The struggles of the dairy industry have been widely covered by the farm press and national news organizations. Decreased fluid milk consumption, large dairy processor bankruptcies, small dairy exits, and the rise of plant-based alternatives are all causing headaches for the industry. But there is a bright spot. The demand for clean energy is causing a resurgence in interest in anaerobic digesters. Although digesters have been “on the horizon” for years, the economics never made them practical, except at a few farms. That has changed in the last twelve months.
Many farmers are now being approached by developers—typically investors and energy companies--that want to build digesters on their farm. What questions should a farmer ask a developer before deciding to sign a letter of intent to proceed?
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The 45Z tax credit for production of sustainable fuels will require farmers to verify compliance with ag data.