USDA’s New REAP Rule Puts Program Out of Reach for Most Farmers, Ranchers, and Rural Small Businesses
On October 1, 2026, the US Department of Agriculture (USDA) published a final rule overhauling the Rural Energy for America Program (REAP), which took effect on October 16. Unfortunately, rather than improving REAP, this new rule flips the script on how the program has benefited small farmers, turning it into a program that drives farm consolidation by disproportionately benefiting the wealthiest farm businesses.
Created in the 2002 Farm Bill, REAP offers grants and guaranteed loans for farmers, ranchers, and rural small businesses to install renewable energy systems and make energy efficiency improvements. Since its inception, REAP has been a popular, bipartisan program with a strong focus on smaller farmer-owned projects, including solar, more efficient grain dryers, irrigation pumps, and cooling systems.
Following an earlier Executive Order seeking to shift federal funding support away from renewable energy, USDA stopped processing pending …