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Aug. 22, 2024 |  By: Deborah Van Fleet - Public News Service

Federal funds back renewable energy, efficiency upgrades for NE ag, small business

agriculture

By Deborah Van Fleet - Public News Service

Nebraska ag producers and small businesses have until Sept. 30 to apply for the latest funding round of the U.S. Department of Agriculture's Rural Energy for America Program, part of the Farm Bill providing grants and guaranteed loans for renewable energy systems or energy efficiency improvements.

The Inflation Reduction Act included nearly $2 billion for projects under the program.

Christopher Faber, state energy coordinator for Nebraska USDA Rural Development, said the legislation also increased the percentage of funding allotted to grants from 25% to 50%.

"To be eligible for those projects, you either need to be an agricultural producer which would be involved in the day-to-day operations of the farm production and at least 50% of their income would come from that, or be a rural small business and be in a population area of less than 50,000," Faber explained.

Darr Grain in Cozad is building two wind turbines with the help of funding from the program which could save the company as much as $10,000 a year in electricity costs. Faber pointed out free grant-writing assistance is available for those wanting help with the application process.

Funding from the program allowed fourth-generation farmer and rancher Alan Koelling in Ord to purchase a new centrifuge for his family's sunflower oil company, Simply Sunflowers. Koelling said not only is the centrifuge more energy efficient, it was instrumental in growing their business.

"We hit a bottleneck, and the centrifuge was a big help in speeding up our process of cleaning our oil," Koelling explained. "As we can increase production, we can naturally increase our sales."

Koelling acknowledged it might have been years before they were able to purchase the centrifuge. The funding allowed them to increase production at a time when there was a void in the supply of sunflower oil. He added it also made it possible for them to employ several people part-time, which was one of their goals.

"Because it's really challenging in rural Nebraska to make ends meet with one income, and this gives families a chance for a supplemental income," Koelling noted. "Sometimes that's just enough to make life easier and better for a family."

Rural Energy for America Program funding is part of the Biden-Harris Justice 40 Initiative.