Day: September 19, 2021

  • What Are Conventional Loans? – MORTGAGE INSURANCE FOR INDIVIDUALS

    What Are Conventional Loans? – MORTGAGE INSURANCE FOR INDIVIDUALS

    WHAT ARE CONVENTIONAL LOANS?

    Conventional mortgages are homebuyer loans not provided or guaranteed by the government. Banks and credit unions offer conventional mortgages.

    Conventional loans are non-government-backed mortgages. Traditional loans include both conforming and non-conforming loans.

    Conventional conforming mortgages are governed by Fannie Mae and Freddie Mac (Freddie Mac). Some lenders may allow for non-conforming conventional loans.

    In the first quarter of 2018, conventional loans outpaced government-backed loans. They financed 74% of all new home sales.

    While conventional loans are more flexible, they are riskier and harder to get since they are not insured by the federal government.

    Conventional loans can be applied for using a variety of factors. However, conventional loans have higher credit requirements than FHA or government-backed loans. A 620 credit score and a debt-to-income ratio of 50% or less is ideal.

    Conventional loans are also known as conforming loans or mortgages. While they have certain characteristics, they are two separate types. Conforming mortgages fulfill Fannie Mae or Freddie Mac’s funding criteria. The Federal Housing Finance Agency (FHFA) sets the annual dollar limit; in 2021, a loan cannot exceed $548,250.

    All conforming loans are called conforming loans. But not all conventional loans are. For example, a $500,000 jumbo mortgage is conventional but not conforming since it exceeds Fannie Mae’s and Freddie Mac’s support limit.

    In 2020, 8.3 million houses will have FHA loans. The secondary market for conventional mortgages is large and liquid. Conventional mortgages are packaged into a pass-through mortgage-backed product traded in the mortgage To Be Announced forward market (TBA). Many common pass-through instruments can be securitized as CMOS.

    what are conventional loans details here

    HOW ARE CONVENTIONAL LOANS APPROVED?

    Conventional mortgages usually have a fixed interest rate, which means they will not change over the loan term. This means that banks and creditors must comply with stricter lending requirements.

    The FHA, VA, and USDA Rural Housing Service can assist banks in obtaining mortgages. These programs only accept borrowers who fulfil certain conditions.

    Banks, credit unions, and other financial institutions originate and service conventional loans. Many institutions also provide government-backed loans. Conventional loans do not always offer the same advantages as government-backed loans. There is no down payment or mortgage insurance required.

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    A conforming conventional loan accepts credit scores as low as 620. Some lenders, however, need a 660 credit score. Your credit score and history will affect your interest rate.

    Your credit score and history will determine how much interest you pay during the loan’s life. Conventional mortgages demand as little as 3% down, while some lenders provide 100% financing. If you don’t put 20% down, lenders will usually require you to pay private mortgage insurance, which ranges from 0.3 to 1.5 percent annually.

    Conventional mortgages are normally for 30 years but can be for 15 or 20 years.

    Since the 2007 subprime mortgage meltdown, lenders have tightened their lending standards. While “no verification” and “no deposit” mortgages have grown in popularity, the basic criteria have not. In order to apply for a mortgage, borrowers must complete an official application and pay a fee. The lender will next request documents for a full credit check, including the applicant’s credit history, score, and background.

    TYPES OF CONVENTIONAL LOANS:

    TYPES OF CONVENTIONAL LOANS details here

    Conforming Conventional Loans: These loans meet the standards of Fannie Mae or Freddie Mac. Amount up to the loan’s limit. The maximum loan amount for a single-family home in 2019 is $484 350. High-cost region borrowers can borrow up to $726,525.

    If you need a loan amount that exceeds the conforming lending limit, look for jumbo lenders. Jumbo loans require a higher credit score (700+). You may also need a lower DTI and bigger down payment. Despite these advantages, a conforming loan may have a higher interest rate than a conventional loan due to the lender’s greater risk.

