Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 527: To ask the Minister for Agriculture and Food if she has plans to support the efforts of beet growers to diversify into other areas of agriculture; if the necessary funding will be provided; and if she will make a statement on the matter. [28087/06]

Mary 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 compensation. 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 €44m, would be drawn down in the framework of a national restructuring programme. Under the Commission implementing regulation, which was published recently, Ireland will be required to provide a restructuring plan to the Commission by the end of this year.

I am also working closely with my colleague the Minister for Communications, Marine and Natural Resources to promote the development of biofuels which could provide an alternative land use for farmers.