New Trump rules will make it harder for US farmers to access funds for energy projects

Washington | Reuters President Donald Trump's impending changes to a rural energy program that has distributed billions of dollars in recent years will make it harder for many farmers to access funding for things like solar panels and energy efficiency projects, farmers, energy companies and analysts said.

This is Trump's latest move to reduce government support for renewable energy. While working on these changes, the government this year suspended applications for the Agriculture department's Reap (Rural Energy Program for America).

Over the past decade, Reap has helped finance more than 19,000 energy projects undertaken by North American farmers and small business owners, according to the National Sustainable Agriculture Coalition (NSAC). Projects include solar and wind installations, animal waste biodigesters and energy efficiency improvements.

Between 2014 and 2025, Reap invested more than US$4.8 billion (R$24.1 billion) in subsidies and loan guarantees in renewable energy and energy efficiency projects, according to NSAC analysis based on USDA data.

Since the U.S. Congress authorized Reap in 2008, the program has allowed farmers who had not yet started a project to apply for grants covering up to half the cost. But under changes released last week that come into effect on October 16, farmers will not be able to apply for financing until they complete a project and demonstrate a year of energy savings.

American farmers have been hit hard this year by Trump's tariff policies and higher fuel and fertilizer costs, and most will have difficulty accessing the program, said Richa Patel, a policy expert at NSAC, noting that Reap projects can cost anywhere from several thousand to hundreds of thousands of dollars.

“For many farmers, this simply won’t be possible, especially considering these times are already so financially uncertain,” Patel said.

A USDA spokesperson said the changes to Reap "are intended to help the program finance actual production and project results, not just projections."