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Experts issue warning after new USDA policy ends major farming incentives: '[It] is going to hurt … efforts to keep their businesses surviving'

According to FarmAid, many family farms operate on a "razor-thin" profit margin.

According to FarmAid, many family farms operate on a "razor-thin" profit margin.

Photo Credit: iStock

The U.S. Department of Agriculture dealt another blow to beleaguered farmers, announcing the abrupt end of consequential federal investments primarily affecting the Midwest, per NOTUS

During a visit to Lebanon, Tennessee, agriculture secretary Brooke Rollins revealed new restrictions on the Rural Energy for America Program (REAP), a program "especially popular" in rural districts.

REAP supplies grants and guaranteed loans for farmers to make farms more energy efficient and affordable to run, typically through investments in renewable energy, like wind and solar

According to FarmAid, many family farms operate on a "razor-thin" profit margin, and NOTUS indicated that one affected grant for a poultry farm would save the business $21,000 a year.


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REAP is not a new program; it was first introduced in the 2003 Farm Bill, an "omnibus," recurring form of legislation aimed at appropriating agricultural funds. In an August press release, the USDA claimed federal investments in clean energy made farmland "more expensive and less available."

"Within the last 30 years, Tennessee alone has lost over 1.2 million acres of farmland and is expected to lose 2 million acres by 2027," the USDA asserted. 

Although it's true that Tennessee has "lost" farmland and high prices are a known barrier, WTVF explained that land development was the primary reason for that.

Renewable energy options, such as solar panels, are one of the most effective ways to reduce high energy costs, both on farmland and in residential areas. Installing solar panels doesn't just reduce planet-warming pollution; it can also bring home energy costs down to $0. 

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In short, family farms face another economic setback as the USDA moves to gut REAP. 

National Sustainable Agriculture Coalition policy expert Richa Patel questioned the wisdom of "targeting popular farmer programs instead of actually addressing the underlying issues."

The USDA "could potentially hurt farmers in their efforts to save on costs, which fundamentally is going to hurt them in their efforts to keep their businesses surviving," Patel warned. 

Energy consultant Bruce Everly has assisted several small farms with REAP, and he concurred. REAP "has been key to helping people who don't have a lot of assets make a change and provide some cash flow for their family," Everly said, citing "desperately needed" upgrades.

On Sept. 10, the National Resources Defense Council decried the announcement but reminded farmers that "hope remains," as several "of these changes to the USDA are not yet final."

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