Getting to grips with the ‘energy injustice’ faced by farming businesses is one of the key challenges currently faced by the rural economy, experts have warned.
Restrictions impacting those farmers who are seeking to invest in renewable energy in agriculture, such as planning restrictions and a lack of grid capacity, should be removed.
This is according to a panel of experts brought together by the Farmers’ Union of Wales (FUW), as the Welsh government seeks to reach zero carbon emissions by 2050.
Experts were brought together to discuss how on-farm renewable energy projects can help towards meeting future targets, without undermining food production. Renewable energy in agriculture has previously proved and has the potential to prove to be an economically viable investment for farmers.
However, following the removal of feed-in energy production tariffs in 2019, on-farm investment into renewable energy has slowed down significantly.
In addition, farms who may have wished to invest in hydropower projects have been disincentivised after the business rates relief scheme for such projects came to an end in 2021 resulting in a ten-fold increase in rates costs.
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