A new federal rule could make it harder for farmers to finance projects related to clean energy.
The regulations require farmers to complete projects and document a year of energy savings before applying for funding. The U.S. Department of Agriculture said the changes are intended to streamline its Rural Energy for America Program (REAP) and ensure funding decisions reflect actual project performance.
There have been 17 applications for REAP from Wyoming but only one project was announced in 2023. That project received over $11,000.
Chad Hughes, senior associate attorney, Environmental Law and Policy Center, said requiring farmers to cover costs up front could put federal assistance out of reach for smaller operations.
"Only those that can afford to carry those costs for over a year without knowing whether or not they're going to be reimbursed are going to be able to apply for REAP. So it's going to make the program just much less accessible," Hughes contended.
Hughes pointed out the changes also limit wind projects on certified cropland. They took effect Oct. 16. Farmers and rural businesses can comment through Nov. 2 at Regulations.gov. Although the rule is already active, the Department of Agriculture said the feedback could influence future program revisions.
The guidelines follow earlier USDA restrictions on solar funding, which applied retroactively to pending applications. The Environmental Law and Policy Center sued the agency in September, arguing the policy conflicts with Congress’ intent for the program to support renewable energy projects. Hughes stressed the agency cannot restrict renewable energy to favor fossil fuels.
"The law has these basic principles of fairness baked in. You can't just change the rules in the middle of the game like that unless you have a really good reason to do so, and USDA just has not identified such reason," Hughes underscored.
From 2023 through 2025, the program supported nearly 7,000 projects and generated an estimated $2.75 billion in rural economic development. A USDA report showed the bipartisan program generated or saved enough energy in 2024 to power more than 300,000 homes.
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