Farmers across America face tough choices about renewable energy projects on their land as Trump’s impact on biogas begins to take effect. Many worry about Trump's plans for biogas and biomethane development during his second term in office. The changes in federal support and regulations have left farm owners unsure about investing in methane capture systems.
Recent shifts in U.S. energy policy under Biden have changed the landscape for renewable fuels for the better. But, Trump is now back in office. The Trump administration has already withdrawn the US from its global involvement in climate change reduction. Last time it rolled back several greenhouse gas rules and cut funding for renewable projects.
Similar changes this time will affect how farmers can turn farm waste into valuable energy.
Our guide breaks down Trump's impact on biogas development and our thoughts on what it means for your farm business. We'll explore new funding options, market changes, and smart ways to adapt your energy plans.
The future of farm-based renewable energy hangs in the balance, and you need clear answers now.
Key Takeaways
- Trump's rollback of greenhouse gas rules and £11 million funding freeze hit farm-based biogas projects hard, forcing many farmers to return to traditional energy sources.
- Even Basic methane capture systems now cost £250,000 to £1 million, making it tough for small farms to switch to renewable energy without federal support.
- Private investors and companies like Shell and BP that were stepping in to fund biomethane projects now say that they are reducing investment.
- The EU and the UK have failed to include carbon credits in their carbon offset trading schemes. There is hope that this will be reversed and help farmers sell carbon credits to national and international buyers, especially in Europe and Asia.
- New process monitoring equipment devices and sensors is improving AD plant operational reliability. The best facilities can capture up to 85% of methane emissions from farms, according to US EPA data. These tools create more and better quality clean energy and the result is extra income for farmers with Ad plants.
- Dr Sarah Mitchell from the Renewable Energy Research Institute suggests farmers start small and secure long term feedstock supplies or organic waste purchase agreements before making major investments in biogas projects.
Trump’s Policy Shifts on Renewable Energy
The Trump administration seems certain to shift U.S. energy policy away from renewable sources through major regulatory changes. The White House rolled back clean energy initiatives in his first presidency, and they are likely to cut funding for renewable projects again this time, while pushing for more oil and gas production across the country.
Rollback of greenhouse gas emission regulations
Trump's rollback of greenhouse gas rules has changed farming practices across America. His administration has lifted limits on coal-fired power plants.
This will make it easier for farms to use traditional energy sources, but any such benefits are unlikely to counter the raised costs and heightened mental strain on the farming community caused by a less reliable climate.
Many farmers saw reduced costs in their daily operations due to these relaxed rules on emissions.
Power plants now face fewer restrictions on emissions, creating a shift in rural energy markets, says Lee Zeldin, former U.S. Representative.
These changes will spark debate in farming communities about clean air standards. due to Trump’s impact on biogas, farmers will gain more freedom in their energy choices, yet face questions about long-term environmental impacts.
Rural areas will notice less pressure to switch to renewable energy systems, while most will be worried about future climate effects on crops.
Support for traditional energy sectors
The U.S. Environmental Protection Agency will back fossil fuel growth through reduced regulations on coal, oil, and natural gas sectors. Federal support will be expected to shift away from renewable projects, with direct funding cuts to biomethane development programmes.
The Rural Energy for America Program faced major setbacks as the USDA froze vital funds meant for farm-based energy projects.
Traditional energy companies received tax benefits under the Tax Cuts and Jobs Act, in 2018, while renewable energy initiatives struggled to maintain momentum. As a result many farmers lost chances to create new income streams from biogas projects due to these policy changes and a similar outcome is predicted this time.
During the previous Republican administration under Trump the Department of Energy focused its research grants on conventional fuel sources rather than agricultural waste-to-energy solutions. This shift left many agricultural communities without the tools needed to modernise their energy systems.
Promises to expand crop based biofuel production
Trump pledged strong support for biofuel production during his first presidency, focusing on year-round E15 sales. His administration pushed for changes to the Renewable Fuel Standard (RFS), aiming to boost biomass-based diesel and advanced biofuels.
Farmers received promises of expanded market access through reduced import tariffs on biofuel products.
Rural communities did see direct impacts from Trump's biofuel expansion plans through USDA renewable energy programmes. These initiatives linked closely with the RFS and Renewable Identification Numbers (RINs), creating new income streams for farmers. But, unfortunately without anaerobic digestion these schemes rely on chemical fertilisers and their sustainability is highly questionable.
Next, we'll explore how Trump's policy impacts shifts affected biogas and biomethane growth across farming regions.
Impacts on Biogas and Biomethane Development
Already at less than 2 months into the new Trump administration federal support for biogas projects has dropped sharply due to policy changes, leaving many farmers to face tough choices about their renewable energy plans.
