Farm Credit Canada will offer a new “energy loan” March 1 that will be available to farmers interested in generating their own on-farm renewable energy.
Agriculture minister Gerry Ritz announced the new program Feb. 22 at the Canadian Federation of Agriculture annual meeting in Ottawa.
“These loans will help farmers produce their own renewable energy, save money, increase their own self-sufficiency and of course, generate additional income,” he said.
Ritz said it was a response to an FCC survey that showed many farmers want to reduce their environmental impact while reducing operating costs.
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In a government statement about the new program, FCC president Greg Stewart said the corporation sees this program as a way to help rural Canada.
“We’re definitely seeing an increase in the number of people across the country that are interested in renewable energy sources to reduce costs and demand on the energy grid.”
He said the FCC 2009 survey of about 1,200 producers showed that 60 percent were looking at “new ways to find financial value by reducing their environmental impact.”
Ritz said the loans would be available to farmers who want to buy and install renewable energy technology ranging from biogas generators and geo-thermal systems to wind or solar power.
At FCC head office in Regina, communications official Shaun Humphries said the loans would be made at commercial rates after the usual assessment of the farmer business plan and financial situation. It is a loan with a term up to five years and producers can choose variable or fixed rates with various repayment options open.
He said the FCC has not set a limit on the amount of money available for energy loans.
“It’s pretty open-ended, depending on demand,” he said.
“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.”
