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Rural electrification grant freeze leaves local farmer in limbo

USDA’s REAP grants frozen by Trump administration in uncertain state as farmers expected to pick up the bill
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AMADO, Ariz. (KGUN) — Local farmer John Rueb of Forever Yong Farm in Amado, Ariz. is facing financial uncertainty after the federal government froze grants for the Rural Energy for America Program (REAP).

The program, which helps farmers and rural businesses invest in renewable energy, was a crucial part of Rueb’s plan to install a solar power system that would provide the farm with completely renewable energy.

“I’m always interested in being energy efficient on our farm,” Rueb said. “We use all-drip irrigation to conserve water. We are cognizant of our environment here and we want to keep our carbon footprint at a minimum and produce as much great produce for our local community as we can.”

Last year, Rueb was awarded a REAP grant that would cover 50% of the $27,000 cost of installing solar panels at his garlic and butternut squash farm.

However, in late January, he learned that the funds had been frozen as part of a broader review of USDA contracts initiated by the Trump administration.

Now, Rueb is left in a difficult financial position, uncertain whether his grant will be honored or canceled.

“I felt a bit betrayed because I thought, if there was somebody I could rely on, it would be, you know, the federal government,” Rueb said.

Despite the freeze, Rueb had already signed a contract with the solar installation company, requiring him to pay a $2,000 nonrefundable fee—money he must pay regardless if the project moves ahead or not.

The REAP program was originally established in the 2008 Farm Bill and later expanded under the 2022 Inflation Reduction Act (IRA) to further support clean energy initiatives in rural areas.

“We’ve seen a lot of success with REAP in Arizona,” said Adrian Keller, Arizona Program Director of Solar United Neighbors (SUN). “It’s doing a lot to help farmers and businesses install solar at a much-reduced cost to keep these businesses afloat and putting money back in the pockets of Arizona farmers and ranchers.”

Farmers like Rueb see REAP as a critical tool to reduce their carbon footprint while making their operations more sustainable.

“It offered me 50 percent of my costs to install the solar program, so I thought it was a no-brainer,” Rueb said. “It was finally a chance for small farmers to compete with agribusinesses and large businesses that are highly subsidized by the USDA.”

Rueb now waits anxiously to hear whether the government will reinstate his grant, allowing him to move forward with his solar project, or if he will be forced to abandon it due to financial constraints.

Keller says he’s heard of other Arizona farmers “in limbo” and sees three main groups of businesses in different stages of grant funding. The first is those who were awarded a grant, already spent the money and are waiting for a reimbursement. The second are those who applied late last year to meet the grant deadline. Keller says they may have hired a grant writer or spent money on the application process and are now unsure of where the grant stands. Finally, there are those who were awarded a grant but have stopped a project due to the uncertainty of the grant’s status.

“It’s really frustrating right now because we’re getting questions from all these folks asking what’s going on,” Keller says. “It’s particularly frustrating for small, local family farmers who have spent money already and now don’t have as much certainty as they did six months ago.”

As of now, Rueb is unsure of how his farm’s solar project will shake out, saying that he’s likely unable to afford the $27,000 price tag for the system.

He says that the farm’s goal of providing organic, healthy food dovetails with the Trump administration’s food and health policy goals.

“Healthy food is part of what the new administration is looking for, so hopefully they’ll come to their senses and see that this is part of it,” Rueb added. “I hope they see the merits of this program. It makes good on all the contracts that they’ve made with thousands of farmers across the country to help local food systems proliferate and make America healthy again.”

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Joel Foster is a multimedia journalist at KGUN 9 who previously worked as an English teacher in both Boston and the Tucson area. Joel has experience working with web, print and video in the tech, finance, nonprofit and the public sectors. In his off-time, you might catch Joel taking part in Tucson's local comedy scene. Share your story ideas with Joel at joel.foster@kgun9.com, or by connecting on Facebook, Instagram or X.