    These are loans that a lender keeps in its portfolio rather than sells on the secondary market. But they must meet Fannie Mae and Freddie Mae standards. Portfolio loans provide lenders more leeway in underwriting, helping borrowers with bad credit or a high debt-to-income ratio. Portfolio loans are more costly and do not safeguard consumers as well.

    Conforming Subprime Loans: A debt-to-income ratio of less than 50% and a credit score of at least 620 are required for a conforming loan. If you have bad credit, you may be eligible for a subprime loan. These loans may be non-conforming, with high-interest rates and costs. A mortgage without waiting for credit to improve may be possible with these loans.

    Conventional loans fully amortized Homebuyers must make a monthly payment at the start and end of the loan term. Conventional loans can be amortized at fixed or adjustable rates.

    Fixed-rate mortgage loans have the same interest rate and hence the same monthly payments for the life of the loan. It has a fixed interest rate for a set length of time, usually between three and 10 years. An annual interest rate adjustment is made by the lender. Contrary to popular belief, adjustable-rate conventional loans have lower interest rates than fixed-rate conventional loans.

    THESE ARE THE DIFFERENCES BETWEEN CONVENTIONAL, FHA, GOVERNMENT-BACKED, AND USDA LOANS:

    Due to their unique features, government-insured mortgage loans may appeal to individual homeowners. Let’s examine each option and see who could be interested.

    You can get an FHA loan with a 500 credit score or 580 with a 3.5 percent down payment. If your credit score is too low for a typical loan, this may be an option. The Federal Housing Administration guarantees FHA loans and allows credit scores as low as 580. Conventional loans require a 3% down payment and a credit score of 620 to qualify.

    When deciding between an FHA and a conventional loan, the cost of mortgage insurance must be considered. With an FHA loan, you must pay premium mortgage insurance if you put less than 10% down, regardless of the value of your home. A conventional loan with 20% equity will not need you to pay private mortgage insurance.

    VA loans are government-backed loans for service personnel, their spouses, and dependents. VA loans must meet the same standards as regular loans. However, VA loans have a few extra benefits. First, VA loans do not need a down payment or mortgage insurance.

    USDA loans: These USDA-insured loans can help low- or moderate-income homebuyers acquire a rural property. These loans need no down payment and are credit score flexible. While conventional loans do not have a maximum income limit, USDA loans do, depending on your region and state. USDA loan eligibility is determined by the total incomes of all family members, not just the borrowers.

    USDA loans do not need PMI but do require a guaranteed fee equal to PMI. The total upfront cost is 1% of the total loan amount. Guarantee costs are generally less than PMI and can be included in monthly payments.

    CONVENTIONAL LOAN INTEREST RATES:

    CONVENTIONAL LOAN INTEREST RATES

    In general, conventional loans have higher interest rates. Those who take out these loans must pay mortgage insurance.

    Standard mortgage rates are determined by a number of variables. Factors to consider include the loan’s term and size, as well as current economic and financial market conditions.

    Mortgage lenders’ forecasts of future inflation set rates. The demand and supply of mortgage-backed securities also influence rates.

    The Fed raises the federal funds rate, increasing borrowing rates. Banks then charge their customers more. Mortgage rates and other consumer lending rates generally rise.

    A broker’s (or lender’s) points or fees are usually linked to interest rates. Paying more points lowers your interest rate. A point is 1% of the loan amount. It usually reduces your interest rate by 0.25 percent.

    Last, the borrower’s financial situation influences the interest rate: assets, creditworthiness, and the amount of down payment they can afford.

    If a borrower plans to live in a home for more than 10 years, they might consider buying points to lock in lower interest rates.

    PERSONAL MORTGAGE INSURANCE:

    If your down payment is less than 20%, you will need private mortgage insurance (PMI). PMI protects the lender in case of default. It varies by loan type, credit score, and down payment.