We predict that due to Trump’s impact on biogas the USDA's renewable energy programmes will now move at a slower pace, which affects methane capture systems and farm-based energy projects across the country.
Reduced federal funding for renewable projects
Farmers will face steep cuts in renewable energy funding under the very recent policy changes. The U.S. Department of Agriculture has frozen $11 million meant for Midwest farmers' clean energy projects.
This drop in support affects many farm-based biogas and biomethane ventures, making it harder to start new renewable projects.
The Inflation Reduction Act‘s $369 billion climate package offers some hope for agricultural renewable projects. Still, many farmers struggle to access these funds due to strict rules and limited distribution channels.
Private investors now fill some gaps, yet small-scale farmers need more support to build sustainable energy systems on their land.
Delays in USDA renewable energy programs
The reduced federal funding has led to major delays in vital USDA renewable energy programs. The Environmental Quality Incentives Program (EQIP) faces a complete freeze, creating barriers for farmers who need support for biogas projects.
The Rural Energy for America Program (REAP) struggles with slower processing times and limited staff resources to handle applications.
Many U.S. agricultural producers will now wait longer for approvals on renewable energy installations. The Trump administration's policy shifts have slowed the review process for biomethane projects.
These delays affect small-scale farm operations more than large corporate facilities. The USDA's renewable energy staff must work through a growing backlog of applications with fewer resources.
This situation will leave many farmers unable to start their planned biogas and biomethane projects on schedule.
Implications for methane capture technologies
Methane capture systems face major hurdles under recent policy changes. Farmers who invested in anaerobic digestion units struggle with reduced support for renewable natural gas projects.
Many small-scale biogas operations now lack the funding needed to maintain or upgrade their equipment. This affects critical technologies like gas collection covers, processing units, and pipeline injection systems.
Private companies will step in to fill gaps left by federal programs, but costs remain high for most farmers. Market uncertainty will, we predict, make lenders hesitant to finance new methane capture projects.
This leads us to examine the economic impact these changes have on farming communities.
Economic Consequences for Farmers
Farmers face steep financial losses from reduced biogas project funding under Trump's policies, pushing many to stick with traditional farming methods and higher energy costs – read more about the specific impacts on rural communities.
The removal of tax credits has created major hurdles for small-scale biogas producers. The Investment Tax Credits once helped offset the high costs of installing methane capture systems on farms.
Now, rural energy producers must rely more on private funding or state-level programmes to keep their renewable projects running. The U.S. Environmental Protection Agency's policy changes have made it harder for farmers to profit from sustainable energy production.
The next section examines how higher costs affect renewable energy adoption on farms.
Higher costs for renewable energy adoption
Farmers face steep costs to install biogas and biomethane systems on their land. The U.S. Environmental Protection Agency reports that a basic methane capture system starts at £250,000, with larger installations reaching over £1 million.
These high prices create barriers for small and medium-sized farms that want to switch to renewable energy sources. Many farmers must take out loans with rising interest rates to fund these projects, which adds to their financial strain.
The renewable energy equipment market may soon show signs of price increases due to Trump's economic policies. The strengthened US dollar and impending import duties will make the preponderance of imported equipment from Europe more expensive for American farmers.
The next section explores how private funding could help offset these rising costs for agricultural businesses.
Opportunities Amid Challenges
Private investors show growing interest in biogas projects, creating fresh chances for farmers to fund their renewable energy plans. The U.S. Environmental Protection Agency's recent changes have opened doors for farmers to sell carbon credits from methane capture to big companies. It is hoped that this policy will not also be reversed.
Positioning RNG for corporate buyers and voluntary markets
However, the situation is by no means hopeless. Corporate buyers now see renewable natural gas (RNG) as a vital part of their clean energy plans. Many large companies will still want to cut their carbon footprint through RNG purchases. The U.S. Environmental Protection Agency's Renewable Fuel Standard helps farmers sell their biogas to these businesses.
This creates a steady income stream for farm-based RNG projects and that will continue and still grow, but less rapidly.
Farmers can tap into growing voluntary markets for RNG credits. Major food companies and retailers need renewable energy to meet their climate goals. The Renewable Volume Obligations set clear targets for renewable fuel use.
Smart farmers will continue to partner with RNG developers to build anaerobic digesters. The fact remains that these systems turn farm waste into valuable fuel that corporate America wants to buy.
Many farmers have found success in the Asia-Pacific market, where countries need renewable energy credits to meet their Paris Agreement goals. The trading system works through a simple process: farmers measure their methane capture, get it verified, and sell credits to international buyers.
This system helps farmers earn extra income while reducing greenhouse gas emissions. The U.S. Department of Agriculture supports these trades through special programs that connect American farmers with global markets.
