Written answers

Tuesday, 28 March 2006

Department of Agriculture and Food

Alternative Farm Enterprises

11:00 pm

Photo of Paul KehoePaul Kehoe (Wexford, Fine Gael)
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Question 351: To ask the Minister for Agriculture and Food the action she will take to encourage farmers in County Wexford into alternative enterprises after they have to stop growing beet; and if she will make a statement on the matter. [12281/06]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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Following the introduction of the single payment scheme last year, farmers now have the freedom to choose whatever farming enterprise is most appropriate to their circumstances. Under the agreement on reform of the EU sugar regime, the single payment scheme is being extended to cover sugar beet. The sugar reform agreement also provides for the introduction of aid for diversification measures in the event that sugar beet production completely ceases. This aid, worth almost €44 million to Irish growers, will be drawn down in the framework of a national restructuring programme to be elaborated when the Commission's implementing regulation has been adopted.

One option which could be considered by farmers is the cultivation of energy crops, such as oilseed rape, for biofuel purposes. The promotion of biofuels is receiving attention by the Government, led by the Department of Communications, Marine and Natural Resources, in the context of renewable energy policies. The budget announcement of the extension of the excise duty relief scheme to cover, when the relief is fully operational, some 163 million litres of biofuels per year should stimulate the production of crops for the manufacture of liquid biofuels. Under the EU energy crops scheme administered by my Department, aid of €45 per hectare per annum is available for areas sown under energy crops intended for biofuel production. I am seeking to have this scheme made more attractive for producers in the context of discussions on the EU biofuels strategy.

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