3 reasons why Miscanthus is more affordable and profitable | Terravesta

3 reasons why Miscanthus is more affordable and profitable

21st November 2023

As well as offering long-term, consistent income, and environmental benefits on less productive land, Miscanthus is now more affordable and profitable, thanks to new Sustainable Farming Incentive (SFI) payments…

3 reasons why Miscanthus is more affordable and profitable:

  1. Payment before the first harvest – SFI payments of up to £2645 per year on a 10-hectare Miscanthus crop can be claimed on land classified as a non-horticultural permanent crop.
  2. Quicker ROI – The net result of the income from Miscanthus with SFI payments means the break-even point is two years earlier.
  3. Higher average net return – The average net return for a 10-hectare crop is £930/ha, and this return is retail price indexed, so it goes up consistently each year.

View our Miscanthus SFI Factsheet for more information.

Terravesta offers growers long-term contracts to grow and sell the crop, which has an average lifespan of 15 years.

Miscanthus thrives on flood prone land, it can help to stabilise flooded soils and receives no cultivation post-plating. The crop requires no fertiliser, and while some weed control is advised during establishment, after the crop is established in year two, it requires minimal to no inputs.

“Growing Miscanthus on less productive land offers farmers a financial return as well as delivering environmental benefits such as carbon sequestration, increased soil heath and stability, and can withstand flooding,” explains Mark Coleman, Terravesta account manager.

The government’s Biomass Strategy launched earlier this year advocates for 17,000 hectares of energy crops planted per year from 2038, or 9,000 hectares per year from 2038 in the ‘restricted supply’ scenario.

“As well as increased government support for Miscanthus, the first independent, peer-reviewed study into the Miscanthus life cycles shows that the above ground biomass grows annually and recycles all the carbon that’s been produced through planting, harvesting and burning the crop for renewable electricity, and at the same time, the underground rhizome and decaying leaf litter fixes and stores net 0.64 tonnes of carbon (2.35 tonnes CO2e) per hectare, each year as it grows,” says Mark.

Farmers considering planting Miscanthus can benefit from a finance package with Oxbury Bank, to cover virtually all upfront costs for crop establishment, as well as direct, long-term offtake agreements with end-users, with 10–15-year index-linked annual returns.

“There is also increased demand from growing markets, such as renewable energy generation, livestock bedding, and use in sustainable building materials such as prefabricated housing,” adds Mark.

If you are considering planting Miscanthus, contact us for a personalised cashflow.

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