Loans of up to £400,000 available for on-farm anaerobic digestion

From today (Tuesday) farmers in England can apply for loans of between £50,000 and £400,000 to fund the construction of on-farm anaerobic digestion (AD) projects generating less than 250kW.

The On-farm Anaerobic Digestion Loan Fund is part of a £3m initiative funded by DEFRA and is designed to support farmers who have had difficulties accessing finance.

See also: Farmers showing strong interest in AD grants

To qualify, farmers will need to match fund up to 50% of their loan, present a good business plan, and plan to use farm waste such as manure and slurry in their AD plant.

Loans will be offered over seven years with a variety of payment options. Interest rates will vary between 3–12%, depending on the individual farm and project. The loan will not conflict with eligibility to claim under schemes such as FiTs.

The loans follow on from the On Farm AD Fund launched in October last year, which supports farmers to develop business plans for AD plants, with grants of up to £10,000. Nearly 400 enquiries have already been received by Waste and Resources Action Programme (WRAP), which is administering the fund. The fund is still open.

For more information on both the grants and loans, call 01295 817 879 or go to 


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