The U.S. Department of Agriculture (USDA) is ceasing funding for internal programs spurring solar and wind construction on farmland. USDA Sec. Brooke Rollins made the announcement on X yesterday, citing concerns of solar and wind’s “destruction” of U.S. farmland.
“We are no longer allowing businesses to use your taxpayer dollars to fund solar projects on prime American farmland, and we will no longer allow solar panels manufactured by foreign adversaries to be used in our USDA-funded projects,” Rollins said in a USDA press release.
Solar projects will no longer qualify for the USDA Development Business and Industry Guaranteed Loan program. Perhaps more importantly, the USDA will now limit the size of solar projects eligible for grants through the Rural Energy for America Program (REAP) program.
Moving forward, ground-mount solar projects exceeding 50 kW in size cannot qualify, nor can other ground-mount projects that do not provide “historical energy usage,” according to the press release.
REAP provides solar project funding for farmers, small businesses, cooperatives, electric utilities and Tribal corporations in agricultural communities. It is currently unclear whether or not solar projects that have already been approved for a REAP grant but no longer meet these new stipulations will receive that funding.
George Horrocks, president of New Hampshire solar contractor Harmony Energy Works, said a large part of his company’s output is funded by REAP grants.
“Do I have concerns about it? Yeah, but I’m more concerned for farmers. If you look at the situation of farmers, it’s about the bottom line to stay alive,” Horrocks said. “That’s what they’re trying to do. I know these guys who love farming, and that’s why they do it. Now you’re basically trying to break their legs. They’re just trying to reduce their energy costs.”
At its advent, the REAP program provided cash grants at 25% of a solar project’s cost, which was increased to 50% when the Inflation Reduction Act provided an additional $145 million in funding in 2024. The program was slated to provide over $2 billion in funding through 2031 with assistance from the IRA. Since it was started, REAP had already granted $2.08 billion in project funding for renewable energy and energy efficiency projects.
This is a developing story. Solar Power World will continue to update this news as more information is released.