David Stanton (Cork East, Fine Gael)
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Question 37: To ask the Minister for Agriculture; Fisheries and Food his policy regarding improving the quantity of energy crops grown by farmers; and if he will make a statement on the matter. [12608/11]

David Stanton (Cork East, Fine Gael)
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Question 65: To ask the Minister for Agriculture; Fisheries and Food the supports he has in place to encourage farmers to grow energy crops; and if he will make a statement on the matter. [12607/11]

Shane McEntee (Meath East, Fine Gael)
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I propose to take Questions Nos. 37 and 65 together.

The Department of Agriculture, Fisheries and Food supports the planting of miscanthus and willow crops by giving farmers grant aid under the bioenergy scheme. Farmers are paid a grant of up to a maximum of €1,300 per hectare to cover 50% of the cost of establishing the crop. This scheme is co-funded by the EU under the rural development programme.

In 2010 the area planted under the scheme was 353 hectares. For 2011, 89 applications were received and approvals to plant 480 hectares have issued to date. There are 14 further applications, with a total of 260 hectares, with outstanding issues. The Department is pursuing these with the applicants. It continues to work closely with other Departments and agencies, particularly Teagasc and the Department of Communications, Energy and Natural Resources, with a view to maximising the development of the bioenergy sector.

David Stanton (Cork East, Fine Gael)
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I thank the Minister of State for his response. Is the target of 70,000 hectares by 2015, set by Teagasc in 2008, achievable and what policies are being followed by the Department in this regard? Will the changes to the Sustainable Energy Ireland schemes and greener home scheme, which abolished the grants for wood chip burners, have an impact on the uptake of miscanthus and willow growing?

Shane McEntee (Meath East, Fine Gael)
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I have attended a number of conferences during the six weeks I have been in office, at which serious interest was expressed in regard to the growing of miscanthus and willow crops. Many local authorities, in particular in County Clare, have taken it upon themselves to provide their own heat, through the use of wood pellets and chips. We have an obligation to do this.

There is much frustration within the energy industry. With the support of the Government and Department, many people got involved in the growing of willow and miscanthus but the refit tariff has not yet come through despite our having applied for it almost 12 months ago. This is a major factor in terms of people opting to grow willow, which is a long term plantation, or miscanthus. With greater demand for arable ground and farming going well, this will become more competitive. I am happy that the refit tariff problem will be sorted out shortly. One must apply to the EU for status and accommodation of the tariff and we have replied to all of the questions put to us in this regard.

I am happy this matter will be sorted our fairly soon. This will encourage people, in particular in the energy, sector, to get involved as they will have a fixed income. One cannot get involved in something on a wing and a prayer basis. Willow cannot be grown on any type of ground and one must grow a certain tonnage in order for it to be viable. Also, one must have an outlet for it. I recently attended the Birr show and other shows. People are confident that we can provide our own energy. Energy prices are resulting in higher costs in the farming and pig industry and as such the more energy we can provide the more viable these industries will be.

I am unable to provide the Deputy with a response in regard to his question about whether the 70,000 acres is achievable. However, given the year that is in it we must steady ourselves. We have set targets which I believe we can reach. We must steady the situation in terms of funding. As Minister of State, I am responsible for horticulture and forestry. We must steady the flow of money to support these sectors. Farmers and other people cannot be encouraged to get involved in a business unless it provides a steady income. It is great that marginal land is coming back into grazing. This land is also good for willow and miscanthus planting.

David Stanton (Cork East, Fine Gael)
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Two other important energy crops are sugar beet and rapeseed oil. Perhaps the Minister of State will outline any developments in policy in regard to these crops.

Shane McEntee (Meath East, Fine Gael)
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A study on sugar beet is currently underway and I would be foolish to comment on that. As regards rapeseed oil, I recently visited a plant in Carlow where I saw it being processed on an experimental basis. Every area is being looked at. Willow and miscanthus grass growing is the way forward. I do not believe there will be any increase in funding in this regard. The Minister has a job to do in terms of the manner in which the Department is run. We must ensure that every sector of agriculture is growing and that we fund to the best of our ability the people at the coalface who are being asked to get involved in willow and miscanthus growing. This is a crucial year. We must seek to stabilise the acres we are growing, get the refit tariff in place and convince local authorities, hospitals and other institutions that use a great deal of heat to consider moving away from oil. I referred earlier to local authorities using local fuels, namely pellets or timber, to produce their own heat. This is the way forward. The more energy we can provide within our own system the better for everybody. Also, thousands of jobs can be generated in this sector.