The U.S. Department of Agriculture has finalized rule changes to the Rural Energy for America Program, or REAP, that advocates say effectively kill solar development for farmers and rural small businesses. The new rules, which took effect October 16, make solar projects ineligible if any component comes from a country designated as a foreign adversary. Since much of the solar supply chain runs through China, the change blocks most new farm solar systems from receiving grants or loan guarantees.
REAP has long helped farmers offset the high upfront cost of solar installations, which can run tens of thousands of dollars. Supporters say the systems lower utility bills and let producers sell excess power back to the grid, a financial cushion when input costs are high. The USDA defends the change by saying it will stop fertile farmland from being repurposed for solar, but critics note that farmers apply voluntarily and that the agency has ignored the economic benefits.
The rule is the latest in a series of rollbacks. In August 2025, USDA altered REAP criteria after President Trump's executive order against subsidizing wind and solar. In March 2026, the agency paused REAP entirely, then published the new final rule this month. The Iowa Farmers Union, Earthjustice, and the Environmental Law and Policy Center filed suit in late September, arguing the USDA is violating the REAP statute and the Administrative Procedure Act by reversing the program's purpose and promoting fossil fuels instead.