FARMERS can now apply for interest-free loans of up to pounds 20,000 from the Carbon Trust to buy energy efficient equipment.

The Defra scheme, launched on Monday as part of the Carbon Trust's Big Business Refit, will provide around 1,000 farmers in England with the opportunity to upgrade old equipment or purchase renewable energy technologies.

Defra says the loan scheme will slash on-farm energy bills by pounds 4 million and save 25,000 tonnes of carbon annually.

Jim Fitzpatrick, Farming Minister, said: "It makes sense for farmers to reduce the energy they use - it saves them money, it reduces the cost of producing food, and it cuts the environment impact too."

The total money available in the scheme is pounds 12 million, and individual loans will be available on a first come/first served basis.

At the moment the loan scheme is only available in England, but the Carbon Trust says if it proves successful, then it is likely it will be extended across the rest of the UK at a later date.

A spokesman for the Scottish Parliament said under Rural Development Contracts - Rural Priorities farmers can currently apply for grants of up to 50 per cent towards the cost of modernisation, restructuring, installation of renewable energy generation or other capital investments.

For more information on the interest-free loans please visit: www.carbontrust.co.uk/loans or call 01865 885 846.

(c) 2010 Farmers Guardian. Provided by ProQuest LLC. All rights Reserved.

A service of YellowBrix, Inc.