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1. Project Title: Energy Autonomous and Environmentally Clean Farm (EAECF)

2. Duration: Two 5 year lasting phases (10 years altogether).

3. Project Site: Main experimental continental location of farm is in the village Kovilj near Novi Sad (Republic Serbia), secondary on hilly land in Sremski Karlovci and third Mediterranean location in village Markovi}i near Budva (Republic Montenegro).

4. Government Implementing Agency: Federal Ministry of Development Science and Environment, Yugoslav Committee for UNESCO.

5. Executing Agency: Faculty of Agriculture Novi Sad.

6. Estimated Starting Data (month, year): November, 1996.

7. Government Inputs:

- For location Kovilj 162 000 US $).

- For location Sremski Karlovci 115 000 US$

- For location Markovi}i 100 000 US $).

Local inputs are existing arable land, buildings, machines and labor which will be participate in project and commune funds of Novi Sad, Sremski Karlovci and Budva.

8. International Financing Organization (requested): 

US $ 263 000 for location Kovilj 

US$ 196 000 for location Sremski Karlovci and

US $ 196 000 for location Markovi}i.

9. Financing by Private Funding (requested): US $ 250 000

10. Mixed Financing (public and private - requested): US $ 250 000

1. Country Background

"EAECF" project is to take place in Federal Republic of Yugoslavia. Agriculture of FR Yugoslavia is mainly in hands of small individual farmers. About 1 million individual agricultural households own averagely 4 ha of arable land. This project should point out the possibility of activating the resources of individual agricultural household in the process of food and energy production from renewable energents. Since agriculture is one of the fundamental branches of Yugoslavian economy, this project has support of both federal republic ministries (Yugoslavian, Serbian and Montenegrian).

2. Project objectives (short, medium, long - term):

- The main short-term project objective is to prove that it is possible to increase food production on individual agricultural households by use of renewable energy sources. The use of renewable energy will also make the farm completely energetically autonomous. This will lead to revitalization of distant farms which were abandoned because of high costs needed for their connection to the public electrical network. Faster economical progress of rural areas is also expected as well as the increase of farmers' living standard.

- Medium-term project objective is food production based on the principles of sustainable agriculture together with implementation of ISO 14 000 and IFOAM standard. Such food has much higher price on the world market, which means further increase of farmers' income. This would create all necessary conditions for greater existential safety of farmers and in the end it would stop migrational process village-city. Application of high technologies in food production and production of energy from renewable sources requests co-education (extension) of farmers in the domain of high technologies. This leads to the new civilizational and cultural progress in the rural areas. Increase of live stock, manure production and application of renewable energents will stop degradation of arable land and prevent further air and water contamination. The process of ecological repair of rural areas will begin.

-Long term objective is achieving high living standard in village areas of Yugoslavia, reverse migrational flow city-village, increase of birth rate and establishing healthy environment in the entire agricultural-forest complex. Positive results of project in Yugoslavian conditions can be used as a guidelines for undeveloped countries. It will be proved that industrialization and urbanization are not the only suppositions of society development.

Project description

The lack of oil derivatives in Yugoslavia during the time period 1992-1995 (blockade) seriously jeopardized the whole agricultural production. Intensive agriculture requires direct consumption of 240 l of diesel fuel per year per 1 ha (agrotechnical operations + transport + drying) and significant amount of oil used in indirect consumption (production of artificial fertilizers and pesticides). The rural household itself is also a big consumer of nonrenewable energy and 90% of this is used for heating purposes (buildings and processes) and for hot water production. Existing high mechanized and chemicalized agriculture causes soil degradation, and including industry, urbanization and transportation causes food contamination with over 40000contaminants (only 1/4 of which have partially explored metabolic pathways and dangers for human health). 

Because of all these facts Institute for Agricultural Engineering, Novi Sad, has conducted a study on the exploitation of renewable energy sources in agriculture as well as on the suitable technics and agrotechnologies. Maximum attention is paid on ecological and economical performances of agricultural production. 

A few production models aimed to avoid the use of nonrenewable energies and to have good ecological effects have been made. In the same time these innovative solutions shall have the best economical effects (minimum of inputs and maximum of outputs), have been made. It is concluded that combining plant and stock production and using renewable energy sources (sun, wind, biogas, biooil, surface geothermal energy) on the small farm it is possible to produce per one hectare and per one year 47 500 MJ of energy in food (plant and stock origin), 10 000 kg of biofertilizers and at the same time, by maximal use of renewables, to produce on the basic farm module (buildings, yards, 4 ha of arable land) 200 000 kWh of thermal energy and 30 000 kWh of electrical energy per year. For the real economical justification of these solutions is necessary to define and adopt appropriate criteria for the ecological effects evaluation. Concerning that an average farm in Yugoslavia includes 4 hectares of cultivable soil, with the growth tendency, it is decided that all the aspects of this energetically independent and ecological agricultural production are to be experimentally proved under these conditions.

