Today, the Agriculture Energy Coalition (AgEC) voiced opposition to proposed cuts to crucial agriculture programs in draft fiscal year 2024 appropriations for Agriculture and Rural Development, which will be marked up this morning by the House Appropriations Subcommittee on Agriculture. The draft bill would slash agriculture, nutrition and rural development program funding by more than a third – fully $9 billion below 2023 funding. The agriculture community has not seen support levels this low since 2006.
“USDA’s Rural Development programs enable rural communities and businesses alike to make essential investments in affordable, reliable, clean energy while improving energy security, the environment, public health and helping all of America address climate change,” said Lloyd Ritter, Ag Energy Coalition Executive Director. “Congress made historic investments in agriculture and rural electrification programs last year. Maintaining and growing resources for rural communities is fundamentally important to ensure all Americans have equal access to clean energy.”
“The Rural Energy for America Program is sound public policy that has helped more than 20,000 farms and rural businesses access affordable, renewable energy and energy efficiency systems,” Ritter continued. “The popularity of this program has left some technologies underutilized and underfunded. REAP grants and loans are in demand across rural America and have brought particular benefit to farmers, ranchers, dairy and other rural businesses.”
In the Inflation Reduction Act, Congress provided much-needed funding for the oversubscribed Rural Energy for America Program, including dedicated funding for underutilized technologies. Congress also provided historic funding for rural electrification that is supported by NRECA and the Rural Power Coalition; USDA this week announced funding availability for the New ERA program. The draft legislation would rescind funding for those programs.
AgEC particularly opposes the following provisions of the bill:
- Section 722: would rescind $500 million of unobligated funds made available through the Inflation Reduction Act for the Rural Energy for America Program (REAP).
Section 733: would rescind $3.25 billion of unobligated funds made available through the Inflation Reduction Act for USDA assistance to Rural Electric Cooperatives.
