Laura Sherman: Protect Michigan farmers, fund Rural Energy for America Program

EDITOR'S NOTE: The views and opinions expressed are those of the writer and not of Ottawa News Network.

This spring, millions of dollars of funding for the USDA’s Rural Energy for America Program, or REAP, were rescinded by the Trump Administration. As a result, Michigan farmers, acting on the promise of funding for much-needed equipment and efficiency upgrades, were left holding the bag when it came time to pay the bills.

These folks applied for and received approval for reimbursement from the USDA after following the exact letter of the law. Some of these investments cost in the hundreds of thousands of dollars, and farmers often paid the money up front. Then, just as many farmers were lining up the paperwork to receive funds for their investments, the Trump Administration pulled the rug out from under them, rescinding the program’s payouts.

REAP was established in the 2002 Farm Bill and guarantees loan financing and grants for agricultural producers to adopt renewable energy or energy efficiency upgrades. It’s one of the few federal programs that directly helps farmers reduce costs in an industry with razor-thin margins. In 2022, REAP was significantly scaled up by the Inflation Reduction Act, which set aside $1.7 billion over 10 years to give this essential industry better footing.

When the second Trump Administration came into office, it paused the program, but later, after public outcry, resumed processing applications and releasing obligated funds.

Then, in April of this year, the government halted funding once again.

Farmers across Michigan acted on the good faith promise of REAP funding to upgrade HVAC systems, implement other energy-efficient additions and buy cost-saving solar panels.

Allen Bonthuis, vice president of sales and marketing at Michigan EIBC member company Harvest Solar, testified at a state Senate hearing on the matter that the company has 24 affected projects across 18 Michigan businesses.

“Together they represent about $18 million in solar investment, most of it structured around REAP grants covering up to half the project cost,” said Bonthuis. “Of that, $7.7 million in projects are already complete — built, energized, and paid for in full by our customers, who are now waiting for a reimbursement that may never come.”

Over time, these investments save money for farmers and for all Michiganders. According to a report from the Michigan Public Service Commission, for every dollar spent on energy efficiency upgrades, Michiganders amass $3 in energy costs. These investments lower bills for growers and ranchers who can then pass these savings on to their customers.

The sudden pause of REAP funding has hurt farmers, workers, and energy businesses in an already challenging economy stretched thin by rising prices.

A recently passed Michigan Senate resolution calls on the USDA to fully honor its commitment to REAP participants, stating, “the clean energy projects under REAP which have been ripped away by the Trump Administration would provide real financial relief to Michigan farmers, who are now paying the price of skyrocketing monthly energy bills, high fuel and fertilizer costs from the Iran War, and tariffs that diminish their profit on the crops they export.”

Michigan lawmakers must hold USDA accountable. Michigan farmers deserve better, and it’s incumbent upon all of us to safeguard our rich history of agricultural traditions.

— Laura Sherman is the president of the Michigan Energy Innovation Business Council.

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