
| ISSUE 17 |
S a v e o u r F o s s i l F u e l s |
APRIL 2011 |
Many Minnesota Turkey Farm shelters are heated with propane. As of March, the wholesale price of propane was $1.39 per gallon, or roughly $24 per one million BTUs. This compares to Natural Gas ataround $7 per million BTUs.
One particular turkey farm houses up to 240,000 turkeys at a time. These turkeys are slaughtered after about 16 weeks, so the farm produces about $3.25 flocks or 768,000 turkeys per year.
The annual cost of propane is estimated at $3,000,000. As a result, turkey farmers pay up to $3.90 per turkey per year for heat alone. This is not only high but is also increasing each year as the cost of LP gas rises.
This appears to offer an excellent opportunity for Utility savings. Some likely improvements could come from insulation, sunshine and heat storage. EIG is proposing a feasibility study through REAP to investigate cost-saving, energy efficient solutions.
Please let us know about other farm operations that heat with Propane that might be interested in cost savings. You could win a Finder’s Fee.
Please contact us at: 651-757-3393 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it
RURAL ENERGY FOR AMERICA
Sustainable opportunities for wealth, new jobs, and increased economic activity are not only born in the cities and suburbs of America.
The Rural Energy for America Program (REAP), a vital part of the Farm Energy Bill, has been successfully helping farmers, ranchers, rural small businesses and other private entities in rural communities across the country tap into the clean energy resources with funding for renewable energy systems, energy efficiency improvements and feasibility studies.
Since its introduction in 2003, REAP has been extremely successful with over 3,000 project awards. Demand for support continues to outpace resources.
More funding was added in the 2008 Farm Bill. Congress improved REAP with energy technical assistance and feasibility study funding, as well as larger loan guarantees which increased by 250%.
REAP funds span the clean energy spectrum: wind and solar power, manure digesters, small hydroelectric power, biomass for heat and power, and geothermal heating.
Projects might include:
- Solar collectors that concentrate sunlight to run a turbine and electric generator.
- Energy efficient refrigeration for grocery stores.
- Energy efficient equipment and lighting in a restaurant.
- New boiler systems and high efficiency dry kilns.
- Energy conservation and efficiency for offices/warehouses.
- Installing solar thermal (hot air) grain dryers.
- Replacing diesel pumps with electric pumps in irrigation systems.
- Solar thermal (hot water) for meat processing, dairy, hog, and poultry farms.
Grant amounts can be up to 25 percent of eligible project costs. The Energy Efficiency Improvements minimum is $1500 with a limit of $250,000. The Renewable Energy Systems minimum is $2500 with a limit of $500,000.
Guaranteed loans are up to 75% of a project’s cost, from $5,000 to a maximum of $25 million.
Eligible applicants:
- Agricultural producers, farmers and ranchers.
- (who receive 50 percent of their gross income from agricultural operations).
- Rural small businesses (as defined by the Small Business Administration).
- A private entity including a sole proprietorship, partnership, corporation, cooperative, a rural utility, and rural electric cooperatives.
For more information call EIG at 651-757-3393


