Local farmer Alex Schaefers, owner of his family farm since 1990, recently took advantage of a Rural Energy for America Program (REAP) grant through an energy efficiency application. Alex knew he needed to update his grain dryer, in operation since 2000. The old equipment used a large amount of propane and electricity, in addition to diesel used in a tractor to transport grain through an auger. The new Sukup T-16 continuous flow dryer system and conveyor will save over 500 million BTUs (a unit of measurement for energy) annually. This represents a 73% reduction in energy use for Alex’s grain drying or nearly $8,000 each year. With an eligible project reimbursement of $23,387, the project has a payback period of around 12 years.
Alex first learned of the grant, which offers a 25% reimbursement of total costs on eligible projects, through the Farm Service Agency office in Elkader. He ultimately connected with the Clean Energy Districts of Iowa (CEDI) who has offered free REAP grant assistance for the last year. CEDI technical assistance coach Steve Hopkins met with Alex to discuss his project and helped him to submit the required paperwork. CEDI also offers funds to help cover the cost of an energy audit, required for energy efficiency applications. With the project nearing completion, Alex expressed his appreciation for the CEDI team and their guidance through the sometimes overwhelming documentation requirements.
Alex was admittedly skeptical going into the process, the savings seemed too good to be true. The new system, installed in time for this year’s harvest season, has already proven a reduction in costs. Alex has noticed a 50% reduction in LP alone and no longer requires diesel fuel. Ultimately these savings will provide larger profit margins for Alex. He currently raises dairy and beef cattle in addition to growing crops, a vital mixed-use farm. By spending less on drying costs, Alex can shift to higher yielding corn varieties resulting in more product to sell on the market.
With the rising price of land, inputs, and equipment small family farmers must be creative in finding ways to reduce costs. Energy efficiency improvements, made possible through REAP grants, reduce overall energy use which reduces utility bills. The Clayton County Energy District (CCED) continues to pursue partnerships and grant funding to provide local technical assistance for energy improvements. When farmers spend less on energy they retain more of their hard-earned dollars for other necessities such as higher producing inputs, equipment repairs/upgrades, and living expenses. With inflation rates continuing to rise and strain rural communities, CCED will maintain efforts to reduce energy burden and strengthen the local economy in the process. If you own a farm, local business, or know anyone who may be interested in REAP grant funding, please reach out to kdavis@claytoncountyia.gov for more information.