Denis Naughten (Longford-Roscommon, Fine Gael)
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Question 137: To ask the Minister for Agriculture and Food the figures for the number of farmers participating in her Department's energy crop scheme; the amount of hectares under this scheme; the amount of energy crop tonnage to the hectares produced under this scheme; and if she will make a statement on the matter. [28485/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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There are 113 farmers contracted to participate in the 2005 energy crops scheme operated by my Department. A total of 1,390 hectares is involved, with a forecasted yield of 3,118 tonnes.

Following the introduction of the single payment scheme, the production of crops for energy purposes will, in common with all agricultural production in future, be demand driven. Farmers will only produce crops for bioenergy if the economic returns are greater than those offered by more traditional uses. The production of liquid biofuels from energy crops is not economic at current oil price levels. However, the scheme for mineral oil tax relief on pilot biofuel projects recently announced by my colleague, the Minister for Communications, Marine and Natural Resources, is important in stimulating the production of energy crops, as the current payment under the single payment scheme for that purpose in itself is insufficient.

Teagasc, which has responsibility for the provision of research and advisory services for the agri-food sector, has done some valuable work on energy crops. I am anxious to encourage further progress in this area and I have arranged for research projects on biofuels and other non-food uses of crops to be included in the latest call under my Department's research stimulus programme.