The U.S. Department of Agriculture has announced it would restrict the use of federal subsidies for solar energy projects in favor of protecting farmland, but clean energy advocates say solar gives farmers a higher production value per acre than any traditional crop.

A press release from USDA notes specific funding programs can no longer be used for wind and solar projects. The action, the release said, furthers the department’s goal to end taxpayer support of “unaffordable and unreliable ‘green’ energy sources and ensure the supply chain consists of American products and manufacturing.”

U.S. Secretary of Agriculture Brooke Rollins said in the release the changes will also stop the loss of prime farmland to solar fields. According to the release, the number of solar panels on U.S. farmland has increased by more than 50% since 2012.

Rollins said beginning farmers have a more difficult time entering the agricultural market when they also have to compete with solar projects for land.

“Our prime farmland should not be wasted and replaced with green new deal subsidized solar panels,” Rollins said. “It has been disheartening to see our beautiful farmland displaced by solar projects, especially in rural areas that have strong agricultural heritage.”

Scale in Iowa

USDA defines prime farmland as land with the “best combination” of characteristics for producing food, feed, forage, fiber and oilseed crops. This land must also be available for these uses, per the definition.

According to the Clean Grid Alliance, about 17.5 million acres of Iowa’s 30 million acres of farmland are considered prime agricultural ground.

The Clean Grid Alliance analyzed data from USDA and the power grid for the central U.S. and found that if all of the proposed solar projects in Iowa were built on only prime farmland, it would occupy 0.2% – or about 35,000 acres – of prime farmland in the state.

The alliance report shows in 2025, Iowa had 677 megawatts of solar online, and on about 5,755 acres of land. A view of active, utility scale solar projects in the Midcontinent Independent System Operator, or MISO, power grid shows Iowa has fewer solar projects than surrounding states in the MISO power grid.

Rollins’ announcement also noted solar panels manufactured by “foreign adversaries” could not be used in USDA projects. Rollins said again in a press release Thursday that foreign-made solar panels would not be allowed in USDA projects. This separate release directed agencies to prioritize land use efficiency in power generation projects on National Forest System lands.

According to a 2022 report from the International Energy Agency, China “dominates” solar manufacturing and accounts for more than 80% of the share in all manufacturing stages for solar panels.

The USDA initiative would target the Business and Industry program and the Rural Energy for America Program, or REAP, both of which are under USDA Rural Development.

Per the press release, wind and solar projects are no longer eligible under the Business and Industry program.

Recipients of REAP must ensure any wind or solar installations are “right-sized for their facilities.” The release specifies that ground mount solar photovoltaic systems must be smaller than 50 kilowatts and be able to record historical energy use to remain eligible under the REAP program.

USDA did not detail how it would judge location or solar panel origin as it relates to these programs.

Clean energy advocates say the action restricts farmers’ choices

Andy Olsen, the senior policy advocate for Environmental Law & Policy Center, said in a statement that USDA’s claim to protect farmland was “dubious.”

Olsen said commercial development and data centers are “legitimate threats” to American farmland, while wind and solar projects can “coexist successfully with crops or grazing.”

Olsen argued the REAP program gave farmers and rural businesses “greater freedom” to care for their operations. The program has been used for things like rooftop solar on small businesses or on top of hog barns. Other grants have helped with energy efficiency upgrades at farms and rural businesses.

“Any conversation around protecting farmland should come from thoughtful, balanced input, not blanket restrictions that strip choices from the very people REAP was designed to serve,” Olsen said in a statement.

REAP was established in the 2008 Farm Bill, and funding for the program increased substantially under the Biden administration’s Inflation Reduction Act.

Olsen also said solar and wind projects give farmers the ability to generate energy on their own and to create additional revenue streams.

According to Clean Grid Alliance, Iowa farmers and landowners receive $4.3 million, annually in land-lease payments for solar projects.

The fact sheet from the alliance also notes solar pays significantly more per acre than traditional row crops. According to its data, solar can generate a production value of $11,068 per acre, annually, for farmers. Corn, by contrast, has a per acre production value of about $930. These figures are dependent on the price of electricity and on corn.

Some larger-scale solar projects in Iowa are managed and run by utility companies, including the 150 megawatt Wever Solar Project, operated by Alliant Energy in Lee County.

A spokesperson for Alliant said the company did not seek federal grants from USDA for any of its solar projects and is not impacted by this latest decision from USDA.