The Trump administration changed the rules for financing energy projects

The Trump administration has restricted farmers' access to the federal rural energy program REAP. The new USDA rules, introduced in late September and taking effect on October 16, aim to end budget funding for unreliable energy sources, protect agricultural land from large-scale solar power plants, and reduce components imported from unfriendly countries. Agriculture Secretary Brooke Rollins announced the termination of support for applicants who previously prioritized unreliable sources.

Under the new regulations, projects must be fully constructed, commissioned, and demonstrate actual energy generation, savings, and performance metrics before applying for funding. Previously, the program, launched in the 2000s, covered up to 50% of costs, and applications could be submitted prior to construction. Between 2012 and 2025, the REAP program invested approximately $4.8 billion in projects nationwide.

Analysts and coalitions note that the new requirements make energy-efficiency projects inaccessible to many farmers, especially amid financial uncertainty. The National Sustainable Agriculture Coalition (NSAC) pointed out that this will be a blow to farmers seeking to lower utility costs and struggling with high diesel prices and the administration's trade policy. In response to the new rules, environmental organizations, farm unions (including the Iowa Farmers Union), and associations such as RENEW Wisconsin and ELPC have filed a lawsuit against the USDA.