USDA Pauses Digester Loan Guarantees

The USDA paused, then extended, federal loan guarantees for manure-based anaerobic digester projects after internal reviews found elevated delinquency, underperformance, and losses.

Subsequent loan transfers removed most of the headline delinquent exposure, but the program remains restricted while USDA reviews underwriting and portfolio risk. The issue sits at the intersection of agricultural finance, renewable natural gas policy, and environmental debate. Supporters frame digesters as methane-reducing clean energy projects, while critics argue they can subsidize concentrated animal feeding operations and deliver weak returns on public funds.