Beginning March 1, Canadian farmers can borrow money to cover the cost of buying and installing equipment to allow on-farm generation of renewable energy.The Farm Credit Canada special program will cover technologies ranging from bio-digesters and geo-thermal to wind and solar power.FCC communications official Shaun Humphries said the loan program will tap into an initial allocation of $25 million but more money can be allocated if demand exceeds that amount.“It’s pretty open-ended depending on demand,” he said Feb. 22. “We have initially set aside $25 million but if there is a stronger demand, this is not a ceiling. The amount of money available could be adjusted.”Federal agriculture minister Gerry Ritz announced the new “energy loan” program at the Canadian Federation of Agriculture annual meeting in Ottawa Feb. 22.He said the loans will be a way to help farmers reduce their greenhouse gas emissions, cut fuel costs and make some money.FCC president Greg Stewart said the new program responds to a corporation survey of about 1,200 farmers that showed 60 percent were exploring “new ways to find financial value by reducing their environmental impact.”The loans will be available in up to five-year terms with variable or fixed interest rates and repayment arrangements that range from monthly to quarterly, semi-annually or annually.Ritz said that the loan program “is good for the environment and it’s good for the bottom line on farms across Canada.”
New farm loan focuses on alternative energy projects
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