A new government initiative will allow farmers to receive interest rate discounts when buying zero and low emissions trucks, along with on-farm products
The federal government has announced that farmers, agri-businesses and equipment purchasers are now eligible for discounted loans for buying emissions reducing technology such as low emissions machinery.
Courtesy of a $300 million commitment from the Clean Energy Finance Corporation (CEFC) that is supported by the government, farmers can receive discounts on interest rates of up to 1.15 per cent through NAB under the new green asset finance investment program.
The program is designed to support people buying electric, plug-in hybrid and hydrogen trucks, heavy equipment and vehicles, along with on-farm activities such as enhanced fertilisers.
Loans from the program are set to range between $1 million and $5 million, allowing farmers to save more than $57,000 a year in borrowing costs.
“Reducing emissions and making a profit are not mutually exclusive. Increasingly, we’re seeing international supply chains demanding cleaner, greener products and practices, with buyers either paying a premium for green goods, or penalising higher emissions products,” federal climate change and energy minister Chris Bowen says.
“We want Australian farmers, business and manufacturers to be as competitive as possible in global markets and be supported to get there as cheaply and efficiently as possible.”
Part of the investment is specifically designed for agribusiness, with the interest rate discount available for the likes of enhanced fertilisers, methane inhibitors and changed land-use methodologies.
Federal agriculture minister Julie Collins says it will help the nation maintain its reputation for sustainability.
“Australian agriculture has a reputation internationally for high standards of environmental sustainability,” she says.
“It’s a track record we can be proud of, but we can’t rest on our laurels. Working together will help everyone continue to do better.
“There is no one way to reduce emissions on a farm, but these loans mean our farmers can access the capital they need to make changes that are good for their businesses.”
The news has also been welcomed to Farmers for Climate Action, with CEO Natalie Collard saying this is exactly the type of scheme its members have been calling for.
“Farmers want to know how to reduce emissions whilst remaining profitable, and this program gives them a way to do that, if they choose. That’s how you keep farmers farming,” she says.
“We warmly welcome this scheme because it gives farmers choice. If a farmer wants to choose a hydrogen, hybrid or electric powered machinery, the farmer can choose to take a low-interest loan to get it. As the technology proves itself, other farmers can also choose low-emissions machinery if they wish.
“Australia’s farmers have a tradition of clean, green farming, and we want to continue that tradition so our kids can farm forever.”
Farmers can choose to either keep the saving or have it reinvested in on-farm practices.