DECATUR, Ill. (WAND) — U.S .Department of Agriculture (USDA) Secretary Tom Vilsack visited the Farm Progress Show to announce $266 million in loans and grants to agriculture producers and rural small businesses.

These businesses will make investments in renewable energy and energy efficiency improvements to lower their energy costs and generate new energy. More than 100 locations in Illinois are receiving this funding. Secretary Vilsack said small farms are diversifying how they make money, which in turn helps them become more resilient.

“There’s $9.7 billion that’s going to be made available to rural electric cooperatives as they transition from fossil-fuel based generation to more renewable generation and they’re going to need farmers to provide that renewable energy source,” said Secretary Vilsack. “The beauty of that is it means additional resources for farmers who are investing more money in processing.”

Secretary Vilsack said the last two years have made records for farm income. But 7.5% of the farming population receives 89% of farm income. This leads to smaller farms closing.

“If you have fewer farming families, you’ve got fewer kids in schools,” said Secretary Vilsack. “If you’ve got fewer kids in schools, schools consolidate. If you get consolidated schools, you got fewer customers for those small town businesses, and they close up.”

The Secretary said this leads to a ripple effect, which closes hospitals and other emergency services.

For more information on who is receiving the grant, visit here.

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