The aim of this study was to assess the effect of a three-year application of digestate from an agricultural biogas plant on the physicochemical properties of highly acidic pHKCl 4.4 ± 0.23, silty loam soils with low macronutrient content and on the yield and nutritional value of switchgrass (Panicum virgatum L.) biomass harvested for green fodder. The experiment included the following treatments: (1) O (control)—no fertilisation, (2) NPK—mineral fertilisation with (in kg ha−1) 150 N, 53.0 P and 105 K, (3) biogas digestate at 30 m3 ha−1 and (4) biogas digestate at 60 m3 ha−1. The higher application rate of biogas digestate significantly reduced soil acidity to pHKCl 4.9 ± 0.18 and improved its sorption properties. It also increased the soil organic matter content from 5.6 ± 0.21 to 6.4 ± 0.22 g Corg kg−1 and of K and Zn. The higher level of biogas digestate significantly increased switchgrass yield to 5.15 ± 0.26 t ha−1. The lower application rate of biogas digestate resulted in forage yield of 4.30 ± 0.20 t ha−1 comparable to that obtained after mineral fertilisation (4.33 ± 0.22 t ha−1). Following application of mineral fertilisers and the higher level of biogas digestate, the number of panicles per plant (150 ± 2.49–157 ± 0.6.17), panicle height (107 ± 1.98–114 ± 2.08), crude ash content (61.2 ± 0.43–65.5 ± 0.38) and protein content (106 ± 0.59–92 ± 1.11) in the switchgrass biomass from the first cut were higher than in the case of unfertilised soil (110 ± 3.81, 93 ± 1.32, 55.5 ± 0.40, 80.3 ± 0.37). The use of mineral fertilisers and biogas digestate increased the content of protein, P and Mg in biomass from the second cut. The results suggest that the use of digestate improved the physicochemical properties of highly acidic soil and increased the yield of switchgrass forage without diminishing its nutritional value