Despite all the hoops to jump through, Culver farmer is excited about $822K USDA grant to help them go solar

(Update: Interview with grant recipient Kerry Backsen)

CULVER, Ore. (KTVZ) -- Kerry Backsen has learned a thing or two over the years about running a combination feed mill, 1,300-acre farm, retail store and trucking company with his wife, Trish, on property they bought just over 20 years ago, just outside Culver.

Now, he’s also learned a lot about what it takes to apply for and get a federal grant to switch to solar power for their Haystack Farm and Feeds, an operation spread across 10 buildings for hay and product storage and the like.

And as you might expect, the three-year grant application process has involved a lot of … details.

“Boy, the hoops ya gotta jump through – lordy! There's a whole buttload of paperwork,” Backsen said Friday after the U.S. Department of Agriculture announced an $822,360 grant, one of seven in Oregon under the Rural Energy for America Program.

You may never have heard of their operation – “we fly under the radar,” he said – and they pride themselves on nutritious, locally sourced products, and have made many upgrades over the years – from at least a couple of robots to spending $100,000 on a switch to LED lighting.

 “We have done everything we can to save power,” Backsen said.

Kerry says his wife, Trish Kentner Backsen, runs their retail store, Oregon Feed and Irrigation, and they are adamant about using products made in America and “recycling everything. Even our bags are 100% paper.”

But they are also conservative, so this is not about the politics of climate change and the like. “It’s just smart business,” he said.

They decided to pursue the solar option after Pacific Power began calling them, with an unusual request.

“Every year, they called in the spring and asked if we could shut the mill down” during peak hours, so the utility would not run short of power for others. They apparently would have been paid for the power cutoff in the voluntary arrangement.

“We’ve never got that far – they never said, ‘Shut the mill down,’” Backsen said. “They were just going to businesses to see if they’d shut off their power, so they’d have enough power for folks.”

It helped them decide it was time to go solar. This federal grant will cover about half of the $1.7 million cost of installing the system, and Backsen plans to get the project going at the start of the new year.

“I’m excited about it,” he said.

There will be savings on their energy bill, Backsen figures at $15,000 or so a month, while their new system is expected to replace nearly 1 million kilowatt-hours a year, enough energy to supply 54 homes.

But of course, there are … a few tradeoffs from the USDA grant, which he understands is one of the largest in the state or even nation for a farm operation.

“We have to pay taxes on that money,” Backsen said – some $300K of that $822K. It’s taxable income. They do get tax credits that offset part of that hit.

Oh, and in case you were wondering, this isn’t up-front money: “They give you the grant when it’s all done and (the system) ran for 30 or 60 days.”

--

Earlier info:

The U.S. Department of Agriculture announced $104 million in Rural Energy for America Program grants to farmers and small businesses for clean energy systems, including one of over $822,000 to Haystack Farm and Feeds in Culver.

Among the seven Oregon program grants is a Rural Development investment of $822,360 that will be used to help Haystack Farm & Feeds, a farming operation in Culver, develop a renewable energy system.

The project is expected to save $49,456 per year. It will replace 989,110 kilowatt hours (kWh) (91 percent of the company's energy use) a year, which is enough energy to power 54 homes.

Here's the full USDA news release:

Biden-Harris Administration Invests in Rural Communities to Lower Energy Costs and Create Jobs in 34 States as Part of Investing in America Agenda

Projects Funded by President Biden’s Inflation Reduction Act Strengthen American Farms and Rural Small Businesses

Somerset, Pa., Oct. 3, 2024 – U.S. Department of Agriculture (USDA) Deputy Secretary Xochitl Torres Small announced today that USDA is partnering with farmers and small businesses to expand access to clean energy and lower energy bills through the Rural Energy for America Program (REAP).

“As drivers of our economy, farmers and rural business owners deserve affordable energy,” Deputy Secretary Torres Small said. “That’s why, as part of the Biden-Harris Administration's Investing in America Agenda, I’m proud to announce an additional $104 million in REAP loans and grants that will lower energy costs for farmers and small business and help them expand their operations, all while tackling climate change.”

Today, USDA is investing $104 million in loans and grants that will support over 300 clean energy projects in 34 states. Many of the projects are funded by President Biden’s Inflation Reduction Act, the nation’s largest-ever investment in combating the climate crisis. The projects also advance President Biden’s Investing in America Agenda to grow the nation’s economy from the middle out and the bottom up.

Since the start of the Biden-Harris Administration, USDA has invested more than $2.3 billion through REAP in 7,923 renewable energy and energy efficiency improvements. REAP enables agricultural producers and rural small business owners to expand their use of wind, solar, geothermal and small hydropower energy and make energy efficiency improvements. These innovations help them increase their income, grow their businesses and address climate change while lowering energy costs for American families.

Here are examples of the awards being announced today:

• In Pennsylvania, Schrack Farms Resources LP, an 11th generation farm, will use a grant of approximately $479,000 to replace the engine to its anaerobic digester. The project is estimated to generate 2.7 million kilowatt hours (kWh) per year, which is enough energy to power 252 homes.
• In Alaska, Koniag Inc. will use a grant of approximately $248,000 to install air-source heat pumps at the Kodiak Brown Bear Center near Karluk, which will replace imported diesel fuel with electrical heating powered by renewable energy. The project is expected to save more than $54,000 annually and will replace 96% of the facility’s energy use. It will benefit a community participating in the Biden-Harris Administration’s Rural Partners Network.
• In Arkansas, Community Venture Foundation will use a $250,000 grant to provide REAP application assistance to agricultural producers and rural small businesses in all 75 counties in Arkansas.
• In Kansas, Holton Meat LLC will use a nearly $25,000 grant to purchase and install a walk-in cooler for its meat processing facility. This project is expected to save approximately 78,000 kWh annually, which is enough energy to power seven homes.

The awards will benefit people in Alabama, Alaska, Arkansas, Colorado, Georgia, Hawaii, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Minnesota, Missouri, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Mexico, New York, Ohio, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Utah, Vermont, Washington, Wisconsin and Wyoming.

USDA continues to accept REAP applications and has set aside a portion of the program funds to support underutilized renewable energy technologies, like wind and geothermal power. For additional information, contact a local energy coordinator.

A complete list of all REAP projects is available online.

USDA Rural Development provides loans and grants to expand economic opportunities, create jobs and improve the quality of life for millions of Americans in rural areas. REAP is a part of the President’s Justice40 Initiative which sets a goal that 40% of the benefits from certain federal investments go to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution. USDA Rural Development supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural, tribal and high-poverty areas. Visit the Rural Data Gateway to learn how and where these investments are impacting rural America. To subscribe to USDA Rural Development updates, visit the GovDelivery Subscriber Page.

USDA touches the lives of all Americans each day in so many positive ways. Under the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate-smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.