    PMI is usually included in your mortgage payment. But there are other options. Some buyers pay it with a higher interest rate, while others pay it in full. With PMI, you may choose the payment plan that best suits your needs.

    PMI does not stay on your loan forever. You don’t need to refinance to get rid of it. Once you have 20% equity in your house, you can ask your lender to stop charging PMI. Your lender may request a new assessment after you achieve 20% equity in your home. Your lender will automatically remove PMI from your loan after you reach 22% equity.

    THE BENEFITS AND DISADVANTAGES OF CONVENTIONAL LOANS:

    THE BENEFITS AND DISADVANTAGES OF CONVENTIONAL LOANS

    Convenience is a big draw for conventional loans:

    Low-interest rates

    Rapid loan processing

    Options for down payments start at 3% of the purchase price.

    A fixed-rate mortgage is available in several terms. Their ages range from 10 to thirty.

    Reduced PMI (PMI)

    While traditional loans are flexible, you must still make decisions. Determine your down payment, loan duration, and maximum purchase price.

    Among the drawbacks of conventional loans are:

    A typical loan requires a credit score of 620. Credit scores as low as 500 may qualify for an FHA loan. USDA loans need a credit score of 580.

    Decreased Minimum Down Payment Requirement: The minimum down payment requirement for VA loans has been increased to 3%. A bigger down payment is required to qualify for a lower interest rate or eliminate PMI.

    Qualification Requirements:

    Government-backed mortgages reduce lender risk. If you meet the criteria, you may be able to get one faster than a regular loan. A traditional loan, on the other hand, may need you to carefully assess your financial situation, as the lender is taking a bigger risk.

    ELIGIBILITY FOR STANDARD LOANS:

    ELIGIBILITY FOR STANDARD LOANS

    No lender can finance 100% of a property and determine if you can make the monthly mortgage payments (which should not exceed 28 per cent of your income).

    Eligibility criteria:

    A thirty-day pay stub showing income and profits for the year, two years of federal tax returns, sixty-day or quarterly reports on all assets, including savings and bank accounts, and two years of W-2 statements. Debtors must also be prepared to show proof of additional income, such as alimony and bonuses.

    Bank and investment account paperwork will be required to show you have enough money for the down payment and closing costs. Gift letters are required if a family or friend contributes to your down payment. These letters will state that they are not loans, and may require notarization.

    Employer verification: Lenders increasingly demand to see borrowers’ work history. Lenders may also call your workplace to verify your job and income. For recent job changes, lenders may contact previous employers. Borrowers who are self-employed may need to provide additional documentation.

    Documentation Addendum:

    To get your credit report, your lender will require your driver’s licence or state ID.

    Ineligibility factors:

    Generally, those who are just starting out, have a lot of debt, or have bad credit have a hard time acquiring traditional loans. These mortgages are difficult for people with:

    Not acceptable are recent bankruptcy or foreclosure, credit scores below 650, DTIs above 43%, and down payments of less than 20%, or even 10%, of the purchase price.

    If you are denied a mortgage, get a written notice. You may be eligible for other mortgage assistance programmes.

    You may be eligible for an FHA loan if you have bad credit and are a first-time buyer. For example, FHA loans are designed for first-time buyers and have higher credit requirements.

    TIPS FOR GETTING A CONVENTIONAL LOAN:

    Keep an eye on your credit score: Knowing your credit score is essential before applying for any loan. A conforming conventional loan requires a credit score of 620 or higher. Your credit score should be in the mid-to-upper 700s to qualify for a conforming conventional loan.

    Paying your bills on time, paying off credit card debt, and avoiding unnecessary borrowing will help you improve your credit score. Get a free copy of your credit report to help you discover areas that need more attention. Credit rehabilitation takes time, but may save you hundreds of dollars over the loan’s term.

    Even if you have gone bankrupt, you may get a conventional loan. You can get a conventional mortgage two years after finishing a Chapter 13 repayment plan. A four-year delay is required for Chapter 7.

