth.com/en-us/all-products/Conditioning/mixed-flow-dryers) and AGI BinManager® grain monitoring systems (https://www.aggrowth.com/en-us/farm-brands-overview/Bin-Monitoring/binmanager).

What are the program deadlines?

Upcoming application deadlines are: 

  • June 30, 2024

  • September 30, 2024

How much can a farmer receive?

Farmers can receive up to 50 percent of the eligible costs for a project that reduces energy usage or produces renewable energy.

  • Renewable energy system grant amounts: $2,500 min to $1,000,000 max

  • Energy efficiency grant amounts: $1,500 min to $500,000 max

How can AGI help?

To file a REAP grant and streamline the process, farmers will need to secure a third-party grant writer or work with an AGI dealer who can connect them to a local source. AGI also provides the grant writer with the data needed to prove the energy efficiency gained with a mixed flow dryer or AGI BinManager system.

How do farmers get more information?

REAP website:

https://www.rd.usda.gov/programs-services/energy-programs/rural-energy-america-program-renewable-energy-systems-energy-efficiency-improvement-guaranteed-loans

How to find a REAP grant writer

AGI recommends potential grant applicants interview several grant writers and select the one they are most comfortable with.

Grant writers can be found by searching the USDA REAP website, doing an online search or through local AGI dealers. On the USDA REAP website, type “REAP grant writers” in the search field and a list will be generated by state.

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