Farmers file lawsuit after USDA bars solar projects from REAP funding
The USDA announced new rules that exclude solar projects from the Rural Energy for America Program, prompting a lawsuit by the Iowa Farmers Union and environmental groups.
On October 16, the U.S. Department of Agriculture implemented final rule changes that bar solar and wind projects on cropland from receiving Rural Energy for America Program (REAP) support, citing a prior Trump administration executive order. Because many solar components are sourced from countries labeled foreign adversaries, the new criteria effectively eliminate new farm-based solar developments. The Iowa Farmers Union, along with environmental NGOs Earthjustice and the Environmental Law and Policy Center, filed a lawsuit claiming the agency ignored the 2008 congressional mandate that created REAP and breached the Administrative Procedure Act.
They contend the rule removes a vital financial lifeline that helps farmers lower utility costs and sell excess power, especially as input prices climb. The USDA offered a rationale of protecting farmland from being overtaken by solar farms, but did not respond to requests for comment before the story ran. The lawsuit seeks to restore eligibility for renewable energy projects under REAP.
Why it matters
The ruling could strip farmers of affordable renewable energy financing, affecting rural economies and climate goals.
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