Jack Wall (Kildare South, Labour)
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Question 1195: To ask the Minister for Agriculture and Food the plans or proposals she has to provide incentives to farmers in the Kildare and Carlow region to provide alternative crops to overcome the loss of the sugar beet crop; and if she will make a statement on the matter. [29378/06]

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 where 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, Ireland will be required to submit the restructuring programme to the Commission by the end of thisyear.

I am aware there has been renewed interest among farmers in growing energy crops as a feedstock for bioenergy purposes following the closure of the sugar industry. The key issue for farmers considering energy crops, as an alternative crop, is the expectation of a good economic return. In this context, the Government announced in the last budget, an expanded excise relief scheme valued at €205m to stimulate the demand for biofuels. At farm level, support by way of a premium of €45 per hectare is currently available under the EU Energy Crops Scheme. I called last February for the premium to be reviewed and the EU Commission undertook to review the operation of the scheme. Last week, the Commission published a Report on the implementation of the scheme, which my Department is examining.

I believe the development of an indigenous bioenergy industry would not alone create new opportunities for farmers to diversify into growing energy crops and other forms of renewable energy, but is important for environmental and energy supply reasons. A Ministerial Taskforce has been established to oversee preparation of a National Bioenergy Strategy by end 2006.

Martin Ferris (Kerry North, Sinn Fein)
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Question 1196: To ask the Minister for Agriculture and Food if farmers are permitted to grow energy crops on set-aside land. [29380/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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Council Regulation EC No. 1973/2004 provides that any agricultural raw material with the exception of Jerusalem artichokes or chicory roots may be grown on set-aside land, provided that they are intended primarily for use in the production of the end products referred to in Annex 1 of the Regulation, which include products intended for energy purposes.

Martin Ferris (Kerry North, Sinn Fein)
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Question 1197: To ask the Minister for Agriculture and Food if any research is currently being conducted in relation to the potential for the use of forestry based biomass in Ireland; and if she will make a statement on the matter. [29610/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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There is considerable potential for the use of forestry-based biomass, such as thinnings, as a source of renewable energy. A pilot study is underway in Co. Clare, with funding from my Department, on the feasibility of establishing a locally-based wood fuel economy.

COFORD, the National Council for Forest Research and Development, is conducting trials on the harvesting, chipping and transport of forest biomass, under the 'Forest Energy 2006' banner. The overall objective is to demonstrate ways to produce high quality wood chip fuel from forest plantations, suitable for the heating and/or power generation sectors. In conjunction with the trials, field demonstrations of harvesting equipment and techniques have been held at six locations, in collaboration with Teagasc forestry staff. These have attracted many hundreds of forest owners and contractors. Bord na Móna has also been involved in the programme of work, through the investigation of wood chip transport and roading logistics. Results from the trials, in terms of machine productivity, thinning systems, fuel quality and logistics are currently being collated and will be presented at a COFORD conference in December.

COFORD has also commissioned work on the potential supply of forest biomass from thinnings and other sources. This information has been used in conjunction with a separate review of forest policy that is underway in my Department. COFORD intends to continue calls for further research proposals on wood energy in the near future.