The first stage of the On Farm AD Fund launched in October 2013, offers grants of up to £10,000 per farm to help farmers develop business plans. This second stage is a loan, funded by Defra and managed by WRAP, which aims to support the construction of on-farm AD plants generating less than 250kW of energy, and which will utilise farm residues like manures and slurries.
“Having participated in the design and approving the terms of this scheme, the NFU is delighted that WRAP are offering further support to reduce the business risk of small-scale on-farm AD and bring forward more projects,” said Dr Jonathan Scurlock, NFU chief adviser on renewable energy.
Facts about stage 2 of the On Farm AD Loan Fund
- Lending amounts: £50,000 to £400,000
- Farmers must match the value of the loan with finance from other sources
- Interest rates for the loan vary between 3%-12% depending on the risk and individual details of the project
- Loan tenures offered up to seven years - there are different repayment options
- The loan will be made available on a commercial basis, therefore no conflict with eligability to claim from incentive schemes such as FiTs
- It's not necessary to have been awarded an On Farm AD grant prior to applying for the loan - but a business plan must have been completed
“The NFU understands that WRAP is already in the process of offering at least 18 business development grants of up to £10,000, which will stimulate the deployment of this key technology to deliver multiple benefits for farmers and growers. An enthusiastic response has been reported to both the grants and the loan scheme in terms of expressions of interest and downloaded application forms.”
For more details visit the WRAP website