FARMERS considering planting the carbon negative crop miscanthus can now access a finance package covering virtually all of their upfront costs for crop establishment.

Oxbury Bank is working in partnership with miscanthus specialist, Terravesta, to deliver the finance package. The offer to prospective growers also includes long-term offtake agreements with end-users, with 10 to 15-year index-linked annual returns.

Terravesta said the moves were intended to help decarbonise the UK economy, and that if planting of perennial crops such as miscanthus could be accelerated, to at least 30,000 hectares per year by 2035, the increase would sequester two million tonnes of CO2 emissions, rising to over six million tonnes CO2e by 2050.

"One of the main barriers to entry for miscanthus growing is the upfront cost of planting," said managing director of Oxbury Bank, Nick Evans. "Our finance package with Terravesta ensures a quick release of funds to help farmers to grow a sustainable business. The loan structure allows farmers to pay interest only for up to two years while the crop is establishing and then pay back the capital over an extended period of time when the crop is producing an economic return.

“Agriculture is changing, and it’s important that farmers have access to finance and capital for their low carbon initiatives and sustainable growth plans, like miscanthus," he said.

Under the new contract, Terravesta will supply its performance hybrids, planting equipment and agronomy throughout the crop’s life, ensuring successful crop establishment by committing to a minimum number of plants emerging under its new planting promise.

Terravesta’s chief operating officer, Alex Robinson, said: “Our current rhizome-based variety Terravesta Athena delivers higher yields than the commercially available miscanthus giganteus, a calorific value increase of 8%, resulting in 180% increase in energy per hectare (megajoules) and significant ash content reduction, all of which benefits the end-user considerably.

“Terravesta Athena generally takes its first harvest in year two and reaches maturity faster than miscanthus giganteus, and some of our growers are reporting a first harvest of eight tonnes per hectare, going onto a mature yield of between 10 -17 tonnes per hectare depending on the soil type.

“The beauty of this new package is that growers have a direct contract with renewable energy power plants, which enables Terravesta to provide a finance package and allows us to focus on crop establishment in the UK at a much greater scale to support our net zero targets,” added Mr Robinson.