EQIP On-Farm Energy Initiative

The Environmental Quality Incentives Program (EQIP) On-Farm Energy Initiative helps farmers and ranchers make voluntary improvements that can boost energy efficiency on the farm. This emerging agricultural trend produces benefits, including reduced input costs, increased productivity per unit of energy consumed by equipment and lighting, and reduced air pollutants and greenhouse gas emissions caused when energy is generated for agricultural use.

Financial assistance is available to inventory and analyze farm systems that use energy and identify opportunities to improve efficiency through the development of an Agricultural Energy Management Plan (AgEMP). The AgEMP, or energy audit, is completed by NRCS-certified Technical Service Providers (TSPs) and provides:

• Itemized energy use by individual systems to establish a baseline for electricity and other fuel improvements,

• Recommendations for equipment improvements and upgrades,

• Potential energy reductions and financial savings for each recommendation

• Cost estimates of potential improvements, and

• Length of expected payback for energy efficiency upgrades

Once an AgEMP or other qualifying energy audit has been completed, eligible producers can apply for EQIP assistance for the purchase, installation, or retrofit of certain buildings or equipment to improve energy efficiency. ** Examples of items eligible for energy efficiency improvements include**:

• Lighting

• Plate coolers

• Ventilation and fans

• Irrigation pumps

• Grain dryers

• Greenhouse improvements

• Maple syrup evaporators

• Heating and refrigeration units

• Insulation and building envelope sealing

• Motor controls and variable speed drive

Individual farmers and ranchers apply directly. This is an EQIP initiative, so EQIP's eligibility is the eligibility — plus one sequencing rule that will trip you up if you skip it.

Who. "Farmers, ranchers, and forest landowners who own or rent agricultural land are eligible" for EQIP, and assistance "can be used on all types of agricultural operations, including: Conventional and organic; Specialty crops and commodity crops; Forestry and wildlife; Historically underserved farmers; Livestock operations." You do not have to own the land — NRCS's own framing is "Do you farm or ranch and want to make improvements to the land that you own or lease?"

The initiative-specific gate: audit first, equipment second. "Once an AgEMP or other qualifying energy audit has been completed, eligible producers can apply for EQIP assistance for the purchase, installation, or retrofit of certain buildings or equipment to improve energy efficiency." The Agricultural Energy Management Plan is itself fundable — "Financial assistance is available to inventory and analyze farm systems that use energy and identify opportunities to improve efficiency through the development of an Agricultural Energy Management Plan (AgEMP)" — and "the AgEMP, or energy audit, is completed by NRCS-certified Technical Service Providers (TSPs)." You cannot go straight to the equipment.

What qualifies at the equipment step. "Lighting; Plate coolers; Ventilation and fans; Irrigation pumps; Grain dryers; Greenhouse improvements; Maple syrup evaporators; Heating and refrigeration units; Insulation and building envelope sealing; Motor controls and variable speed drives." The related practice standards are Energy Efficient Agricultural Operation (374), Energy Efficient Building Envelope (672) and Energy Efficient Lighting System (670).

Where. National in principle, but not automatic in every state: "Targeted EQIP financial assistance is available through several conservation initiatives. See which initiative is available in your state," and "Available practices and practice standards vary by state." Confirm with your local NRCS office that On-Farm Energy is being offered in your state this year.

Paperwork. An AD-1026 must be on file — it "ensures a conservation plan is in place before lands with highly erodible soils are farmed" and that wetlands are protected — and "to maintain eligibility for most USDA programs, producers must comply with wetland conservation provisions."

Priority audiences. "Increased and advance payments available for historically underserved producers (beginning, limited resource, socially disadvantaged, and military veterans.)" A preference, not a restriction.

No thresholds published. Neither the On-Farm Energy Initiative page nor the EQIP page publishes an acreage minimum, income floor or ceiling, or years-of-experience requirement.

Timing. "Applications for EQIP financial assistance are accepted throughout the year. Specific deadlines are set for ranking and funding opportunities within each state." Start at your local NRCS office.

No payment rate, cost-share percentage, or award ceiling is published on the On-Farm Energy Initiative page. This is an EQIP initiative, so the dollars come out of EQIP and the actual amounts are set in your state's NRCS payment schedule for each practice — ask your local Service Center for the current schedule rather than budgeting off this page.

What the page does establish is the two-step structure, which matters for sequencing:

1. Energy audit first. "Financial assistance is available to inventory and analyze farm systems that use energy and identify opportunities to improve efficiency through the development of an Agricultural Energy Management Plan (AgEMP)." The AgEMP is written by an NRCS-certified Technical Service Provider and gives you itemized energy use by system, recommended upgrades, projected energy and dollar savings per recommendation, cost estimates, and expected payback period.

2. Then the equipment. "Once an AgEMP or other qualifying energy audit has been completed, eligible producers can apply for EQIP assistance for the purchase, installation, or retrofit of certain buildings or equipment to improve energy efficiency." Eligible items include lighting, plate coolers, ventilation and fans, irrigation pumps, grain dryers, greenhouse improvements, maple syrup evaporators, heating and refrigeration units, insulation and building envelope sealing, and motor controls / variable speed drives.

Payment mechanics, per NRCS: you sign a contract, implement to NRCS standards and specifications within a set window, and "Once the work is implemented and inspected, you'll be paid the rate of compensation for the work if it meets NRCS standards and specifications" — reimbursement after the fact, so you finance the purchase up front. "Applications for NRCS conservation programs are ranked and funded at key times throughout the year." Some producers may also qualify for an EQIP advance payment; ask about the Advance Payment Option if cash flow is the obstacle.

Once an Agricultural Energy Management Plan (AgEMP) or other qualifying energy audit has been completed, eligible producers can apply for EQIP assistance for the purchase, installation, or retrofit of certain buildings or equipment to improve energy efficiency. 

Applications for EQIP​ financial assistance are accepted throughout the year. Specific deadlines are set for ranking and funding opportunities within each state. The best way to learn if EQIP is a good fit for you is by contacting your local NRCS office. If you choose to move forward, your local NRCS conservationist will guide you through applying for the program.

• NRCS Energy Page