USDA ends programs for solar, wind projects on farms

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The U.S. Department of Agriculture announced it will no longer support
solar and wind projects on productive farmland. Agriculture Secretary
Brooke Rollins disclosed the decision in a post on X, framing it as a move
to protect prime soils and farm viability.

Key changes

  • Program stance: USDA to halt support for wind and solar installations on productive farmland.
  • Rationale cited: Preserve farmland for food production and limit land-use pressures linked to large energy projects.

Context

  • Past funding: USDA previously directed over $2 billion to rural renewable energy, including projects via the Rural Energy for America Program (REAP).
  • Land-use footprint: A 2024 USDA study estimated wind and solar affected under 0.05% of U.S. farmland, much of which stayed in agricultural use.
  • Policy shift: Reverses the prior administration’s encouragement of dual-use renewables on farms.

What to watch

  • Implementation details: How the change will be applied across USDA loan and grant programs.
  • Sector impact: Effects on farmers using on-site renewables for cost stability and on developers planning rural projects.

Industry response: Renewable energy groups criticized the move, saying it undercuts farm incomes at a time of volatile commodity markets. Many farmers relied on leasing land for wind turbines or small solar projects as a way to stabilize earnings. Developers also argued that co-locating panels and crops, a practice known as agrivoltaics, proved that farmland could serve both energy and food production needs.

Farmers’ perspective: Some producers expressed disappointment, noting that USDA’s withdrawal of support may restrict access to affordable loans and grants for small-scale renewable projects. Farmers in regions facing rising energy costs said renewable installations were helping them lower utility bills, increase resilience, and diversify revenue streams.

Political framing: The administration defended the decision as a measure to protect national food security, warning that unchecked solar and wind development could raise land prices and reduce land available for crops. Critics counter that the data shows a negligible share of farmland is impacted and that the policy is more ideological than evidence-based.

Broader context: The rollback forms part of a larger federal retreat from clean energy incentives, including cuts to tax credits and subsidies. Analysts estimate that nearly $19 billion worth of renewable projects have been canceled nationwide since early 2025, creating uncertainty for investors and slowing the expansion of U.S. renewable capacity.

Source: Reuters

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