    You’ll get a letter from a mortgage lender confirming their readiness to lend you money. This is not a mortgage application, however financial documentation such as tax returns, payslips, investment account statements, and bank records will be requested. It also involves a credit check. Preapproval letters may help you make an offer on a house. They are usually good for 60-90 days, allowing you plenty of time to choose a home. Before approving your mortgage application, the lender will check your credit and financial situation.

    Prepare a down payment: While traditional loans seldom need substantial down payments, higher down payments enhance your chances of getting a better interest rate. Some lenders need as little as 3% down, while others provide 100% financing. Save enough to cover at least 20% of the cost of private mortgage insurance.

    Check your debt-to-income ratio:

    When evaluating your debt-to-income ratio, lenders will look at your credit ratings as well as your debt-to-income ratio. Lenders prefer to see monthly liabilities under 36% of income. Lenders may extend the DTI limit to 43 percent if you have good credit, considerable cash, or a 20% down payment. Fannie Mae and Freddie Mac allow conforming loans up to 50% LTV.

    Commit to a 10% down payment: A 20% down payment eliminates PMI. A larger down payment lowers monthly payments and increases equity.

    Why keep a 15-year fixed-rate mortgage? 15-year mortgages have higher monthly payments but lower interest rates than 30-year mortgages. Fixed-rate mortgages outperform adjustable-rate mortgages. It is set for the loan term.

    Mortgage payments should not exceed 25% of take-home pay: This is our final phase. Buying a home within your means might help you save for retirement and college.

    Contact Todd Uzzell, our Mortgage Loan Officer, now! Get the tailored, thorough mortgage advice you need. Our business is dedicated to helping customers achieve their goals. We can help you refinance or buy a property.

    Mortgage Loan Officer, Todd Uzzell details here

     

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  • Dairy Farm Digesters – Anaerobic Digestion Process For Manure

    Dairy Farm Digesters – Anaerobic Digestion Process For Manure

    Anaerobic digestion and dairy farm digesters for waste management may appear to be an odd subject for this website. However, while this subject is still relatively unknown to most people, it will become a mainstream business for thousands of clever dairy farmers in the United States.

    The reality is that many investors are on the lookout for sustainable firms to invest in to shield their children from the pain of climate change. Plus, it’s worth noting that “green” firms are now performing exceptionally well on the stock market. Add to that the US government’s objective of minimising food waste, which farm digesters can readily handle in their digesters as the last option. And then, all of a sudden, you have:

    a lucrative sideline for farms and an investment opportunity for expert financiers willing to invest in bringing Dairy AD and food waste co-disposal to a new level.

    Therefore, continue reading and keep in mind that you originally heard about it here!

    The Anaerobic Digestion Process

    Anaerobic digestion is a biochemical conversion process used to treat and reduce the bulk of organic wastes, including solids, such as organic sewage sludge or concentrated industrial biowaste. Bacteria degrade biodegradable material in the absence of oxygen. Anaerobic digestion is a process used in business and on a small scale at home to manage trash and generate fuel (i. e. Renewable Natural Gas).

    Fermentation is a phrase that the majority of people are familiar with. Fermentation is a component of the process of anaerobic digestion. It is used industrially in the manufacturing of food and beverage products and the brewing of alcoholic drinks.

    Dairy Farm Digesters

    Background to Anaerobic Digestion in Dairy Farms

    Anaerobic digestion has a variety of environmental and economic advantages. The critical element is that it creates renewable energy in the form of methane, a naturally occurring gas. As a result, the number of dairy farm anaerobic waste digesters has gradually grown in the United States during the last few years.

    Previously, cow manure was deposited into a stagnant, smelly lagoon and left to dry before spreading on the fields. While it was resting, the emission of biogas (made naturally during anaerobic digestion) occurred spontaneously. This usually occurs before the manure slurry being spread on the fields. However, methane emissions contribute around 30 times as much heat as carbon dioxide. Therefore, if humanity wants to keep the planet’s average temperature to 1.5 degrees, governments must address agricultural methane emissions through much-improved manure management.

