Success StoryGrain Farmers Can Increase Profits by Reducing Drying Costs
Grain Farmers Can Increase Profits by Reducing Drying Costs
Author: Sam McNeill
Planning Unit: Biosystems & Agr Engineering
Major Program: Grains
Outcome: Long-Term Outcome
Describe the Issue or Situation.
The USDA Rural Development Office in Kentucky and the Kentucky Agricultural Development Board made cost-share funds available in 2024 for energy efficiency projects on farms and small rural businesses. Both programs required an energy assessment as part of the cost-share application. UK Cooperative Extension Service engineers from the Biosystems and Agricultural Engineering Department were asked to provide technical assistance in the form of energy assessments for potential program applicants.
Describe the Outreach or Educational Program Response (and Partners, if applicable).
Producers used the energy assessments to apply for cost-share funds to replace old grain dryers with more energy efficient units on their farms. Approximately half of the project cost was supported by cost-share funds with growers contributing the remaining amount. This project has been a collaborative effort with USDA Rural Development (KY Office), Kentucky Office of Agricultural Policy, and private, third-party grant writers.
Provide the Number and Description(s) of Participants/Target Audience.
This team provided energy assessments and technical reports to replace three grain dryers on farms in Davies, Marshall, and Union counties that applied for cost-share funds from one or both available programs.
Provide a Statement of Outcomes or Program Impact. Please note that the outcomes statement must use evaluation data to describe the change(s) that occurred in individuals, groups, families, businesses, or in the community because of the program/outreach.
The total project costs for these farms amounted to $1.37 million and the total amount in grants received was $683,552 ($227,851 per farm). Additionally, the total annual value of energy savings with current prices for drying fuel (LP or natural gas) was $52,274 per year ($17,425 per farm). The estimated average simple payback period for all projects was about 17 years after applying cost-share assistance that was received by the growers.
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