The National Farmers’ Union (NFU) has given a mixed response to the government’s announcement on Feed-in Tariffs (FITs) or its ‘Clean Energy Cashback’ scheme, which it says doesn’t go far enough to attract farmers and growers.

The FITs, which are to be introduced from 1 April, will provide government-backed support for small- to medium-scale renewable electricity generation. Modelled on similar schemes across Europe, FITs are being introduced in response to lobbying by a coalition of diverse stakeholders, including the NFU, which sees opportunities for UK farmers and growers to export renewable energy services alongside food production.

However, the British scheme has already been criticised as lacking in ambition compared with its continental counterparts, as it is expected to account for only two per cent of UK electricity production by 2020. The overall rate of return to developers has also been set at around five to eight per cent which the NFU says is attractive to householders, but doesn’t go far enough to attract many commercial investors such as farmers and growers.

NFU chief renewable energy adviser Dr Jonathan Scurlock said: “The proposed tariffs for anaerobic digestion (AD) have been dismissed as inadequate by many in the biogas sector, which had lobbied for a range of scaled tariffs similar to those on offer for small to medium wind power. Surprisingly, other forms of biomass power generation have been left out of the FIT scheme altogether, in yet another blow to the bioenergy industry.

“Farmers are willing and ready to contribute to the low-carbon energy revolution but we are deeply disappointed at this missed opportunity to encourage smaller-scale biogas production on farms. The multiple environmental benefits of thousands of on-farm AD plants will only be rolled out if smaller farm businesses can afford them. The government seems to have ignored the advice of its own AD Task Group, and now risks upsetting next month’s AD Implementation Plan by discouraging investment from the agricultural sector.”

The NFU also expressed concerns that solar electricity remains relatively expensive, and few farmers have access to falling streams for hydro power. Many agricultural applicants to the Feed-in Tariff will be left with only one technology choice - wind power, according to the union.