05/26/2026
The federal government has extended its pause on loans for manure digesters, the method of converting animal manure from large-scale feeding operations into biogas. USDA cited high delinquency rates and financial losses.
But the deeper question is are digesters actually a climate solution or an expensive subsidy that's making factory farming worse?
The industry says digesters can cut manure methane emissions by up to 80%. California has spent nearly $300 million promoting them and points to real emissions reductions. However, critics aren't buying it.
Andrew deCoriolis, executive director of Farm Forward, told Inside Climate News that the evidence increasingly shows digesters are driving factory farm expansion, not reining it in and that in most cases, the gas itself isn't economically viable without public subsidies and carbon credits backing it up.
A new Stanford study backs this up, finding digester incentives are spurring large farms to get even bigger. In Iowa, after a law lifted animal caps at farms with digesters, animal numbers at permitted sites jumped 23%.
And the communities living nearest to these operations (often communities of color) report ammonia pollution, water contamination, and serious health effects. One North Carolina digester breached in 2022, dumping 10,000 gallons of waste into a swamp. The company later went into foreclosure.
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Anaerobic digester loans showed “significant delinquency rates,” the U.S. Department of Agriculture said, while environmental groups see the technology driving an expansion of large-scale animal farming operations.