Ag Secretary Vilsack announces $124M in funding for smaller farms and rural businesses

U.S. Secretary of Agriculture Tom Vilsack was in Omaha Thursday and announced about $124 million in grant and loans to smaller farms and rural businesses across the country, including nearly 20 in Nebraska. (Cindy Gonzalez/Nebraska Examiner)

OMAHA — U.S. Agriculture Secretary Tom Vilsack visited Omaha Thursday and announced $124 million in grants and loans to projects in 44 states aimed at saving energy and creating more income streams for smaller farmers and rural businesses.

The heftiest award — nearly $4 million — went to Nebraska’s Bluestem Systems to help boost a creative process that removes water and pathogens from manure. In doing so, the company produces dry fertilizer and recycles the water for on-site use.

About 75 people attended an event featuring U.S. Agricultural Secretary Tom Vilsack at the University of Nebraska at Omaha. (Cindy Gonzalez/Nebraska Examiner)

Bluestem’s grant is part of the USDA’s Fertilizer Production Expansion Program (FPEP). Funding for other projects comes via the Rural Energy for America Program (REAP).

Eight projects in Arkansas are getting grants from REAP. Six of those involve solar energy.

In all, Vilsack said, the 542 projects — most of the awards range from about $7,000 to $1 million — are expected to advance President Joe Biden’s pledge to expand clean energy and allow small- to mid-sized farm and rural operations a better chance at competing with larger counterparts.

Among recipients were 19 Nebraska entities.

Record farm income, but bounty is concentrated

To a group of about 75 people at the University of Nebraska at Omaha, Vilsack described key challenges faced by most farmers. Since 1981, he said, the nation has lost some 545,000 farms and 155 million acres of former farmland.

While the nation has enjoyed record farm income in the last few years, he said, the income has been concentrated among about 7% of s farms that cumulatively collect up to 89% of the bounty.

Part of the answer to shrinking rural communities, Vilsack said, is to provide access to funding via programs such as REAP and FPEP. Such monies, he said, open the door to creating other “value-added” opportunities and sources of income for farmers.

Instead of “get big or get out,” Vilsack said: “The word is entrepreneurial.”

Among a panel of guests that shared stories with the agriculture secretary was the manager of the last grocery store standing in Superior, Nebraska.

Jenny McCord of Ideal Enterprises spoke of how a REAP grant helped update the family-owned business and, ultimately, helped keep the lights on.

The funding was used to modernize freezer systems in the 75-year-old market, saving substantially on energy and utility costs. Along with her husband, McCord said, her two sons are among those who work in the business, which is a lifeline to the town’s economy.

“If the grocery store closes in town, the town starts to die,” she said.

Fertilizer mix, recycled water

Russ Vering, owner of Bluestem Systems, based in Howells, Nebraska, also was on the panel. He said the nearly $4 million FPEP award headed to his business will help construction and equipment purchases at two Nebraska locations and another in Iowa.

Vering said the funding more specifically will accelerate development of Bluestem’s process that removes water from manure and separates remaining solid nutrients to create a fertilizer mix. The water is recycled for use in the plant, Vering said — nearly eliminating the need to haul away water and thereby also reducing traffic on the roads.

“We’re excited,” Vering said. “We’re going to make a great impact on farms in Nebraska by reducing costs and defining sustainability.”

Ag Secretary Tom Vilsack listens to ag experts at UNO event. Second from the left is Russ Vering of Bluestem Systems, which was among grant and loan recipients announced Thursday. (Cindy Gonzalez/Nebraska Examiner)

Vilsack spent more than an hour participating in the roundtable discussion and talking to the audience about the Biden administration’s investment in rural communities nationwide.

Of the newly announced grants and loans, Vilsack said, “Investments announced today will expand access to renewable energy systems and domestic fertilizer, all while creating good-paying jobs and saving people money that they can then invest back into their businesses and communities.”

Vilsack told the Omaha audience that investment into such programs will help revive the rural economy and contribute to the nation in other ways.

“Food security is national security,” he said.

He said rural communities produce youths who grow up practicing the value of “giving back” to community and country.

“It’s a great new day,” he said after outlining USDA programs. “I’m very optimistic.”

Arkansas REAP awards

• Collier Auto Supply Inc., Harrison, $45,567, to install a 51.3 kilowatt (kW) solar array. The project is expected to save $3,365 and replace 67,347 kilowatt hours (kWh) annually (99 percent of historic usage).

• NEA Veterinary Clinic Inc., Corning, 33,688, to install a 49.68 kW solar array. The project is expected to save the clinic $6,443 and generate 80,228 (kWh) annually.

• Papoloco LLC, a commercial leasing company, $69,084,  to install a 48.5 (kW) solar array for a shopping center in Wynne. The project is expected to generate 72,631 (kWh) and save $5,728 annually.

• B, E & S Partnership, an agricultural producer in Hoxie, $49,655,  to install an energy efficient grain monitoring system for their grain bins. The project is expected to save $21,063 and 295,893 (kWh) of energy annually.

• Batteau Blackwood Farms LLC, $48,600, to install a 54 kW solar array on a property that is being rented to a commercial manufacturing operation in Witter. The project is expected to save $5,083 and replace 68,809 kWh (122 percent of historic usage) annually.

• DKWright Properties LLC, $27,802, to install a 9.4 kW solar array to a commercial rental property in Hector. The project is expected to generate 11,293 kWh annually.

• Ink Properties LLC, $32,363, to retrofit an existing renewable energy system for a rental cabin in Harriet. The discontinued use of a generator will save 2,282 gallons of propane annually.

• Curtiss Scott, a poultry producer, $39,375, to install a 32 k) solar array for his poultry operations in Cave City. The project is expected to replace 46,772 kWh annually (73 percent of historic usage) and save $4,958 per year in energy costs.

Sonny Albarado of the Arkansas Advocate contributed to this report.

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