Date: 11/28/2014

Source: M. Clements, National Association of Farm Broadcasters

Audio with Jeff Jobe, Business and Cooperative Programs Director, Rural Development for the USDA office in Des Moines, Iowa (MP3 2.3 MB). Download Windows Media Player. Time: 00:02:30.

REAP, known as the Rural Energy for America Program, encourages funding for renewable energy projects. REAP authorizes $50 million of mandatory funding and up to $20 million of discretionary funding through the life of the 2014 Farm Bill each year. USDA Rural Development Business and Cooperative Programs Director in Des Moines Jeff Jobe explains the type of projects that can be found in the program.

"Wind, solar, biomass, geothermal, hydroelectric, and ocean, which could be tidal, wave current, or thermal type energy that's being pulled from the ocean. It can also be used for energy efficiency improvements. Could be lighting, could be insulation, changing out a furnace or air conditioning system, so there's a lot of different uses for this program."

USDA also has carryover dollars with roughly $70 million in grants for the 2015 fiscal year. With the new Farm Bill, USDA did implement some changes to the program.

"They've added another tier of funding if your project is up to $80,000 it helps with a simplified application. And we've got a new rule that will be coming out that will add some additional language. That rule has not been published yet, so we're waiting on the revisions within that."

Once that rule is published, USDA will provide a template to help with the application process.

"The template will be on the USDA website for renewable energy. The template is not available at this time until the new regulations are released."

In his home state of Iowa, REAP funding has helped fund initiatives such as the Luther College Wind Energy Project.

"They set up this entity to develop a wind turbine and then electricity from the wind turbine was sold to Luther College. Story Wind Energy LLC is an example of that. The entities developed, they built a wind turbine, and then sell the energy to the city."

Finally, Jobe says, the program is a great opportunity for small businesses and agriculture operations.

"It's a great opportunity for ag producers, small businesses, to look at ways in which to create renewable energy or have energy efficiency savings for those ag operations and businesses. Each state does have a program director and business program staff within the state that would be more than happy to assist applicants with developing good quality applications."