USDA offering grants for farm-size renewable energy projects.(ENERGY)

Kiplinger Agriculture Letter, The, May, 2004

USDA is offering grants for farm-size renewable energy projects.

Applications for 25% funding of small wind turbines, solar power or ethanol or other bioenergy plants are being accepted through July 19. Awards will total $23 million this year, at about $200,000 per grant.

That can spell profits for energy producers that combine grants with other federal, state and local incentives for alternative energy. A variety of tax breaks, low-interest loans and other government aid are available. Together, they can turn a money loser into a moneymaker.

A highway bill may be the only path to raising biofuel incentives to take full advantage of ethanol's fuel tax credit. In the meantime, chances are dimming for passage of big tax or energy bills this year.