USDA issues feasibility funds

11/17/2011

U.S. Agriculture Secretary Tom Vilsack recently announced the USDA would be providing funds to assist rural agricultural producers conduct feasibility studies for renewable energy projects.

Five projects in Texas were selected to be recipients of the USDA loans through the Rural Energy for America Program. The move is another step toward fulfilling an agreement with the Innovation Center for U.S. Dairy to reduce greenhouse gas emissions from dairy farms by 25 percent by 2020.

"The projects announced today will provide rural small businesses and agricultural producers the opportunity to conduct feasibility studies for renewable energy system installations," said USDA under secretary for rural development Dallas Tonsager. "Eligible intermediaries, such as universities, will receive funds to conduct energy audits which will lead to energy savings and initiatives that will reduce energy consumption for years to come."

Thus far, the USDA has awarded more than $2.4 million in energy audit grants nationwide, as well as more than $1.2 million in support of feasibility study projects.

Last month, Vilsasck announced the USDA would be providing similar grants to 36 organizations in 26 states through the Rural Cooperative Development Grant program, Michigan Farmer reports. The funds can reach as much as $225,000 will be rewarded to colleges, universities and nonprofit groups for projects such as feasibility studies.