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NEWS RELEASES - 2006
Energy alternatives explored with guidance

(Guelph, ON - September 27, 2006) In the past two years, interest in creating alternative forms of energy for on-farm use has been surging. It is now a developing industry with a growing number of producers, landowners and companies that are either busy investing or learning all they can about the topic.

But as interest continues to peak, so does concern over the lack of resources and infrastructure to help those exploring such investment opportunities. William McClounie, Manager of Special Projects at ACC Farmers’ Financial in Guelph, Ontario, is involved in the Renewable and Alternative Energy Financing, a project that provides assistance in business plans and strategies. The financing proposal is funded in part by the Agricultural Management Institute (AMI), administered by the Agricultural Adaptation Council, also in Guelph.

“Producers are interested in investing in renewable or alternative energy systems on the farm, and in order to do that, they need assistance in creating business plans and feasibility studies on investing,” says McClounie. “We have to look at whether the producer has the ability to do this from an infrastructure point of view, and from a management point of view.”

The producer can then take the business plan to a bank or other lending institution for funding consideration. After that, McClounie and his partnering consultants can channel a producer through a training program or business planning program, ensuring they acquire the skills needed to operate such a system.

Still in development is the second phase of the project, which will be a series of workshops built around the idea of holding one-on-one meetings with consultants. “We didn’t just want to create a report and hand it off to people,” says McClounie. “We wanted to create a report and a template, and then hold regional meetings to bring people in and to show them the findings and the business strategies that will help them. We can only do that face-to-face.”

An added emphasis at this stage is to ensure the template can adapt to changes that will come as alternative energy systems grow and evolve.

Success sparked by funding initiative
In a growing trend that encourages farmers to become more self-sufficient, the AMI program was created to help develop business management tools. In total, the fund will provide Ontario farm families, farm managers and farm business advisors access to a share of $5 million through federal and provincial sources. Unveiled in 2005, AMI will help farmers with benchmarking and best management practices, business risk management, human resources management, training, and market opportunities.

“Renewable energy initiatives are at that magical ‘tip-of-the-iceberg’ stage, where we recognize the tremendous potential, and not just for return on investment, but for energy creation for the Province of Ontario,” says Peter Vander Zaag, current chair of the AMI program. “What we need now are business guides or coaches who can assess those ventures, then help them find the information and training they need to bring their vision to reality.”

Energy sources vary
There are no limits on the types of energy-generating systems; geo-thermal systems, wind, solar, bio-gas (anaerobic digesters) or on-farm ethanol plants are all eligible.

“We haven’t built any fences around the type of technologies to put in place, just that it must be profitable,” says McClounie. “We want to ensure the producer can make that investment decision with the right tools,

In addition to developing business plans and strategies, McClounie has a legal firm that can provide assessments on contracts and leases, as well as a chartered accountant and an engineer.

For more information about AMI or to discuss AMI project ideas please contact the Agricultural Adaptation Council (AAC) at (519) 822-7445 or visit www.adaptcouncil.org.

The AMI program is funded through the Renewal chapter of the federal-provincial-territorial Agricultural Policy Framework, an initiative designed to position Canada’s agri-food sector as a world leader. The AAC administers the AMI program on behalf of the Government of Canada and the Province of Ontario. For more information on the AMI program, contact the Agricultural Adaptation Council at (519) 822-7554, ami@adaptcouncil.org or visit the AAC website at www.adaptcouncil.org

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For more information contact:
Nadine Buitenhuis
Communications Manager
Agricultural Adaptation Council
Phone: (519) 822-7554
Fax: (519) 822-6248
E-mail: nbuitenhuis@adaptcouncil.org
Website: www.adaptcouncil.org


 
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