    In other words, naturally existing microorganisms convert slurry lagoons (which are found on all dairy farms without a biogas infrastructure) to methane gas. And, given the quantity of methane that contributes to global warming, this is extremely worrisome. This is because methane is a greenhouse gas that traps the sun’s heat in our atmosphere 25 to 35 times more effectively than carbon dioxide.

    The Dairy Farm Community Biogas Refinery Concept

    waste effects on marine life

    A typical dairy waste-to-energy facility is comprised of many farms housing between 2,000 and 3,000 dairy cows. Methane is captured from dairy manure via anaerobic digestion and sent to a central conditioning facility via low-pressure collecting pipes. After treatment and contamination removal, the gas is sent to local consumers via the existing underground natural gas distribution network.

    As previously stated, anaerobic digestion is when bacteria degrade organic matter in the absence of oxygen, resulting in the generation of biogas in four stages.

    Milk Production’s Carbon Footprint

    Operating an anaerobic digestion process plant that utilises manure as a feedstock for biogas generation is one of the numerous actions that the agriculture industry must take to reduce the carbon footprint of milk production.

    This technique removes a substantial amount of volatile solids (VS) from manure, therefore reducing the possibility of methane and carbon dioxide emissions during storage and later land application. The produced biogas can be utilised to generate electricity, refined further and used as low-emission automobile fuel, or even fed into the natural gas system.

    In some parts of the United States, managing residual swine farm flows, such as slurry and hydrolyzate, is also a significant environmental problem.

    It is important to seek innovative solutions to rivers and even aquifers caused by massive livestock activities. Additionally, it is desirable if they can be applied on-site, therefore minimising trash transfer. Co-digestion with anaerobic bacteria can be utilised as a long-term approach for controlling and valorizing these fluxes in dairy and swine farms. Installing a biodigester results in the generation of biogas for energy production and digested for agricultural usage.

    What is a biogas system?

    Anaerobic digestion is a natural biological process used in biogas systems to recycle organic waste by converting it to biogas, energy (the gas), and valuable soil products (liquids and solids). Following simple processing, biogas may be used to replace natural gas sustainably, while the digested materials—liquids and solids—can be turned into a variety of useful soil products, including:

    a peat-moss substitute for horticultural compost, a liquid fertiliser, and even a fibre appropriate for use as animal bedding.

    Biogas production from grass is also a well-established practical technology. Farmers with surplus grass that is not required for overwintering cattle might digest it to produce more biogas.

    Today, many dairy producers in the United Kingdom have not only considered changing their business model but have already sold their herds!

    Rather than milking cattle, they grow grass to feed directly to an anaerobic digestion unit and store silage for winter use. This makes sense in the wet regions of the United Kingdom and Ireland, where grass thrives. Producing the majority of other crops efficiently on their land is challenging for a variety of reasons:

    Frequent late frosts, a chilly, wet, and windy climate, and an inability to rely on dry weather and sunshine to develop the crop and allow harvesting to occur.

    While anaerobic digestion (AD) can help prevent significant volumes of methane, a potent greenhouse gas (GHG), from being released into the environment, it also helps protect farms’ aquatic environment from contamination. It minimises nitrate buildup caused by high-intensity farming and produces natural fertiliser, which can considerably reduce purchased fertiliser.

    When all of the climate benefits of AD are evaluated in conjunction with other emission reductions, the process becomes self-evident for Dairy Farm companies.

    According to AD Company Brightmark, generating RNG (Renewable Natural Gas) from dairy manure can reduce GHG emissions by 400 per cent when replacing traditional vehicle fuels.

    Dairy Manure Slurry the Ever Present Waste in Dairy Farming

    Dairy manure is a frequent waste product in dairy production, and it offers a variety of challenges in terms of storage, management, and disposal. As previously stated, dairy manure generates foul odours, toxic ammonia, and greenhouse gases that contribute to global warming if manure management is not prioritised.

