Leasing a proportion of their farm for a solar PV (photovoltaic) development and replacing their dairy cows with sheep has secured the future of Eastacombe Farm for Geoff and Linda Petherick, and their son, Michael.

Eastacombe Farm near Holsworthy in Devon has been farmed by four generations of the Petherick family and run as a dairy unit since the 1950's.  However, low milk prices and rising input costs recently forced Geoff and Linda Petherick to re-assess the future of their business: with the farm’s level of debt increasing rapidly, the Pethericks retired from milk production in favour of leasing 20 acres of land for a solar PV development and replacing the cows with sheep.

“We were only milking 50 Ayrshire cows on our 72 acres of land, and were struggling to make the farm’s books balance,” Geoff Petherick explains.  “We’d worked hard to build a productive dairy herd, but despite working all hours to keep the farm afloat, low milk prices and soaring input costs meant we were losing money.

“Over a seven year period we saw our overdraft go from nothing to £70,000.  We knew we couldn’t go on like that and took the difficult decision to sell the cows.”

The Eastacombe herd was sold in 2006, shortly after which the Pethericks sold three acres of land as a pony paddock.

“We used the equity to buy a small flock of sheep and Geoff went to work on a nearby dairy farm to earn an additional income,” Linda describes.  “We were no longer losing money hand over fist, but we still needed to find a way of making better use of the land so that we could keep the farm in the family.”

In 2010 the Pethericks were approached by Roy Amner of TGC Renewables to discuss a solar PV proposal which offered the family a chance to earn a long-term rental income from a modest parcel of their land.

“Roy contacted us out of the blue and offered us a very attractive deal,” Linda continues.  “Our primary goal has always been to keep the farm in the family so that our son, Michael, has the chance to take over the land should he wish to do so.  At the time we hadn’t really considered diversifying into renewable energy but we soon realised that the TGC proposition offered the farm a bright future.”

The deal proposed a 25 year land lease option on 20 acres, giving the Pethericks a guaranteed, index-linked income.  After that period, the lease agreement can be extended for an additional five or ten years, or the site can be returned to its original condition for full agricultural use.

“We didn’t know much about renewables or the technicalities of leasing our land, but the team at TGC were fantastic,” Geoff explains.  “Roy had already done a desktop survey on our land and was confident that it was ideal for a modest solar farm.

“TGC covered 100% of the planning and legal fees and handled the entire process for us from planning through to the commissioning of the panels.  They processed all the relevant paperwork, and listened to our needs as farmers by taking our best land out of the plans and substituting it with some lower grade land.”

Planning permission for the solar park was granted in the summer of 2011, with 14,700 solar panels being installed in 2012.  The site now produces 3.6MW hours of electricity each year – enough to power up to 780 homes.

“Selling the dairy herd was a hard decision to make but, for us, it was the right thing to do and we have no regrets,” Linda concludes.  “After years of struggling against meagre milk prices, we now have a diversified business which gives us a guaranteed income.  We are no longer under constant financial pressure and the farm is secure for the foreseeable future.”