Loan financing and grant funding to CA ag producers
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Loan financing and grant funding to CA ag producers

May 13


The USDA's Rural Energy for America Program is accepting applications. California Ag producers and rural small businesses in eligible areas can get loan financing and grant funding for:

  • Renewable energy systems
  • Making energy-efficiency improvements
  • New energy-efficient equipment
  • System loans for agricultural production and processing

Who may apply?

  • Agricultural producers with at least 50 percent of their gross income coming from agricultural operations.
  • Small businesses in eligible rural areas.

NOTE: Agricultural producers and small businesses must have NO outstanding delinquent federal taxes, debt, judgment, or debarment.

What is an eligible area?

  • Businesses must be located in rural areas with populations of 50,000 residents or less. 
  • Check eligible business addresses.
  • Agricultural producers may be in rural or non-rural areas.

How may the funds be used?

Funds may be used for renewable energy systems, such as:

  • Biomass (for example, biodiesel and ethanol, anaerobic digesters, and solid fuels).
  • Geothermal for electric generation or direct use.
  • Hydropower below 30 megawatts.
  • Hydrogen.
  • Small and large wind generation.
  • Small and large solar generation.
  • Ocean (tidal, current, thermal) generation.

Funds may also be used for the purchase, installation, and construction of energy efficiency improvements, such as:

  • High-efficiency heating, ventilation, and air conditioning systems (HVAC).
  • Insulation.
  • Lighting.
  • Cooling or refrigeration units.
  • Doors and windows.
  • Electric, solar, or gravity pumps for sprinkler pivots.
  • Switching from diesel to electric irrigation motor.
  • Replacement of energy-inefficient equipment.

Agricultural producers may also use guaranteed loan funds to install energy-efficient equipment and systems for agricultural production or processing.

Read more about the USDA REAP program overview, requirements, and how to apply here.