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Farmers to get up to £400,000 in AD loans

WRAP has rolled out the second phase of a £3m initiative to help farmers set up small-scale anaerobic digestion (AD) plants.

Farmers in England can now apply for a loan up to £400,000 per farm to build AD facilities.

The loans will be funded by Defra and managed by WRAP and are for AD plants generating less than 250kW of energy by using farm waste such as manures and slurries.

The loans follow on from the first stage of the initiative, launched last October, offering grants of up to £10,000 per farm.

The fund is designed to support farmers who are finding it difficult to get finance from the usual commercial sources.

The loans are available to farmers who have not been awarded a grant. A business plan must be completed.

The loan fund will provide between £50,000 to £400,000, or 50% of the capital, and farmers must match the value of the loan with other finance. Loans are over up to seven years with various repayment options. Interest rates range from 3% to 12% depending on risk and project details.

Loans will not affect eligibility for other incentive schemes such as Feed-In Tariffs.

Wrap chief executive Liz Goodwin said: “Having a small scale facility on site will help farmers to improve their manure and slurry management and environmental controls, reduce greenhouse gas emissions and improve energy security.

“There are additional benefits from this approach as the digestion process makes the nutrients in farm wastes more readily available for crop uptake.”

More details on how to apply are here.


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