Grain with high moisture content fetches lower prices.
Farmers know that they will get less money per bushel for their grain when they sell it if the moisture content of the grain is too high. For that reason, many farmers solve the problem by drying their grain before they take it to market. However, grain dryers are expensive, which means that many farmers seek grants to help with the cost.
Grain Dryer Basics
Grain dryers work on much the same principle that clothes dryers do, by heating the air in an enclosed space to remove moisture. However, with grain dryers the enclosed space is a fairly large structure, and instead of clothing farmers are drying cereal grains such as corn, rye, oats, wheat, millet and barley. Grain dryers use an energy source, such as gas or propane, to heat the air and to run fans to remove moisture. In addition, some grain dryers have energy saving features that make them less costly to operate.
REAP
Grants for grain dryers come through the federal Rural Energy for America Program (REAP), which was passed as part of the 2008 Farm Bill. The primary focus of REAP grants is on projects that result in energy efficiency improvements or for renewable energy systems. Grants are awarded for varying amounts. For example, in 2010 seven farmers in Wisconsin received a combined total of $343,985 in grants for grain dryers. The largest grant was for $139,758, or nearly one third of the total, while the remaining grants ranged from $16,038 to $49,841, according to the USDA Rural Development office in Wisconsin.
Grant Basics
REAP grants can be used to fund up to 25 percent of the total eligible costs for a project, according to a Farm Industry News report. Grants are also available to replace an existing grain dryer with one that is more energy efficient. The total eligible costs for a grant have a cap of $250,000 for energy efficiency improvements and $500,000 for renewable energy projects. Farmers can apply for REAP grants by contacting the Rural Development State Office in their state.
Applying
There is quite a bit of paperwork involved with applying for a loan. For that reason some farmers choose to work with an energy consultant and experienced grant writer, according to Farm Industry News. Applying for a grain dryer grant from REAP requires giving a detailed description of the project and why it is necessary. In addition, the competition for grant money each year is nationwide, according to REAP.
