U.S. ag industry increasing use of renewables

It’s unclear exactly how many U.S. farms are adding renewable energies to their operations, but the numbers are growing, according to an Associated Press article today.

This includes everything from solar photovoltaic panels to hydroelectric generators and methane digesters. And though there are a rising number of financial incentives to implement such clean technologies, the motivation to go green seems to be more of a philosophical decision rather than increasing the bottom line.

A 2007 Farm Census reported that out of more than two million farms, nearly 23,500, or about 1 percent, produced some kind of electricity or energy. A more detailed report is expected in 2009.

And overall renewable energy production increased 5 percent from 2007 to 2008, according to the Energy Information Administration.

AP also reported there were $9 million in grant applications received for only $2.4 million available, authorized by the 2008 Farm Bill. The grant funding is for farm energy audits, a precondition to applying for alternative energy grants.

The U.S. Department of Agriculture (USDA) Rural Development department backed 197 renewable energy projects in fiscal year 2008, with 385 projects expected to be funded for fiscal year 2009.

In 2008, the USDA awarded $35 million in grants and loans for renewable energy systems or to improve energy efficiency in farm and business operations (see USDA hands out $35M for cleantech projects).

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