# USDA Revises Rural Energy Program Rules

USDA’s final rule changes the Rural Energy for America Program (REAP), which provides grants and guaranteed loans to agricultural producers and rural small businesses for renewable-energy systems and energy-efficiency improvements. Applicants will generally need to apply after projects are fully built and operational. The rule also makes multilocation projects and certain technology applications ineligible, discourages solar and wind installations on cropland, and aggregates funding limits for entities with common management or ownership. The source does not specify the rule’s effective date or the comment deadline.

- REAP applicants and companies supporting project development should account for the post-completion application sequence and the new eligibility restrictions when structuring projects.
- Agricultural producers and rural small businesses can use REAP grants and guaranteed loans for eligible energy projects, but should review how the rule’s limits on cropland installations and commonly managed or owned entities affect their plans.
- Applicants should consult the Federal Register notice and upcoming annual program notices for the effective date, comment deadline, and application details before proceeding.

**Jurisdictions:** federal
**Industries:** Energy & Utilities
**Topics:** Grants & Funding, Policy
**Published:** October 02, 2026

### Government Entities
- U.S. Department of Agriculture (USDA)
- USDA Rural Development
- Rural Business-Cooperative Service (RBCS)

### Key Quotes
> At the same time, we’re protecting productive American farmland from oversized solar developments and ensuring taxpayer-supported energy investments don’t put components from foreign adversaries on American farms.
> — Glen R. Smith, Under Secretary for Rural Development

### Sources
- [USDA Issues Final Rule with Comment Period Ahead of Opening the Application Window for Rural Energy for America Program | USDA](https://www.usda.gov/about-usda/news/press-releases/2026/10/02/usda-issues-final-rule-comment-period-ahead-opening-application-window-rural-energy-america-program) - USDA