Propane Farm Incentive Programs

Kelly Stenka, CVA Energy Advisor

Feb 26, 2024

CVA Propane

We are all learning that propane is an environmentally friendly source of energy, and wouldn’t it be great if we could use it as an alternative source of fuel for agriculture? With the EPA coming out with the Clean Air Act, propane was approved as an alternate source of fuel. Propane is a great way to reduce emissions while meeting the needs of our agricultural communities! Propane is efficient, affordable, and cleaner than other fossil fuels such as diesel and gasoline by producing less greenhouse gas emissions. Propane equipment is built for greater efficiency, because it is not affected by interruptions to the power grid, it’s ready when you are.

Propane powered irrigation engines have the latest in technological features. They provide up to 300 horsepower of continuous power, and typically cost 20-40 percent less than their diesel counterparts, and engine maintenance costs are less than the diesel engines. Another propane equipment product that is very popular right now is propane powered generators. When the power grid does go out you still have power to operate, which is very nice after a storm, or something has knocked out your power. Propane-Powered Weed Control is relatively new, it is used by farmers who grow organic crops that can’t use herbicides to control weeds. It works by using intense heat to rupture plant cells, causing the weeds to die. The nice thing is that it can be used in a variety of weather conditions and plant stages, it also lets the farmer return to the field immediately after a treatment.

            Now you are probably wondering why I’m telling you all about this. Did you know that there are incentive programs to help you make the change to propane? The Propane Education & Research Council (PERC) provides research, product development, and consumer education on agricultural operations. The Propane Farm Incentive Program is a research project to gain feedback on the performance of select propane-powered equipment in the field. Participating agricultural operations receive a financial incentive towards the purchase of qualifying equipment in exchange for monitoring the performance and sharing experiences with PERC.

Qualifying equipment includes Propane-Powered Industrial Engines, Propane-Powered Generators, Propane-Powered Water Heating Systems, Propane-Powered Poultry, Swine & Greenhouse Heating Systems, and Propane-Powered Flame Weed Control.

Here are some of the incentive details on the qualifying equipment:

  • Agricultural can earn up to $5000 per unit under the Farm Incentive Program
  • Nebraska Propane Gas Association will contribute an additional $750 on select programs.
  • The incentive total per unit cannot exceed 25% of total equipment cost.
  • No more than two equipment units from each of the categories below can be submitted in a single year.
  • Qualifying equipment and participating dealers are subject to change at any point.

Qualifying equipment is as follows:

Propane-Powered Industrial Engines

  • New, EPA and/or CARB-certified industrial engines used for agricultural purposes, typically in pumping applications, can qualify for incentives of $300/liter of displacement, up to $5000.
  • Additionally, EPA or CARB-certified dual fuel systems can qualify for an incentive up to $3000.

Propane-Powered Generators

New, EPA and/or CARB-certified generators are eligible for incentives when used for agricultural purposes.

  • Prime power generators can qualify for incentives of $30/kW
  • Backup generators can qualify for incentives of $15/kW

Propane-Powered Water Heating Systems

  • New, high-efficiency water heating systems used in agricultural production operations are eligible for an incentive of $2000. The system must either be installed in new construction or as a conversion from another power source.

Propane-Powered Poultry, Swine, & Greenhouse Heating System

  • New heating systems are eligible for an incentive of $0.10/ square foot, up to $2000 maximum per system, when installed as a part of an entire system installation. The complete system must either be installed in new construction or as a conversion from another power source.

Propane-Powered Flame Weed Control

  • New tractor pulled flame weed control systems are eligible for an incentive of $1500.
  • New push type flame weed control carts are eligible for an incentive of $100.

As you can see there are some options to help you make the switch to clean burning propane. It’s efficient, affordable and environmentally friendly! If you want more information, you can give Central Valley Ag a call or go to

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