The Carbon Trust is to extend its interest-free business loan scheme to the farming community, in an attempt to encourage the agricultural sector to invest in more energy efficient equipment.
The government-backed company announced that from February 1 next year, British farmers will be eligible for unsecured, interest-free loans of between £3,000 and £20,000.
The Carbon Trust said the loans will pay for themselves through direct energy savings over four years.
It predicted that the loans will primarily be used to fund the purchase of equipment, such as thermal screens for greenhouses, new milk cooling systems, insulation for crop stores, upgraded heating systems and grain drying humidity controls.
The loans will only be available to smaller operations, i.e. companies with fewer than 250 employees or which do not qualify for the Carbon Reduction Commitment.
"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," said Carbon Trust chief executive Tom Delay.
"By reducing costs and associated carbon emissions in this way, goods will also be more appealing to the rising tide of carbon conscious shoppers."
The government estimates the deal will slash energy bills across the agricultural sector by a total of £4m, and reduce emissions by 25,000 tonnes a year.
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