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KyCGA News

February 19, 2010

Incentives Available for Farmers to Become More Energy Efficient

ARRA On-Farm Energy Efficiency & Production Incentives Program Application

GOAP Press Release

More than $600,000 is available for farmers to "go green" through the 2010 ARRA On-farm Energy Efficiency & Production Incentives Program. This program is administered by the Governor's Office of Agricultural Policy, and applications are due to GOAP postmarked no later than March 26, 2010.

Applicants will be limited to 25% reimbursement for the eligible expenditures not to exceed $10,000 for the life of the ARRA program.

While a number of components and building upgrades are eligible for the incentives program, GOAP senior policy analyst Tim Hughes says corn farmers may want to look at installing or upgrading to an energy efficient grain drying system. Suggested improvements include:

  1. Addition of recirculation of cooling section exhaust air
  2. New dryers with increased column width
  3. Implementation of dryeration
  4. Addition of in-bin cooling

Hughes said other projects could include biomass heaters for farm shops, farm building upgrades which reduce energy consumption, low-pressure irrigation systems and biomass crop production. A list of eligible cost-share items are listed in the application (appendix A).

An additional grant program is available from the USDA Office of Rural Development which provides grants for energy audits and renewable energy development assistance. Hughes said it is possible to receive funding from both entities on the same project.

The application requests that a third-party audit be conducted to evaluate where energy savings could be achieved. Hughes said that the audit is not required, but those that have the audit completed will have an advantage over project requests that do not.  Applicants must include enough information within the application to demonstrate that the investment will provide significant energy related benefits.

Purdue University has a number of self-audit and calculator tools available a farmer may want to utilize to determine if significant energy savings may be achieved. The tools include a grain dryer energy efficiency audit. Go to: http://www.extension.purdue.edu/renewable-energy/on-farm-efficiency.shtml to use the tools.

For questions about the application process for the ARRA On-farm Energy Incentives Program, please contact Bryan Thomas, special projects coordinator, at (502) 564-4627 or bryan.thomas@ky.gov.