By SARAH B. AUBREY
Indiana Correspondent

FISHERS, Ind. — Along with Indiana representatives, the USDA hosted a series of renewable energy outreach meetings around the state to educate producers, project developers, energy companies, suppliers and county officials about the availably of USDA dollars for renewable energy and energy efficiency projects, through the Section 9006 program.

“These are good odds; we do a lot of other stuff every day with (worse) odds,” quipped Jerry Hay, USDA specialist from Deputy, Ind.

His comments came in light of learning the amount of grant and guaranteed loan dollars available. The meetings also covered the USDA’s Value-Added Producer Grant (VAPG). The final meeting was held April 29 in Fishers.

Hay explained the Renewable Energy and Energy Efficiency grant program that is part of the farm bill, which offers grant and guaranteed loan dollars for agricultural producers and rural small businesses to either improve the energy efficiency of existing structures (such as grain dryers or some livestock facilities) or to develop renewable energy projects (such as anaerobic digesters).
He said that for approved applicants, the grant program covers up to 25 percent of total project cost, while loans through the program can cover up to 50 percent of total cost. Utilizing both programs – a combo application – can only cover up to 50 percent, most likely as 25 percent grant, 25 percent USDA guaranteed loan. The deadline for applications is June 16.

Mark Beckman, also with USDA, presented information about its guaranteed loan programs. He reminded the audience that USDA does not make loans, as the money is still borrowed from any interested lending institution, but rather that USDA’s role is to guarantee up to 80 percent of the loan from default. With that guarantee, Beckman said some banks are more willing to finance projects.

“We find that businesses that use our programs tend to grow faster,” he said.

While the deadline is approaching, USDA officials said they are willing to review applications if help is needed.

Several other organizations offered solutions to producers and businesses seeking assistance. Shannon Zezula discussed programs available through the National Resource Conservation Service, Paul Cummings offered solutions available through the Indiana Office of Energy and Defense and Chad Martin, renewable energy extension specialist, described Purdue University’s role in supporting the 9006 program and projects for Indiana.

Officials advised producers and business leaders if they can’t get a project together for 2008, to consider starting their 2009 applications now.

“I realize the farm bill hasn’t passed yet, but we’re betting renewable energy is going to be in it,” Hay said of Section 9006 dollars being available next year.

For more information, visit www.rurdev.usda.gov/regs or www.grants.org

Send completed applications to: Indiana Rural Development, 5975 Lakeside Blvd., Indianapolis, IN 46278-1996.

This farm news was published in the May 7, 2008 issue of the Farm World, serving Indiana, Ohio, Illinois, Kentucky, Michigan and Tennessee.