A $300 million commitment made by the Clean Energy Finance Corporation (CEFC) will help enable farmers across Australia to receive discounted loans for the purchase of low-emission vehicles.
The program has been tailored to support the purchase of electric, plug-in hybrid and hydrogen trucks, utes, heavy equipment and other vehicles.
Discounts on interest rates of up to 1.15 per cent will be available for eligible borrowers under the new green asset finance program.
With loans expected to range between $1 million and $5 million, farmers could save over $57,000 a year in borrowing costs when they invest in technologies and practices that will deliver environmental and financial benefits.
Minister for Climate Change and Energy Chris Bowen says the program hopes to improve the viability of investment in lower-emission vehicles without compromising financial viability.
“Reducing emissions and making a profit are not mutually exclusive,” Bowen says.
“Increasingly, we’re seeing international supply chains demanding cleaner, greener products and practices, with buyers either paying a premium for green goods or penalising higher emissions products.
“We want Australian farmers, businesses and manufacturers to be as competitive as possible in global markets and be supported to get there as cheaply and efficiently as possible.”
Farmers will be able to opt to keep the saving, have it reinvested in on-farm practices, or undertaking changed land-use practices.
Minister for Agriculture, Fisheries and Forestry Julie Collins says the program will help build on the industry’s forward-thinking approach to sustainability.
“Australian agriculture has a reputation internationally for high standards of environmental sustainability,” Collins says.
“It’s a track record we can be proud of, but we can’t rest on our laurels.
“Australian agriculture has a wonderful story to tell, and these loans are another tool our farmers can access to keep building sustainability into their businesses.”
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