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Future-proofing Your Farm Today for Tomorrow's Generation

The margins you make for food production are tighter than ever. Creating energy from your waste can
provide future security

Todays farmers are under pressure. Confidence is low and a recent survey by the NFU found that the proportion
of farmers predicting they will be negatively affected by falling output prices in the next 12 months has more than
doubled from 27% in 2013 to 56% in 2014. Over half said input prices will also have a negative impact on their
business.
According to NFU president, Meurig Raymond: This year has seen farmgate prices falling across various
commodity sectors arable, dairy, livestock and mixed and increased volatility has clearly impacted on our
members confidence.

Dairy woes
The plight of dairy farmers is just one area that has been well publicised. In the past decade half of Britains dairy
farms have closed and milk prices in the UK today are at their lowest level since 2007.
With input costs rising and output costs falling, its no surprise that confidence to invest on-farm is low.
Or is it?

On-farm anaerobic digestion

One area attracting a lot of interest right now is renewable energy as dairy farmers, in particular, look at how they
can make their farm businesses viable in the long term. These farmers may have no control over market prices,
but they do have one by-product on their side: slurry. Imagine if that could be turned into something much more
valuable ...
One process that does just that is anaerobic digestion. The beauty of it is that, mixed with energy crops such as
maize or grass silage, the slurry provides a perfect feedstock for an on-farm anaerobic digestion plant. The result
is a methane-rich biogas and a nutrient-rich biofertiliser (called digestate). The former can be used to generate
both heat and electricity, whilst the latter can be spread onto land.

Economic wins
For a farm, this process yields a number of commercial wins. The waste disposal costs of slurry are reduced. The
energy input costs are cut and stabilised. And the fertiliser bills are slashed.
But theres more. The generation of renewable energy on the farm also attracts subsidies through the Feed-in
Tariff and the non-domestic Renewable Heat Incentive. The helps bring the return on the initial capital investment
down to about five to seven years.
The security and additional income of an on-farm anaerobic digestion plant are certainly eye-catching. As one
recently-converted farmer says: Like any dairy farmer, I have my fingers crossed for milk prices going forward,
but at least with the anaerobic digestion unit, we know the futures secure.

Environmental wins
Economically, on-farm anaerobic digestion is a big investment today, but can provide security and ensure the
business is viable for the next generation.
The environmental benefits can also leave the farm prepared for the future. Farmers are under pressure to
produce more food, using fewer inputs. There is also pressure to reduce the carbon footprint of their farms. And
its unlikely that the regulations to cut carbon emissions and reduce the environmental impacts of food production
will be loosened any time soon.
Greenhouse gas emissions from livestock farms are high, not least because of the methane produced. But onfarm anaerobic digestion enables this methane to be captured and turned into renewable energy. This not only
means fossil fuels are replaced, but less methane is emitted into the atmosphere. Plus, with the digestate also
reducing the requirement for fertilisers, the overall savings can be significant.

Climate-smart future
Its not easy making ends meet in a farm business these days and, thanks to rising input costs, falling output
prices and stiff environmental regulation, it isnt going to get easier.
But with pressure comes inspiration, and increasing numbers of farmers are looking at how they can diversify
their business to make it viable for the next generation.
Generating renewable energy from waste is one way to reduce costs and protect the farm for the future.

Takeaways:

Takeaways:
Things to think about:
Get to grips with the viability of your farm in the long term
Reduce your slurry disposal costs, cut your fertiliser bills and stabilise your energy input costs
Meet regulations and legislation, both now and in the future, to reduce the carbon footprint of your farm
and reduce the environmental impact of food production
Consider investing in on-farm anaerobic digestion

To find out more about how you can future-proof your farm, download our free
eGuide: The Essential Farmers Guide to the Financial Benefits of Waste Energy