Projects Funded Will Lower Costs and Create Revenue
for Rural Business Owners and Farms
LINCOLN, Nebr., Jan. 30, 2024 – U.S. Department of Agriculture (USDA) Rural Development Acting State Director for Nebraska Joan Scheel today announced that the Department is investing over $14 million in renewable energy and domestic fertilizer projects to lower energy bills, generate new income, create jobs, and strengthen competition for Nebraska farmers, ranchers and agricultural producers.
“The investments being announced today exhibit a fraction of the ways that this funding can be used, and just how wide the impact is on Nebraska’s rural small businesses, farmers and ag producers,” Scheel said. “Our staff here in the state work with folks in these industries every single day and hear about the unique needs of each to help these industry leaders save on their bottom line. Because when rural people thrive, America thrives.”
USDA is awarding $14.4 million for 60 projects in Nebraska, through the Rural Energy for America Program (REAP) and the Fertilizer Production Expansion Program (FPEP).
Today’s REAP awards total $10.5 million for 59 projects in Nebraska. These investments will cut energy costs for farmers and ag producers that can instead be used to create jobs and new revenue streams for people in their communities. For example:
- In Bartlett, NCE Bartlett LLC is using a $1 million grant to install an energy efficient anaerobic digester to create cleaner renewable natural gas. These improvements are expected to save the natural gas producer $1.3 million in electrical costs per year. The digester is expected to generate 19 million kilowatt hours of electricity per year, which is enough energy to power 1,751 homes.
- Janssen Capital Management LLC is using a $21,000 grant to purchase and install energy efficient LED lighting at their car dealership in York. The new lighting is expected to save the business $5,400 in electrical costs per year, which can then be reinvested to grow the business or create new job opportunities. These improvements are also projected to replace 51,100 kilowatt hours of electricity per year, which is enough energy to power four homes.
- In North Loup, Sonpower Industries LLC is using a $65,000 grant to install an energy efficient centrifuge oil extractor at their soybean and seed extraction facility. The new system is expected to save the business $3,400 in electrical costs per year. These improvements are also projected to replace 28,500 kilowatt hours of electricity, which is enough energy to power two homes.
- A grain farm in Union will install a 25-kilowatt solar array that will save more than $2,200 per year in electrical costs. It is expected to replace nearly 36,000 kilowatt hours or 133 percent of the farm’s energy use per year, which is enough energy to power three homes.
- A corn farm in Funk will install a 15-kilowatt wind turbine that will save $4,000 per year in electrical costs. It is projected generate nearly 50,000 kilowatt hours per year, or 73 percent of the farm’s annual energy consumption, which is enough energy to power four homes.
- Open Range Beef LLC will install an energy efficient boiler at their beef processing facility in Gordon, that will save $233,000 in energy costs per year. These improvements are projected to replace 7 million kilowatt hours per year, which is enough energy to power nearly 650 homes.
Projects financed through FPEP will help U.S. farmers increase independent, domestic fertilizer production. President Biden committed up to $900 million through the Commodity Credit Corporation for FPEP. Funding supports long-term investments that will strengthen supply chains, create new economic opportunities for American businesses, and support climate-smart innovation. In Nebraska:
- ARE Properties LLC in Nebraska will build a fully automated fertilizer facility designed to manufacture custom products based on the results of plant tissue and soil samples. All equipment in the facility runs on natural gas with the long-range strategy to retrofit the facility for alternative energy sources in the future.
For a complete listing of today’s investments, visit: https://www.rd.usda.gov/media/file/download/ne-reap-1292024.xlsx.
Today’s announcement is in coordination with U.S. Ag Secretary Tom Vilsack’s recent statement that USDA is investing $207 million for REAP and FPEP awards in 42 states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Wisconsin and West Virginia.
Since 2020, USDA has invested more than $1.6 billion through REAP in 5,457 renewable energy and energy efficiency improvements that will help rural business owners’ lower energy costs, generate new income, and strengthen their resiliency of operations. This includes nearly $23 million for 235 projects in Nebraska alone.
During that same time, USDA has invested more than $166 million in 40 projects nationwide to boost domestic fertilizer production through FPEP. USDA has also taken steps to support producers in leveraging these tools through nutrient management assistance and climate-smart management practices.
Background
The Rural Energy for America Program (REAP) provides grants and loans to help ag producers and rural small business owners expand their use of wind, solar and other forms of clean energy and make energy efficiency improvements. These innovations help them increase their income, grow their businesses, address climate change and lower energy costs for American families.
USDA continues to accept REAP applications and will hold funding competitions quarterly through Sept. 30, 2024. The funding includes a dedicated portion for underutilized renewable energy technologies. For additional information on application deadlines and submission details, see page 19239 of the March 31 Federal Register.
The Fertilizer Production Expansion Program (FPEP) provides grants to independent business owners to help them modernize equipment, adopt new technologies, build production plants and more. Funding helps boost domestic fertilizer production, strengthen competition and lower costs for U.S. farmers. FPEP is part of a broader effort to help producers boost production and address global food insecurity.
Contact USDA Rural Development in Ohio
Information on programs available through USDA Rural Development is available by visiting www.rd.usda.gov/ne, contacting your local Rural Development office, or by following @RD_Nebraska on X.
Rural Development offices in Nebraska url: https://www.rd.usda.gov/contact-us/state-offices/ne
REAP website url: https://www.rd.usda.gov/programs-services/energy-programs/rural-energy-america-program-renewable-energy-systems-energy-efficiency-improvement-guaranteed-loans/ne
FPEP website url: https://www.rd.usda.gov/programs-services/business-programs/fertilizer-production-expansion-program
###