Trump-era policy rollbacks stall solar energy projects on US farms

Kentucky sheep farmer Daniel Bell expanded his flock in recent years, requiring a new barn. His remote land lacked access to power lines for heating, so he planned to install rooftop solar panels. To offset costs, he applied for a renewable energy grant through the U.S. Department of Agriculture’s Rural Energy for America Program (REAP)—only to learn the Trump administration had effectively halted grants under the program.

Bell’s situation reflects a broader trend. Many farmers, operating on thin margins, turn to federal programs to reduce electricity costs by installing solar panels on barns, grain elevators, or offices. Others pursue commercial renewable energy leases as an alternative income stream or to utilize fallow land. However, within the first year of President Trump’s second term, two critical federal programs supporting solar energy growth—REAP and the clean energy tax credit—have been rolled back.

The Associated Press and Grist analyzed data on commercial-scale and small-scale rural energy projects nationwide to assess the impact of these policy changes. Their findings reveal that, for the current fiscal year, the USDA has not awarded any rural energy grants or loan guarantees. Reporters contacted roughly a quarter of the nearly 300 developers who proposed agricultural solar projects in the past two years. Many are now preparing to proceed without federal support, while others have already lost millions in investments due to the administration’s revised tax credit policies.

Federal funding shifts under Trump and Biden

Inflation Reduction Act grants significantly boosted USDA’s REAP program beginning in FY2023. Since then, no funding of any kind has been awarded as of September 2025. Federal fiscal years begin on October 1.

Source: USAspending

Bell ultimately pursued an alternative solution. Instead of building on his own property, he requested permission to construct two temporary barns on land owned by a commercial solar operation. In exchange, he would graze his sheep beneath the solar panels, keeping the grass trimmed. If approved, the barns could draw cheaper power from the solar facility. However, not all farmers have such options, and the effects of these policy shifts are uneven across the country. Some projects are stalled due to permitting delays, while others remain on schedule or even accelerate as developers rush to break ground before further policy changes take effect.