By unlocking the export potential China offers the pig industry, not to mention the red meat sector as a whole, we could gain entry into a marketplace which comprises a fifth of the world’s population.Defra offers farmers £20k interest-free loans to go green
DEFRA is offering British farmers unsecured, interest-free loans of up to £20,000 to invest in energy efficient equipment.
From February 2010 farmers will have access to the loans, provided through the Carbon Trust, to invest in green technology which will slash energy bills by £4 million and save 25,000 tonnes of carbon every year.
The loans are designed to pay for themselves within four years through direct energy savings, Hilary Benn, Environment Secretary, announced on a farm in Surrey today (Monday, December 21).
Mr Benn said: “It makes sense for farmers to reduce the energy they use. It reduces the cost of producing food, and it cuts the environmental impact, too – something more and more consumers are asking about. But the up-front costs can be prohibitive.
“These interest-free loans will help farmers to upgrade their equipment to become more energy efficient – saving money in the long run, as well as helping the agricultural sector to cut emissions right at the start of the food chain.”
The loans, which will be between £3,000 and £20,000, are part of the Carbon Trust’s Big Business Refit – a nationwide campaign encouraging businesses to replace old, energy intensive equipment.
Tom Delay, chief executive, the Carbon Trust, said:
“Upgrading old equipment using our loans scheme is an excellent way for farmers to be more competitive in difficult times, by cutting their costs and reducing carbon emissions.
“By reducing costs and associated carbon emissions in this way, goods will also be more appealing to the rising tide of carbon conscious shoppers.”
In total the Carbon Trust has about £12 million to offer in loans, thought to be enough for about 1,000 farmers.
The loans will be available on a first come, first served basis and
Mike Giffin, farm manager on Charrington Farms in Surrey, said he would be at the front of the queue.
“If we can be more efficient with out inputs then we will be much better off financially.
“I will perhaps look to get a loan to buy a mobile grain dryer so we are more energy efficient.
“As a cereal producer profitability can be marginal so a £5 saving per tonne could be the difference between making money or not,” he said.
Examples of energy efficiency upgrades which the Carbon Trust loans will fund are:
- Thermal screens, used in greenhouse horticulture, typically cost up to £20,000, and can save over £10,000 / 100 tonnes of CO2 annually.
- Milk cooling accounts for one third of the energy consumption of dairy farms. New systems cost £3,000, and save up to £1,000 / 6 tonnes of CO2 a year.
- Insulation used in field horticulture crop stores, typically costs around £17,000, and saves up to £10,000 / 50 tonnes of CO2 a year.
- Upgrading heating and ventilation controls, in livestock farms, typically costs £3,000, and saves over £4,000 / 23 tonnes of CO2 a year.
- Grain drying humidity controls, used in arable farming, typically costs £3,000, and saves around £1,500 / 10 tonnes of CO2 a year.
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Readers' comments (4)
Alena | 22 December 2009 9:23 am
I recently came accross your blog and have been reading along. I thought I would leave my first comment. I dont know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.
Alena
http://grantsforeducation.info
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Janet Simpson | 22 December 2009 1:01 pm
Appears good. Are loans dependent upon being repaid in four years or only available up to the equivalent of the saving achieved in four years? Oh well, get in the queue and find out.
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william bradley | 22 December 2009 5:31 pm
Will this apply retrospectively? I have just completed conversion of fan ventilated buildings to natural ventilation, having spent some time looking for grants or aid to do it! It seems ludicrous to me to offer big grants to erect windmills to generate electricity when we should be finding ways of not using it in the first place. Lack of joined up thinking, surprise!
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Phil Robinson | 5 January 2010 4:34 pm
We have recently installed a new cooling system in our parlour and are paying for it with added interest. Can we apply for this loan retrospectively?
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