Grants and guaranteed loan financing are available for eligible ISU Extension clients to reduce energy costs and to plan for and market value added products. These grants and loans are being made available by the Iowa State Office, USDA Rural Development. Two options are available:
- Section 9006 Renewable Energy Systems and Energy Efficiency Improvements Program Incentives to help members save money, reduce energy consumption, and move toward becoming more energy independent.
- Value Added Producer Grants (VAPG) – A helping hand to assist producers in creating and marketing products with an increased value realized because of work of the producers.
Section 9006 – Who is eligible?
Agricultural producers and rural small businesses for business related facilities (not residential). Eligible projects must be located in rural areas or communities of less than 50,000 population. Eligible project costs and purchases must be incurred after submitting an application.
How much financing is available?
The minimum energy efficiency grant is $1500 and can be for up to 25% of total eligible costs. Therefore, the minimum total project cost would need to be at least $6,000. The maximum grant is $250,000.
The minimum renewable energy grant is $2500 and can be for up to 25% of total eligible costs. Therefore, the minimum total project cost would need at least $10,000. The maximum grant is $500,000.
The minimum guaranteed loan is $5000 and can be for up to 50% of total eligible costs. The maximum guaranteed loan is $10,000,000.
If requesting a combination grant and guaranteed loan, a combination of the two types of financing cannot exceed 50% of total eligible costs.
Types of renewable energy projects
Wind, solar, biomass, bio-energy, biogas (anaerobic digestion), geothermal, hydrogen – eligible renewable energy systems must produce or produce and deliver usable energy from a renewable energy source.
Energy efficiency improvements verified by an energy audit
Eligible energy efficiency improvements are “any improvements to a facility, building or process that reduces energy consumption” and can include, but are not limited to the following: Improvements to increase R-value of side-walls or ceilings, more efficient heating systems, environmental computer controllers, changing to more efficient lighting, etc., more efficient ventilation system and cooling system equipment (i.e. baffles, stir fans, exhaust fans, vent boxes, cool cells, more efficient fan shutters and cones, etc.), more efficient pumping systems, commodity handling systems, drying systems, etc. Agricultural tillage equipment, used equipment and vehicles are not eligible.
Energy Audit: the cost of the required Energy Audit and technical report and other professional services (engineering, technical assistance, etc.) incurred in the grant application process are eligible project expenses.
According to USDA, the 9006 Program will help save on operational costs, reduce energy consumption, and help move clients toward energy independence.
Value-Added Producer Grants VAPG
Planning grants up to $100,000 are for such activities as feasibility studies, marketing plans, business plans, and legal evaluations. Working capital grants up to $300,000 are for normal operating expenses, but cannot be used to purchase long-term assets. There is a 50% match requirement.
The projects must evidence an incremental value increase as the result of:
- A change in physical sate (i.e. lamb chops or diced tomatoes)
- Differentiated production or marketing (i.e. organic – as demonstrated by a business plan)
- Product segregation (i.e. identity preserved corn)
- Farm or ranch based renewable energy
Applicants must apply as one of four eligible applicant types:
- Independent producers
- Agricultural producer groups
- Farmer or rancher owned and controlled business
- Majority-controlled producer-based business venture
Past grants have been used for the production of wine, processed meat products, ice cream, wind energy, ethanol, and countless other ventures.
According to USDA, VAPG grants will assist applicants in receiving a greater share of the consumer’s dollar for value-added agricultural products.
Contact Information:
- Iowa Falls – Norm Brus - 641-648-5181
- Waverly – Norm Brus – 319-352-1715
- Tipton – Tom Miller – 563-886-6006
- Mt. Pleasant – Michelle Tobias – 319-986-5800
- Albia – Jeff Kuntz- 641-932-3031
- Indianola – Michelle Moore – 515-961-5365
- Atlantic - Deb Reed – 712-243-2107
- LeMars – Robin Templeton – 712-546-5149
- Storm Lake – Chris Mercer – 712-732-1851
- Humboldt – Kate Sand – 515-332-4411