Seán Sherlock (Cork East, Labour)
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Question 67: To ask the Minister for Agriculture, Fisheries and Food the policy in regard to assisting landowners in growing crops for production of biofuels or alternative energy; and if he will make a statement on the matter. [5075/09]

Trevor Sargent (Dublin North, Green Party)
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The Department of Agriculture, Fisheries and Food recognises the key role that farmers can play in providing feedstocks for biofuel and biomass production. Our role is to support the supply side of the market by assisting farmers to grow energy crops. In accordance with the national bioenergy action plan, we are providing a number of incentives to improve the profitability of growing energy crops.

In 2007, we introduced a bioenergy scheme to encourage farmers to plant miscanthus and willow for bioenergy purposes. Aid is available to cover 50% of establishment costs, subject to a maximum payment of €1,450 per hectare. The scheme has generated considerable interest with more than 1,800 hectares planted so far. The third phase was launched recently to aid the planting of a further 1,800 hectares in 2009. Further supports for energy crop production include EU and national premiums worth €125 per hectare. Aid for energy crop production is also available under the rural environment protection scheme and the disadvantaged areas scheme, subject to some restrictions on the areas planted. As a further support measure, land planted with energy crops can qualify for the single farm payment.

The Department is also funding research projects that relate directly to energy crops through the research stimulus fund programme. The aim of this research is to identify plant varieties and crop production systems that are most suited in the Irish context. Teagasc is also assisting farmers in energy crop cultivation. It is carrying out research on growing energy crops at the Oak Park Crops Research Centre and it provides technical advice to landowners on how best to grow energy crops. In 2008, it published a farm diversification manual providing detailed technical advice on energy crop cultivation. Together with Teagasc, my Department co-funded an educational DVD to advise farmers on planting and harvesting willow and miscanthus. I can obtain a copy of that DVD for the Deputy if would like it.

Additional information not given on the floor of the House.

These measures are intended to complement the demand side schemes introduced by the Department of Communications, Energy and Natural Resources to promote the use of biofuels in the Irish transport market. The mineral oil tax relief scheme valued at €205 million and the proposed biofuel obligation scheme should provide an additional stimulus for the production of energy crops.

The cultivation of energy crops provides an alternative land use option for farmers and is part of the solution to mitigating greenhouse gas emissions. I am confident that the measures introduced by my Department will assist farmers in realising the many opportunities to grow energy crops.

Seán Sherlock (Cork East, Labour)
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I understand the target set by the EU Commission for the production of biofuels is 10% by 2020. The European Parliament and its environment committee, which consists of members from across the political divide, voted to scale down the proposed EU-wide target of 10% by 2020 to 4% by 2015. Notwithstanding the 1,800 hectares of miscanthus planted, to which the Minister of State referred, we have moved from the planting of 137 hectares of energy crops in 2003 to just more than 9,000 hectares in 2007, which represents approximately 0.02% of all agricultural land. Teagasc has estimated that potentially 75,000 to 100,000 hectares of land could be devoted to energy crops in Ireland without impacting negatively on food production.

Are the targets that have been set realistic? Is the Government doing enough to encourage farmers to get into the business of growing crops for fuel? How will the food versus fuel debate impact on Ireland? What is the Government doing to encourage more farmers to diversify into such production? Is there a ready market available for fuel crops?

Trevor Sargent (Dublin North, Green Party)
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Tá cúpla ceist ansin. Ar dtús, on the fuel versus food issue, as the Deputy mentioned, we are a long way from the conflict in this area that pertains in other parts of the world, given that we have only 6,000 hectares of such crops planted. The evaluation is that we could plant up to 70,000 hectares before we would have to make the difficult choices being made in other parts of the world. Such production impacts mainly on water resources. In those countries the volume of water taken to grow fuel crops might otherwise be for human consumption.

There is no doubt that a market must be available for such crops. There also must be a willingness to produce them. Miscanthus is more popular than willow, even though there is good reason to plant willow. Marketing is also a factor. The trend can be detected from what is being done in the sector. For example, cereal farmers are more inclined to diversify into oil seed rape production, which necessitates the use of similar machinery and agronomy, of which the farmers have experience.

A number of factors come into play. It is too early to say whether the 10% target is realistic. The jury is still out on that. It will not be advantageous for us if the target set is complied with through imports of such crops simply for the sake of complying with a bureaucratic target. We must closely monitor the position to ensure we are not impacting on other marketable areas of food production for the sake of reaching a nominal percentage target set by the EU.

Seán Sherlock (Cork East, Labour)
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I put it to the Minister that it is hardly a bureaucratic target, it is a political target that was reached partly with the agreement of the green movement throughout the European Union. I do not mean to be facetious when I say that.

Trevor Sargent (Dublin North, Green Party)
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Politics is part of bureaucracy, as the Deputy knows.

Seán Sherlock (Cork East, Labour)
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We are currently at a point where fuel prices have decreased due to the fall in oil prices. The Government has a tendency to take its foot off the pedal with regard to developing a coherent and long-term policy. Post CAP reform, there will be an abyss into which many Irish farmers will fall. There will be significant loss of revenue. This is one way in which the slack can be taken up. I put it to the Minister that the Government must come back to the House with a defined Government policy on how farmers can look to the future with regard to alternative energy production and the creation of markets.

Trevor Sargent (Dublin North, Green Party)
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That review is underway and I look forward to further questions in order that we can report on it. The Department is reviewing the scheme and intends to have that completed by mid-2009 in order to assess the need for a further scheme. The new scheme will require State aid approval and we must address this as well as additional Exchequer funding. It will have to take account also of all other demands made. A growth area such as bio-energy must be encouraged because it is an investment that will ensure we are not so dependent on imported fuel. Although we export 80% of our food production we import 90% of the energy for it. Somewhere along the line we must try to reduce that import dependency. Bio-fuel is one of the ways of achieving that.