The USDA is providing funding to look at the feasibility of renewable energy systems for agriculture producers and rural small businesses.

Grants of up to $50,000 each for a total of $3 million will be made available under the Rural Energy for America Program (REAP):

“Renewable energy production represents a promising revenue source for America’s producers while meeting the nation’s need for new sources of renewable energy,” [Agriculture Secretary Tom Vilsack] said. “These grants will help encourage the development of viable renewable energy projects across the nation and help small business owners, farmers, ranchers and agriculture producers conduct feasibility studies that identify renewable energy opportunities.”

Eligible feasibility studies for renewable energy systems include projects that will produce energy from wind, solar, biomass, geothermal, hydro power and hydrogen-based sources. The energy to be produced includes heat, electricity or fuel. For all projects, the system must be located in a rural area, must be technically feasible and must be owned by the applicant. More information is available by visiting http://www.rurdev.usda.gov/BCP_ReapGrants.html.

Deadline for application is October 5, 2010.