4. Expected outputs

During realization of project it is expected to have more outputs. Those are:

-Establishing technically and economically acceptable use of renewable energents on the farm and the possibility of creating energetically autonomous farm.

-Establishing optimally acceptable plant and live-stock production according to ISO 14 000 or IFOAM standards.

-Establishing the possible relation of outputs and inputs, productivity and farm incomes.

- Establishing the needed level of farmers' education in the domain of modern technics and high technologies.

5. Target Beneficiaries:

The objective of the project is experimental verification of energetic, agrotechnical, agrotechnological, economical and ecological aspects of combined plant and stock production based on the use of renewable energies, optimal use of electric energy and high technologies (specially electronics, automatics, computers and biotechnology) with maximum possible application of sustainable agriculture and sustainable development approaches. Experimental farm is being built in rural area on a module of 4 hectares in the first phase and will rise up to 8 and 16 hectares during the project realization. In the experiment in plane land of Kovilj will specially participate Agricultural community and 12 existing individual agricultural households. In hilly land of Sremski Karlovci will participate also Agricultural community and 3 individual agricultural households (orchards, vineyards, sheep, goats, poultry and renewable energents). Third experimental mediteran area is in Markovi}i - near Budva with 16 ha of terraced arable land and 1000 ha of unarable land covered by bushes and litle trees (makia). All important factors for these farmers' becoming a part of EAECF system will be established.

The main objective of project is to prove that it is technologically, technically, economically and ecologically justified to start combined organic plant and stock agricultural production based on renewable energents (sun, biogas, biodiesel, wind, surface geothermal energy). We are going to establishthe necessary level of high technologies and politechnical education of farmers needed under these conditions. We will search for the optimal production areas where this technology could give the best effects. We expect that intensive, high-productive, low-cost and ecologically acceptable production will be possible on the small farm as well as on the large one (price decrease of electronics, computers and other high technology equipment at the world market will make it possible).

Globally, target beneficiaries could be divided in 4 main categories (dimensions): energetical, agricultural, ecological and civilizational.

- Through energetical aspect we want to show the technical possibilities and economical justification of energy production from the renewable sources on the farm. On the model it is estimated that the farm could produce 30 000 kWh of electrical energy annually (by use of cogeneration biogas machines, photovoltaic collectors and windgenerators) and 200 000 kWh of heat energy annually (by use of cogeneration biogas machines, heat solar collectors, passive solar architecture, heat pumps and biooils).

- Through agricultural aspect we want to show that on the principle of sustainable agriculture and by application of high technologies, it is possible to produce enough food for 34 inhabitants annually on 4 ha of arable land for the price which is acceptable for the market.

- Through ecological aspect we want to achieve environment preservation in the rural areas and produce healthy food according to ISO 14 000 standard.

- Through civilizational aspect we want to prove that on the small agricultural household it is possible to obtain high incomes in healthy environment with new cultural-civilizational values. Positive results of this experiment could influent the migrational process village-city by stopping it in the world proportion.

6. Project Sustainability

It is expected that during 10 years of realization, this project will draw attention of Yugoslavian and international professional and scientific public. According to our solutions "Energy Autonomous and Environmentally Clean Farms" can be examined and verified on all continents. Energetically Autonomous and Environmentally Clean Farm is by its nature already sustainable project.

7. Partners

On the Faculty of agriculture in Novi Sad a special organizational unit is formed for realization of "Energy Autonomous and Environmentally Clean Farm" project. The main experimental location of the farm will be in village Kovilj 20 km away from Novi Sad. There, with their own productional resources, in the project will participate Agricultural community Kovilj and 12 individual agricultural households, everyone of them with his own scenario of organic food production and production of energy from renewable sources. Second location is on the orchard-vineyard hilly land of Sremski Karlovci (10 km from Novi Sad). Preparations are in progress for opening of the Mediterranean location of farm in village Markovi}i near Budva in Montenegro. There the farm will exist on 16 ha of terraced arable land and 1000 ha of unarable land covered by bushes (this farm will provide citizen of Budva with milk)

During the realization of project Faculty of Agriculture Novi Sad will establish professional and scientific cooperation with Faculty of agriculture in Belgrade and Scientific Institute of field and vegetable crops in Novi Sad. Connections will be established with other scientific institutions as well, both in Yugoslavia and abroad, depending of needs and mutual interests.

