A Future with Clean Farming

Farming has existed since the beginning of time and has evolved into an industry that has a significant global footprint. According to the American Council for an Energy-Efficient Economy, the agricultural sector has the potential to save over $1 billion in energy per year. As the importance of sustainable farming practices has continued to grow, there have been several new developments in energy-efficient equipment that can help farmers unlock the green potential of the agriculture industry.

Agrivoltaics
The roots of modern solar power can be traced back to 1939. Since then, it has played a large part in the alternative energy revolution. Agrivoltaics, the simultaneous use of areas of land for both solar photovoltaic power generation and agriculture, is a new technology that promises to improve food production and reduce water use, while also creating energy and additional revenue. Photovoltaic technology on farms is becoming an increasingly popular and has several benefits. A study from the National Renewable Energy Laboratory found that implementing agrivoltaic systems can improve land use by 70%. The technology is becoming increasingly popular in Europe, where governments are pushing to install more agrivoltaic capacity.

Given that farms often span across many acres and receive unobstructed sunlight, taking advantage of solar energy is simple and accessible. Photovoltaics can power irrigation systems, soil sensors and agricultural robots like drones. In addition, given their height, livestock and large animals benefit from more shade while continuing to be able to openly graze.

Though expensive, this technology can help large farmers achieve cost and energy efficiencies. In Brazil, with Valmont Irrigation, DLL finances solar panels that generate energy used to run the pivots. As noted by Valmont Irrigation, they’ve found that the investment in a clean and renewable solution with long-term returns are undoubtedly already attention-grabbing features. Besides all this, there are factors that contribute to the growth of the photovoltaic solar energy market.

In the last few years, the prices for the installation of solar panels have registered a drop and several payment options have appeared. The value of the investment in a photovoltaic system varies according to the size and model of the project, the supplier, as well as the institution chosen for the financing of the solar energy system. When choosing financing, the return on investment in a photovoltaic system usually occurs between 4 and 6 years. The customer practically substitutes the value of the energy bill for the installment of the photovoltaic system and, at the end of the installments, is free from paying any cost. And with the value of the energy bill between 70% and 95% lower. Valmont Irrigation found that the partnership with DLL was fundamental to business because the expertise of its managers, the agility, and the ability to transmit the knowledge and the necessary security for customers to feel comfortable in closing their purchase.

Renewable Diesel Production
The search for low-carbon fuel feedstocks from renewable sources to meet the demand for green energy has been driven by government mandates, incentives, and standards to lower the carbon intensity of fuel. Renewable diesel feedstock includes used cooking oil, soybean oil and tallow and is almost exclusively used as transportation fuel. A study by the National Library of Medicine, predictions of biodiesel production and consumption found that global biodiesel production is expected to reach 39 billion liters by 2024, corresponding to a 27% increase from 2014. The European Union is the major biodiesel producer. USA, Brazil, Argentina, Indonesia and Thailand along with the EU together produce 85% of all biodiesels worldwide. Substantial growth in biomass-based diesel production is expected, specifically renewable diesel, from 2021-2025 in the US.

Anaerobic Manure Digestion
Anaerobic digestion is a process through which bacteria break down organic matter—such as animal manure, wastewater biosolids, and food wastes—in the absence of oxygen. The capture and use of methane through anaerobic digesters has been known to reduce GHG emissions from dairy cow and hog manure systems. This biogas can be used on the farm or sold back to the grid (electricity or natural gas). Several types of capital-intensive digesters—including complete mix digesters, plug flow digesters, and covered lagoon digesters—are used primarily on large-scale, intensive farms in Europe and North America.

As gas and biomethane prices are expected to rise in the coming years, it stands to make the installation and adoption of digesters more economically attractive. The main reason biomethane continues to become more attractive is due to its potential to displace natural gas.

Electric Tractors
Without large equipment, the tractor market would be unable to operate successfully. According to the U.S. Environmental Protection Agency, in the US alone, tractors burn 5.3 billion gallons of fuel a year which accounts for 10% of the country’s GHG. The largest amount of on-farm emissions abatement potential can be achieved by shifting from traditional fossil-fuel equipment and machinery to their zero-emission counterparts. McKinsey found that this transition could realize huge cost savings of $229 per tCO2e.

Today, the largest challenge for tractor electrification is ensuring there is available battery energy capacity and charging infrastructures. However, over the next three to five years battery prices are expected to decline and with this drop, as well as the greater availability of battery charging stations, it will be increasingly convenient to have battery-electric farming vehicles. Drivers for hybridization, electrification and alternative fuels include system optimization, increasing variance in the fuel mix, best fit applications to suit wide range of usage cases, technology transfer opportunities from automotive.

As these technologies continue to develop, now is the time for farmers to increasingly think more about how they can contribute to global sustainability goals. Energy conservation and electrification opportunities stand to improve output, produce savings, and reduce the environmental impacts in farms of all kinds.

If you have any questions about how financing can support energy efficient farm equipment, or needs of your customers, please contact us, or check out our website for more information.