    Never forget, though, that dairy manure digesters will always produce very little biogas per unit mass. When compared to the digestion of food waste, for example, it is extremely low. As a result, manure-based biogas production may be comparable in terms of cost per unit volume generated.

    The practical use for waste control and the overall fit within the dairy company make a biogas system attractive to dairy farmers who co-digest food waste. Adding food waste to a digester balances it and improves its performance significantly, as food has the most energy of any feedstock. If there was ever a moment when a quart could be squeezed from a pint pot, it is when food waste is added to a manure digester!

    Anaerobic digestion can also be configured so that it eliminates odours as it digests the manure. Additionally, by include food waste, the nutritional content of the digestate increases when applied to fields, resulting in a more beneficial soil amendment.

    Arla, a renowned dairy cooperative in the United Kingdom, has turned cow manure into a type of “vehicle-friendly gasoline” in a large new operation in Buckinghamshire. Under Arla’s idea, farmers will carry their cow manure to a new local anaerobic digestion (AD) facility. While there, it will be converted to pure biomethane and used as fuel. According to the firm, the pilot will eventually enable Arla to become the first dairy in the United Kingdom to use agricultural waste to generate biomethane to power its HGV distribution fleet.

    How are Many US Anaerobic Digesters Working?

    In the United States, anaerobic digestion systems for dairy farms are gaining popularity.

    The EPA reported in July 2010 that 157 commercial digester plants were operating across the US. 22 of the 157 digesters were located in New York, making it the country’s second most active digester state.

    As a consequence of the increase in AD facilities, New York State now has more than 50 digesters, with more ones planned or under construction.

    The Anaerobic Digester System

    According to the US EPA, 52 manure-based AD systems produced RNG in the United States in March 2021.

    These include pipeline injection projects as well as compressed natural gas (CNG) installations. Additionally, according to reports, 44 RNG initiatives are now under development (Source: EPA Agstar Livestock Anaerobic Digester Database). The EPA’s RNG website includes a map of all landfill and anaerobic digester-based RNG projects in the United States.

    The biogas digester is the system component that receives animal, human, and other organic wastes and allows them to decompose anaerobically, often as a slurry with water. The produced gas is collected in a storage container and then piped for further use as fuel. Variable volume storage (e.g., a flexible bag or floating drum) is more straightforward, less costly, and may be more energy-efficient than high-pressure cylinders, regulators, or compressors.

    Anaerobic digestion requires constant monitoring and frequent modifications to equipment settings to work correctly. All commercial AD process facilities should conduct routine laboratory testing on the substrate (each digester’s reactor tank). The experiments will examine the physical characteristics of the manure fed into the bioreactor tank, the substrate inside the tank (COD, per cent solids, ph, and other critical parameters), and the digestate output. All of these must be quantified and used to initiate corrective action immediately upon discovery of issues.

    Through an overflow pipe, the effluent is sent into a covered manure pit. The organic content of the processed manure is reduced and stabilised, resulting in an almost odourless, homogenised liquid that repels rodents and flies.

    During the AD process, only a tiny fraction of the manure is converted to biogas. Dairy cow excrement is made of around 85% water and 15% solids. Around 91% of these solids are volatile.

    One digester at Penn State converts between 20% and 30% of volatile solids to biogas, typical for most biogas systems. This Penn State digester project aimed to promote environmentally friendly technology and zero waste concepts in animal agriculture. Additionally, the operator plans to mitigate adverse environmental impacts.

    Dairy farms accounted for 203 of the estimated 248 biogas producers operating in the United States in 2017. (Source: U. S. Environmental Protection Agency [EPA], 2017 ).

    The Importance of Biogas

    In comparison to the global biogas capacity of 15 gw in 2015, the EU is the world leader in biogas energy production, with more than 10 gw installed and 17,400 biogas plants.