We also think that important cooperation will be established with countries and scientific institutions which have submitted High Priority National Projects, i.e. which are running similar projects. Those are particularly Italy, Greece, France, Spain, Russia, China, India, Israel, Jordan, Palestine, Morocco, Libya, Syria, Cyprus, Turkey, Malta, Zimbabwe, Democratic People's Republic of Korea and other

8. Risks

During the realization of the project two kinds of risks might occur: productional and economical risks.

Productional risks are the risks of production. Considering that the production on the farm is very intensive and controlled these risks, in the sense of quality and quantity, are minimal. Since the production on the farm is highly dependent of renewable energents, lack of energy during certain critical phases of production may occur because of the fact of simultaneous consumption and unfavorable constellation of certain energents' contribution. Because of that during the beginning phases of project unrenewable energents and connection to electrical network will be used as reserve-sources of energy. During the later phases of project the critical problems in use of renewable energents will be discerned, so that the special reserves will be created in the system which will grant the full energetical autonomy of the farm.

Economical risks are caused by the price of equipment, productional inputs and agricultural products, as well as by the possibilities of finding market for the goods. Equipment inputs are the most important point of the costs. On the market of these inputs there is a tendency of prices decrease. The costs of raw materials in ecological production are minimal, so that eventual increase of these costs will have no serious influence on the efficiency of the project. So far, domestic prices of ecological products aren't very stimulating. As we're speaking, the government of Yugoslavia hasn't built any kind of economical mechanism for protection of such products, so that the biggest part of ecological food production will be aimed at foreign markets. Market risks will be minimized by the contracted production for the known buyer. Eventual surpluses of renewable energents may be placed on the market and those surpluses will be extra profit of the farm.

9. Project Financing

- Projects and studies US $ 280 000
- Buildings and equipment US $ 1 000 000
- Production costs through 10 years US $ 250 000
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TOTAL US $ 1 530 000

10. Project Budget

- Yugoslav Government Inputs US $ 375 000
- International Financing Organization
(requested) US $ 655 000
- Donators (public and private) US $ 500 000
_________________________________________________

TOTAL US $ 1 530 000

11. Incremental Cost to be Covered by a grant: US $ 500 000

12. Project "Energy Autonomous and Environmentally Clean Farm" is firstly high priority Yugoslavian project, but because of its multidimensionality and universality of problems which it solves it has all the elements of the global project. Because of similar climatic conditions this project has also regional importance for Balkan and Mediterranean area.

13. Project will last 10 years, but after 5 years the recapitulation of realized researches will be done.

14. The fundamental problem in this phase of project is lack of finances, and finances are necessary so that we could buy hi-tech equipment which will be used by all these households together. Actually, the equipment needed consists of a bio-gas reactor of 100 m³ which costs 100 000 DEM, photovoltaic collectors which cost 50 000 DEM and 2 windmills for watering which cost 30 000 DEM. About 50000 DEM are needed to pay the researchers during this year and about 20 000 DEM for informational and telecommunicational support.

If private international investors decide to support our EAECF project of course that it money return is possible.

Energy production from renewable sources and production of high-quality ecological food (organic) have their market value, so all who receive finances can freely oblige to return the money. However, considering that this is scientific project it will not be possible to return 100% of the given amount (it is estimated that about 50%-60% could be returned). Also, the installments should be paid off during longer period, for example 10 years. We think that under these conditions investors could be found, so we kindly ask for help and intervention of World Solar Commission.

Lastly, we emphasize that within EAECF project we have taken measures to develop new products by employing Yugoslavian factories. We succeeded to connect factories "POBEDA" from Novi Sad, "SEVER" from Subotica, "14. OKTOBAR" from Kru{evac and "KRU[IK" from Valjevo, so that they now work together on the development of small universal electric joint-tractor. The first prototype will be ready in 1999 and we consider it the crucial product for the concept of EAECF. On a small farm (maximally 4 ha), electric tractor will have enough electric energy from renewable sources that to accomplish all agro-technical operations on the field and other mechanical operations on the household (lifting and carrying the weight, digging holes and canals...). We think that these technical solutions of ours will be precious for modernization and effectuating the resources on small agricultural household all around the world.

We also will develop prototyp of windmill for watering, small biogas digestor, electric powered machines in agriculture etc.

14. Contact Person
 

Project coordinator of "Energy Autonomous and Environmentally Clean Farm" is

Prof. dr Petar Kavgi}

Faculty of Agriculture Novi Sad
21000 Novi Sad, Trg D.Obradovi}a 8
YUGOSLAVIA
Tel: +381-21-59958, Fax: +381-21-59989
e-mail: pekav@polj.ns.ac.yu

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