Guaranteed Income
Farmgen is guaranteeing farms and sites that move into AD generation a fixed 10-year income stream – with an agreed level of crop production and land rental over that decade.

Smaller sized farms – of 200 acres or so – can come together with their neighbours to form “energy co-operatives”. That way they can work together to make marginal land pay. Using this approach, it is anticipated that the income of individual farmers could rise on average by £16,000 a year.

The creation of an AD plant can bring a number of other economic benefits.

A digester of 1MW in capacity can provide heat to dry products, enable other crops to be grown under cover and can also heat housing for livestock.

Farm buildings and machinery can benefit from low cost electricity and the project improves security of supply.

There may also be job benefits – during the initial six-month construction stage and afterwards. A plant of this size can create two full time posts – and safeguard other agriculture-related jobs on the farm.

The AD business model provides an income level that is guaranteed against a backdrop of deflation and price volatility that exists across a number of farming sectors.

In Germany alone the AD sector is worth around £500m-a-year in income and it continues to expand. Farmgen believes similar schemes here in the UK could play an important part in helping both farm diversification and the regeneration of rural communities.