The Agricultural Cooperative Energy Savings Act of 2025 would expand eligibility for certain USDA programs to include agricultural cooperatives with fewer than 2,500 employees. It does this by amending existing law to insert a new qualifier into the statute, thereby broadening the set of entities that may participate in USDA-supported programs.
The bill is framed around enlarging access for smaller co-ops to energy-saving initiatives tied to USDA programs, without adding new programmatic requirements beyond the eligibility expansion.
At a Glance
What It Does
It amends Section 9007(c)(1)(A)(i) of the Farm Security and Rural Investment Act of 2002 by inserting ", agricultural cooperatives with less than 2,500 employees," before "and rural," effectively broadening eligibility for selected USDA programs.
Who It Affects
Directly affected are agricultural cooperatives with under 2,500 employees and the USDA programs that use the eligibility window in 7 U.S.C. 8107(c)(1)(A)(i). Indirectly, member-cooperatives and rural communities that rely on cooperative energy-saving projects may see participation increased.
Why It Matters
Expanding eligibility can broaden access to federal energy-saving and rural development resources for small co-ops, potentially improving efficiency and resilience in rural agricultural supply chains. The change signals a more inclusive definition of who can access USDA-supported programs.
More articles like this one.
A weekly email with all the latest developments on this topic.
What This Bill Actually Does
The bill makes a targeted change to federal law to help smaller agricultural cooperatives participate in USDA programs. By inserting a new eligibility clause into the Farm Security and Rural Investment Act of 2002, it allows cooperatives with fewer than 2,500 employees to qualify for programs that were previously limited to larger entities.
The practical effect is a broader pool of applicants for energy-saving and rural development opportunities offered through USDA, with the expectation of enhanced energy efficiency and cost savings for participating cooperatives and their members. The text provided does not introduce new funding, performance metrics, or compliance requirements beyond the eligibility expansion, so implementation hinges on how USDA programs absorb the expanded participant base.
The Five Things You Need to Know
The bill expands eligibility for USDA programs to agricultural cooperatives with fewer than 2,500 employees.
It amends Section 9007(c)(1)(A)(i) of the Farm Security and Rural Investment Act of 2002 to insert the new cooperative qualifier.
The short title is the Agricultural Cooperative Energy Savings Act of 2025.
There is no funding, reporting, or implementation detail specified in the text provided beyond the eligibility expansion.
The change applies to certain USDA programs as defined by the underlying statute.
Section-by-Section Breakdown
Every bill we cover gets an analysis of its key sections.
Short Title
Establishes the official name of the act as the Agricultural Cooperative Energy Savings Act of 2025. This section sets the frame for referencing the measure in subsequent law and program guidance.
Expansion of Eligibility for USDA Programs to Include Agricultural Cooperatives with Fewer than 2,500 Employees
The core provision inserts the phrase ", agricultural cooperatives with less than 2,500 employees," before the phrase "and rural" in Section 9007(c)(1)(A)(i) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8107(c)(1)(A)(i)). This consolidates the eligibility expansion by naming smaller cooperatives as qualifying entities for certain USDA programs, thereby broadening access to energy-saving and rural development resources without altering other program criteria.
This bill is one of many.
Codify tracks hundreds of bills on Agriculture across all five countries.
Explore Agriculture in Codify Search →Who Benefits and Who Bears the Cost
Every bill creates winners and losers. Here's who stands to gain and who bears the cost.
Who Benefits
- Small agricultural cooperatives with under 2,500 employees gain access to USDA programs they were previously ineligible for, potentially unlocking energy-saving funding and technical assistance.
- Members of those cooperatives may benefit from lower energy costs and improved efficiency resulting from USDA-supported energy programs.
- USDA Rural Development program administrators gain a clearer statutory basis to enroll and manage a broader set of cooperatives, potentially expanding program impact in rural areas.
- Rural communities served by eligible cooperatives may experience enhanced energy reliability and efficiency due to increased participation in federal programs.
Who Bears the Cost
- USDA program offices may incur minor administrative costs to update eligibility processing, guidance, and outreach for the expanded applicant pool.
- Small cooperatives may incur administrative and compliance costs to document eligibility and navigate new program access requirements.
- Lenders and service providers supporting cooperatives could face additional due diligence and onboarding tasks as more entities become eligible for USDA programs.
Key Issues
The Core Tension
Balancing broader access for small cooperatives against the potential for higher administrative burden and demand on limited USDA funding resources.
Expanding eligibility to include smaller cooperatives could increase demand on USDA programs, which may raise questions about budgetary resources and program capacity if funding is not simultaneously adjusted. There is also a need for clear guidance on how eligibility is verified across programs and how quickly expanded access can translate into actual participation and energy savings.
Without explicit funding or performance metrics in the text, the practical impact depends on USDA’s implementation and oversight. A key implementation question is whether all relevant programs will apply the same eligibility threshold or whether program-specific rules will require additional tailoring.
Try it yourself.
Ask a question in plain English, or pick a topic below. Results in seconds.