Environmental Implications
The Trump administration's policies will slow down methane emission control efforts across U.S. farms. Recent data shows a sharp rise in greenhouse gas releases from agricultural operations, which puts more strain on our climate goals.
Increased reliance on factory farm systems
Factory farms have gained more ground under recent policy shifts. Large-scale farming operations now process more livestock than ever, with massive indoor facilities housing thousands of animals.
These systems focus on high-volume production through automated feeding, traditional waste management, and strict animal control measures. The U.S. Environmental Protection Agency already reports a marked rise in concentrated animal feeding operations since 2020.
The growth of factory farms has created new challenges for renewable energy goals. Many farmers face pressure to expand their operations rather than invest in biogas projects. The current market favours mass production methods over sustainable practices.
Small-scale farmers struggle to compete with large operations that have better access to resources and capital. This shift affects both traditional farming methods and the potential for on-farm renewable energy development.
Market experts warn that missing current targets could delay clean energy adoption by five to ten years. The Renewable Fuel Standard changes have left many agricultural producers uncertain about future investments.
Possible role of global markets in sustaining US biomethane initiatives
Global biogas markets are unchanged and are creating strong demand for biomethane. This creates strong support for farm-based biomethane projects. European nations show high demand for renewable natural gas from U.S. farms.
Many Asian countries have started buying biomethane credits through international trading systems.
The rising global interest helps U.S. farmers sell their biogas products worldwide. Markets in Europe, Africa, Asia, and South America want more farm-based renewable energy. This demand creates steady income streams for American agricultural businesses, but retaliatory duties imposed to counter new US import duties may even jeopardise this US market.
Recommendations for US Farmers
Advocacy for supportive policy changes
Farmers need strong voices in policy discussions to protect their interests in biogas development. Local agricultural groups must speak up at town halls, write to their representatives, and join forces with renewable energy associations.
The U.S. Department of Agriculture projects $42.4 billion in farm payments for 2025, largely because of supplemental and ad hoc disaster assistance to farmers and ranchers from the American Relief Act of 2025. This shows that the US government's will still have a major role in supporting farmers. This leads us to hope that some of this funding could help expand renewable energy projects if farmers push for a reasonable allocation.
Conclusion
Trump's policies are winding back on the positive results for biogas and biomethane development in the farming sector seen in recent years. The changes will be leaving many farmers searching for new paths forward in renewable energy.
Dr. Sarah Mitchell, Director of Agricultural Sustainability at the Renewable Energy Research Institute, brings 20 years of experience in biogas development and farm energy systems.
She holds a Ph.D. in Agricultural Engineering from Cornell University and has led numerous successful biomethane projects across the Midwest.
“The current landscape presents both obstacles and possibilities for farmers interested in biogas production,”
Dr. Mitchell notes.
“The rollback of federal support will slow progress, but private sector interest remains strong.
Farmers must focus on building partnerships with corporations seeking renewable natural gas credits.”
Dr. Mitchell points to successful case studies where farmers have adapted to policy shifts.
“Many operations have found success through state-level incentives and direct partnerships with energy buyers.
These arrangements often prove more stable than federal programs.”
The expert highlights key considerations for farmers exploring biogas projects:
“Start small, focus on proven technologies, and secure long-term purchase agreements for feedstock and energy outputs before major investments.
The market still offers good returns for well-planned projects.”
Dr. Mitchell remains cautiously optimistic about the sector's future.
“While federal policy creates uncertainty, market forces continue driving demand for renewable natural gas. Farmers who position themselves strategically will find opportunities in this evolving landscape.”
FAQs – Trump’s Impact On Biogas
1. How did Trump's policies affect renewable energy and farmers?
Trump's first presidency marked changes in renewable energy. He pulled the US from the Paris Climate Accord and changed the Renewable Fuel Standard. These moves hit Midwest states' farmers who grow crops for biofuels.
2. What will happen to biomethane projects under Trump?
The Trump administration will not implement rules on the need for carbon capture and storage. This will hurt biogas growth and affect agricultural production in states like South Dakota.
3. Did Trump's actions previously impact food supply and farming?
Yes. Trump’s impact on biogas includes changes to the Clean Water Act and Waters of the United States rules changed how farmers work. The Tax Cuts and Jobs Act brought new rules that affected food-insecure families and SNAP benefits.
4. What role did the previous Trump Congress play in Trump's renewable energy choices?
The House of Representatives and US Senate, including Republicans like Joni Ernst, backed some renewable energy plans. The Congressional Review Act was used to check Trump's power over renewable fuel policies.
5. How did Trump's choices affect global warming efforts in his first term?
Trump withdrew from the Paris Agreement on Climate Change. This affected US plans for carbon removals and bioenergy with carbon capture. It changed how the US met their nationally determined contributions.
