Barry Andrews (Dún Laoghaire, Fianna Fail)
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Question 99: To ask the Minister for Agriculture and Food the action she is taking to promote energy crops; and if she will make a statement on the matter. [3694/07]

Mary Coughlan (Donegal South West, Fianna Fail)
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Under the EU Energy Crops Scheme, aid of €45 per hectare is available for areas sown under energy crops provided they are intended primarily for use in the production of biofuels and electric and thermal energy produced from biomass. I intend to introduce an additional national payment of €80 per hectare in 2007 as a further incentive for farmers to grow energy crops. The €80 payment will be paid as a top-up to the EU premium of €45 per hectare, bringing the overall payment to €125 per hectare. It is intended that the €80 additional payment will apply for three years and will be subject to a maximum ceiling per producer over the three years. The current maximum area per producer is 37.5 hectares.

Set aside land can also be used for a variety of non-food uses including the growing of crops for energy purpose and will therefore qualify to activate set-aside entitlements under the Single Payment Scheme.

I also intend to introduce a new Bioenergy Scheme for a limited period to encourage farmers to plant willow and miscanthus for use a renewable source of energy. The Scheme will provide establishment grants to farmers for up to 50% of the costs associated with establishing miscanthus and willow on set-aside land and on areas, which have been subject to an application for the EU premium of €45 per hectare. €8 million is being allocated to this Scheme over the period 2007-2009. The scheme details are being finalised and will be announced shortly.

On the demand side, the recently announced Mineral Oil Tax Relief Scheme valued at €205m will provide an additional stimulus for the production of energy crops. When fully operational in 2008, it will deliver some 163 million litres of biofuels per year and provide farmers with a stable market to supply feedstock for production of biofuels.

I am confident that these measures will increase the production of energy crops in Ireland and encourage farmers to consider energy crops as an alternative land use options.