IN his latest column Rob Meadley, renewable energy consultant at Brown & Co’s Brigg office, reports on the rising interest from farmers in growing energy crops such as miscanthus.
East Yorkshire farmers are still making enquiries about the possibility of growing energy crops for 2012, despite current high cereal prices.
The dry weather this spring has stressed many crops on poorer quality land and will result in no profit made on these areas of land, so farmers are considering alternative options.
Miscanthus offers the chance for farming businesses to take less productive, loss making areas of the farm out of production and grow a crop, which requires very little input and provides a guaranteed income, therefore maximising profit across the whole farm.
Drax Power Ltd has doubled the amount of miscanthus it uses for biomass co-firing compared to harvest 2010 and now has over 100 growers, including 50 in Yorkshire contracted for supplies.
Farmers signed up to a Green Shoots direct supply contract with Drax meet an adviser from Brown & Co, the agricultural business consultants appointed by Drax at the end of 2009.
Rob Meadley, renewable energy consultant at Brown & Co’s Brigg office, guides the farmer through the availability of grant support – miscanthus qualifies for 50% of Natural England funding – and other financial incentives in addition to the sustainability criteria, which must be adhered to as part of Drax’s policy on sourcing renewable energy crops.
Rob said: “We have handled several new enquiries in the last two months and in the last four weeks Drax has signed up four growers that were out of contract with other supply arrangements,”
“Drax has brought stability into the biomass supply market and farmers are gaining in confidence that there is a reliable end-user for their crop, which provides steady income.”
Under the Green Shoots scheme Drax pays farmers directly and has a separate management agreement with Brown & Co.
Rob Wood, biomass buyer at Drax, added: “Our biomass procurement strategy and experience means we understand the process of preparation, planting and harvesting, and recognise the importance of appropriate payment structures.”