Agricultural Cooperative Energy Savings Act of 2025
- Sponsor
- Rep. Johnson, Dusty [R-SD-At Large]
- Committees
- Agriculture Committee (primary)
- Last action
- Dec 2, 2025
Bottom line
This bill broadens access to USDA energy-related programs for mid-sized agricultural cooperatives, potentially increasing their ability to invest in energy efficiency and renewable energy projects.
What it actually does
The bill expands eligibility for certain United States Department of Agriculture (USDA) programs, specifically those under Section 9007(c)(1)(A)(i) of the Farm Security and Rural Investment Act of 2002, to include agricultural cooperatives that have fewer than 2,500 employees. This change allows a new category of entities to access programs previously limited to other types of rural businesses or individuals, primarily those focused on energy efficiency and renewable energy.
Proponents argue
Supporters argue that agricultural cooperatives are vital to rural economies and play a crucial role in the food supply chain, yet many have been excluded from federal energy assistance programs due to existing eligibility criteria. Expanding eligibility to cooperatives with fewer than 2,500 employees will enable these entities to adopt more sustainable energy practices, reduce operational costs, and enhance their competitiveness, ultimately benefiting rural communities and the agricultural sector.
Opponents contend
Critics might contend that expanding eligibility without corresponding increases in program funding could dilute the impact of existing programs for current beneficiaries, potentially leading to smaller awards or increased competition for limited resources. Some may also argue that the 2,500-employee threshold is arbitrary and could still exclude many smaller, truly family-run operations, or conversely, include cooperatives that are already well-resourced.
The bill text is exceptionally short and can be read in under a minute, making it highly accessible for public review.
Section 2
Expansion of Eligibility for USDA Energy Programs
This section amends existing law (7 U.S.C. 8107(c)(1)(A)(i)) to allow agricultural cooperatives with fewer than 2,500 employees to be eligible for certain United States Department of Agriculture (USDA) programs. Previously, these programs were generally available to rural small businesses, agricultural producers, and other rural entities. The amendment specifically targets cooperatives that might have been too large to qualify as small businesses but are not large corporations, enabling them to apply for assistance related to energy savings and renewable energy.
Supporters argue
Proponents argue that agricultural cooperatives are often significant employers and economic drivers in rural areas, but their unique structure (often larger than a typical small business but not a publicly traded corporation) has historically limited their access to federal support designed for rural development or small businesses. This expansion addresses that gap, allowing these cooperatives to invest in modern energy solutions, which benefits their members, employees, and the broader rural economy.
Critics contend
Opponents might argue that the expansion could strain existing program budgets, potentially reducing the average award size or success rate for entities that were already eligible, such as individual farmers or very small rural businesses. They might also question whether cooperatives of this size truly need federal assistance, suggesting they may have sufficient private financing options.
Tradeoffs
The bill balances the desire to support a key segment of the agricultural economy (mid-sized cooperatives) with the potential for increased competition for finite federal resources. It aims to fill an eligibility gap but might inadvertently dilute the impact for other deserving applicants if funding levels remain static.
The bill amends Section 9007(c)(1)(A)(i) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8107(c)(1)(A)(i)). This section of the U.S. Code refers to the Rural Energy for America Program (REAP), which provides grants and loan guarantees for renewable energy systems and energy efficiency improvements for agricultural producers and rural small businesses.
Section 2
Why it matters:This is standard legislative practice for amending existing law, not an attempt to obscure.
Case for: Using statutory citations ensures precision in amending the law and avoids redundancy by not reprinting existing legal text.
Case against: It requires external research for a layperson to fully understand the implications of the amendment.
Estimated impact: The impact is on the eligibility criteria for the Rural Energy for America Program (REAP), a significant USDA program.