Did you know Aussie farmers can now access $300 million in discounted finance loans for going green? If investing in sustainable tech for your agri-business, you might qualify for up to 1.15% off your loan rate—thanks to a new government-backed initiative launched in January by the Clean Energy Finance Corporation (CEFC). Potentially dropping your interest costs per loan by more than $57,000 annually. Potential loans range between $1m and $5m, which can go towards reducing your on-farm carbon footprint.
Ruminant livestock like cattle, goats, and sheep produce large amounts of methane as part of their digestion. Methane has a global warming effect 28 times that of CO2, meaning methane from livestock makes up around 10% of national greenhouse gas emissions. Plus, methane production consumes up to 15% of the energy from a cow’s feed – meaning lost efficiency.
A few of our feed lot clients have been looking into supplementing their cattle feed with a seaweed-based feed additive, Asparagopsis. Latest study results from Sea forest, one of the first organisations to cultivate Asparagopsis at a commercial scale, show animals whose diet is supplemented with Asparagopsis have shown methane reductions of around 60%. There is also indication that it increases livestock productivity through the metabolic conversion of methane. The Asparagopsis seaweed produces a bioactive compound called bromoform, which prevents the formation of methane during the animal’s digestion of feed. The CSIRO has projected, if just 10% of ruminant livestock producers adopted seaweed additives to their livestock feed, it would have the same impact for our climate as removing 100 million cars from the world’s roads. Also, the potential jump in livestock productivity could create enough food to feed an additional 23 million people.
Seaweed additives can be a direct and legitimate way to cut back on emissions. In doing so, it can make your agribusiness eligible for carbon credits, opening another income stream for your farm. It could even create the opportunity to market one’s product as net zero/environmentally conscious.
You have the potential to have lower emissions while boosting your revenue. We see that as a good investment opportunity.
Although investing into this feed additive technology can be a significant outlay in the short term, having access to reduced interest rate green loans backed by the government creates more incentive for farmers to invest into greener futures. The Clean Energy Finance Corporation (CEFC) loans and environmental technology is keeping Australian farms on the forefront of our sustainable transition by cutting back on financing costs and boosting ROI for environmentally beneficially projects.
Boyce is here to help break down barriers to accessing sustainable technology and “green finance.” We can help get you through the CEFC funding criteria and application process. We can also assess investment opportunities to get you the best return while meeting sustainability goals.