    Using anaerobic digesters to collect methane and convert it to renewable energy is one of the recommended methods for the dairy sector to reduce its carbon footprint. Numerous initiatives around the country continue to spur the growth of biogas facilities.

    In the United States and Europe, farm operations have shifted drastically: small farms are disappearing, while farm size and animal population on larger farms are increasing. Animals’ growing spatial density has a variety of negative environmental implications. Anaerobic digestion is one technical solution for minimising the bulk of these impacts while simultaneously providing a source of regional energy.

    The economic viability of using dairy-cow manure for any of the following:

    on-farm production and use of biogas for electricity and heat generation, or conversion of biogas to biomethane, a natural gas substitute

    This article evaluates.

    With their four-chambered stomachs, cows have long been considered models of digestive ability, as anybody who has evaded cow pies in a field will confirm.

    Each day, hundreds of pounds of faeces are produced by these grazing bovines and other animals. Concerns about animal waste management, energy conservation, and organic farming have revived interest in generating biogas from livestock manure. Two significant projects utilising clusters of anaerobic digesters have attracted the interest of dairy producers around the country.

    When the building of the US biogas plants is complete, this network of dairy biogas plants will likely be the world’s largest system of its kind.

    BioGas Generation with Dairy Manure?

    Anaerobic digesters are used to convert cow manure to biogas. Because biogas, like natural gas, is mostly composed of methane, it may be utilised to create electricity and power automobiles.

    Renewable natural gas may be produced on animal farms using biogas recovery systems. Animal excrement is collected and fed to an anaerobic digester to stabilise and maximise methane output. The generated biogas may be converted to rng and used to fuel natural gas vehicles.

    The capital investment required to construct a digester varies significantly depending on the design, size, and equipment utilised to generate biogas and/or separate manure fibre. Currently, the capital cost of a complete digester system is between $1,000 and $2,000 per cow, depending on herd size, with the cost of operating an engine-generator set at $0. 015 to $0. 02/kWh of energy output.

    Anaerobic Digestion of Dairy Manure in the US

    Dairy digesters are a sustainable technology that use cow faeces to generate methane, a renewable energy source and transportation fuel. Multiple environmental and social benefits accrue from the method. Additional information about dairy digesters is available on the USEPA’s Agstar anaerobic digestion webpage.

    It is quite uncommon for dairy farms to discharge a significant amount of milk from milking operations to manure digesters. Anaerobic digestion of animal dung has the capacity to inactivate enteric pathogens, reducing exposures to livestock and humans when digested materials are dispersed on land or used as bedding for animals.

    Anaerobic Digestion of transport fuel or production of electricity?

    Anaerobic digestion (AD) of animal faeces is a very effective method of converting undigested plant carbon to methane for use as a transportation fuel or power generation.

    While AD is most commonly associated with dairy farming, it is also used to regulate manure and wastewater on swine and poultry farms. Anaerobic digestion systems can be classified as passive, low-rate, or high-rate. Due to the potential reduction of greenhouse gases (GHG) and the economic benefits of generating renewable energy from anaerobic digestion, Ad is a viable GHG emission mitigation technology for dairy and swine farms.

    Energy-related expenditures can account for up to 29% of total farm operating expenses. The continuing increase in the real cost of energy-related farm inputs has significantly affected agricultural output costs. However, agriculture can replace some of the purchased energy in fossil fuels, commercial fertilisers, and field production of animal feed with bioenergy and organic fertiliser made from onsite renewable biomass such as animal manure to be economically and environmentally sustainable.

    Anaerobic fermentation does not deplete nutrients. Anaerobic digestion of dairy manure on-farm is being used to generate power and eliminate odours. Acidogenic bacteria convert the majority of the organic content in manure to volatile fatty acids (VFAs), consumed by methanogenic bacteria, which produce methane, carbon dioxide, and a few other gases. While these microbial processes transform nitrogen, phosphorous, and potassium, they do not remove these nutrients.

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