The Trump administration is restricting farmers' access to a federal rural energy program. The Department of Agriculture has issued new rules for its Rural Energy for America Program (REAP), under which farmers can obtain federal support for energy-efficiency projects and cheaper energy. The central change eliminates the upfront funding the program provides — the money a project receives at the start of the work.
The rules were unveiled at the end of September and take effect on October 16. That leaves a short window between the announcement and the rules taking effect. The USDA has framed the new rules as an effort to end taxpayer support for what it calls "unreliable energy sources". The report characterizes the move as another step by the administration against renewable energy.
Analysts say the elimination of upfront funding would put both of the program's benefits — energy-efficiency projects and cheaper energy — out of reach for many farmers. Upfront funding, as the term suggests, covers costs at the beginning of a project. Without it, the initial expense falls to the farmer undertaking the work. On that reading, the program's reach narrows to farms that can finance the early stages themselves.
From October 16, farmers applying to REAP will do so under terms that no longer include money at the outset of a project. The department's stated aim centers on taxpayer funds; the analysts' concern centers on farmer access. For rural energy users, that assessment points to a narrower federal route to efficiency projects and lower energy costs on farms. The program itself remains in place; the terms on which farms can draw on it change.
Source: Oilprice
