Many farmers and ag businesses across the country are facing uncertainty following the USDA’s decision to temporarily pause REAP (Rural Energy for America Program) grant awards.
For many operations, these grants play an important role in helping move projects forward, improve efficiency, and invest in the future of their farms. Kerry Hartwig, Dryer Sales Director works directly with dealers and farmers that count on these grants. He shares, “There’s definitely uncertainty right now, especially for operations that have already started the process. Farmers are trying to plan ahead, and changes like this make those decisions more difficult”
At this time, no new REAP grants will be awarded until updated regulations are finalized, and a new Notice of Funding Opportunity is released. Applications submitted as far back as September 2024 that have not yet been fully contracted may also need to be resubmitted once the program reopens.
While REAP grants are currently on hold, REAP guaranteed loans are continuing.
Prospective applicants are encouraged to continue checking the program website and FAQs for updates as more information becomes available. Bethany Reinholtz, Senior Project Manager at GDS Associates, who has worked closely with Sukup on REAP projects, says, “I know this uncertainty is frustrating, it is for us as well. Given this updated information, I highly recommend that each of you reach out to your local congressman and let them know how this is affecting your farm and/or business.”
Even with the uncertainty, there are still options available for farmers looking to move projects forward. EQIP (Environmental Quality Incentives Program) applications through local NRCS offices are not impacted by the pause and may provide an alternative funding opportunity for some operations. If you have already completed a REAP application, the energy audit of the existing grain dryer can be used for the EQIP grant.
REAP funding has helped American farmers stay competitive while supporting contractors, manufacturers, and rural communities across the country. While current concerns around the program appear tied to products made outside the United States, projects like grain dryers directly support American companies, American jobs, and local economies while helping farmers improve efficiency on their operations.
At Sukup, we know these changes impact families, farm plans, and the ability to invest confidently in the future. Farmers continue to face enough uncertainty already, and funding pauses like this can create additional challenges for operations trying to make long-term decisions.
We encourage farmers to stay informed and continue exploring available opportunities. Agriculture has always been built on resilience, and farmers continue finding ways to move forward, no matter the challenges ahead.