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Home » News » Welsh Diversification Scheme offers 40% funding for Miscanthus establishment – apply by 17 January 2025

Welsh Diversification Scheme offers 40% funding for Miscanthus establishment – apply by 17 January 2025

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Farmers in Wales looking to diversify their operations can now benefit from the Agricultural Diversification and Horticulture Scheme, which provides capital grants for agricultural diversification and commercial horticulture projects. This includes financial support for establishing Miscanthus, a sustainable, low-maintenance biomass crop.

Key details about the scheme include:

  • Application window: 4 November 2024 – 17 January 2025
  • Budget allocation: £1.5 million
  • Grant range: £3,000 to £100,000
  • Grant rate: Up to 40% of eligible costs for Miscanthus establishment (excluding VAT)
  • Eligibility: Farmers meeting specific land or labour requirements
  • Project completion deadline: All funded projects must be completed by 31 March 2026.

Why Miscanthus?

Miscanthus offers multiple benefits for farmers and the environment. It is a perennial crop requiring minimal maintenance, contributing to improved soil health and delivering a renewable biomass resource. Additionally, through a partnership with Terravesta, Miscanthus growers can secure a reliable income via a long-term, index-linked contract, including a take-off guarantee for the crop, supplying renewable power stations and bedding markets. 

Farmers interested in learning more about this scheme and the potential returns of Miscanthus cultivation are encouraged to book a meeting with Terravesta to explore further details.

Miscanthus in Wales

Ricard Tudor is a mixed farmer, with beef and sheep on 170 hectares in West Wales, who uses Miscanthus to bed down his livestock.

The Miscanthus is grown by IBERS – Aberystwyth University, and Richard hires contractors to harvest the crop. He chips it and has found it’s a very effective bedding material.

“It’s difficult to grow barley in this area, but we are good at growing grass!”

“We harvest the Miscanthus each April and this fits in with our farming year, and we have empty sheds, so the chipped Miscanthus is in a pile for easy access when needed,” he says.

Plenty of Welsh farmers are situated in upland highly exposed areas, and report difficulty in establishing cereal crops. But one Miscanthus trial plot is thriving at 1000 feet above sea level, with no fertiliser applied.

It’s a project that’s been implemented in by Pwllpeiran Upland Research Centre, and on the plot, is a Miscanthus giganteus crop as well as new hybrid trials.

Miscanthus specialist, Terravesta, works closely with IBERS to develop new hybrid varieties of Miscanthus, and launched Terravesta AthenaTM  in 2019, which boasts higher, earlier yields. 

“Terravesta AthenaTM generally takes its first harvest in year two and reaches maturity faster than Miscanthus giganteus, and some of our growers are reporting a first harvest of eight tonnes per hectare, going onto a mature yield of between 10 -17 tonnes per hectare depending on the soil type,” explains Florian Ilias, Teravesta managing director.

For inquiries and additional information about Miscanthus and Terravesta’s long-term contracts, email info@terravesta.com or call 01522 731873.

This scheme is a unique opportunity for Welsh farmers to embrace sustainability and financial resilience while contributing to low carbon farming and renewable energy. Apply now before the 17 January 2025 deadline.

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