FARMERS for Climate Action (FCA) has warmly welcomed news that low-emissions heavy equipment, trucks and utes will be eligible for low-interest loans under a new scheme supported by the Federal Government.
The Emissions Reduction Incentive Program for farmers will offer loans at 1.15 per cent less than market rates through NAB’s arrangement with the Government-owned Clean Energy Finance Corporation. Hybrid, electric and hydrogen powered trucks, utes and machinery, will be eligible.
Some $300 million is available under the program, with loans expected to largely be in the amount of $1 million to $5 million.
This means farmers could save in the order of $50,000 a year on interest costs.
FCA chief executive Natalie Collard said “it is fantastic to see the government using the carrot rather than the stick with farmers on emissions reduction”.
“This is exactly the sort of program our 8400 farmer members have been calling for,” she said.
“Farmers want to know how to reduce emissions while remaining profitable, and this program gives them a way to do that, if they choose.
“That’s how you keep farmers farming – credit where credit is due.
“Farmers know why we need to reduce emissions – this year’s bushfires remind us that climate change is hurting farmers now.
“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.”
