The Agriculture Department’s embattled program to promote alternative energy sources in farm country is facing a new hurdle.
The Trump administration has paused USDA loan guarantees for biodigesters — the systems that turn farm waste into energy for both on-site or off-site use — citing delinquencies and other troubles.
Biodigesters are funded mainly through USDA’s Rural Energy for America Program, as well as other initiatives at the Rural Business-Cooperative Service. REAP has also seen grants frozen and new restrictions placed on solar panel arrays in the year since the administration took office.
According to USDA, the delinquency rate in the current portfolio of 21 loans for anaerobic digesters is 27 percent, or around $102.6 million in arrears. In addition, the department said it’s seeing a delinquency rate of 43 percent in loans for controlled environment agriculture such as aquaponics, hydroponics and vertical farming — and that loans for those types of projects will also be paused for 90 days.
