Paul Kehoe (Wexford, Fine Gael)
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Question 437: To ask the Minister for Agriculture and Food when grants will be awarded to growers of biomass crops; the amount per acre each of them will be paid; and if she will make a statement on the matter. [8372/07]

Mary Coughlan (Donegal South West, Fianna Fail)
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As announced in Budget 2007, €14 million will be provided in the period 2007-2009 to incentivise farmers to grow energy crops. The measures include a new national payment of €80 per hectare to top-up the existing EU premium of €45 per hectare and increase the overall premium to €125 per hectare. The premium will be paid as part of the Single Payment. It is intended that the €80 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. €6m has been allocated for this measure over the period 2007-2009.

I have also announced a new Bioenergy Scheme to 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. The scheme provides a maximum payment rate of up to €1,450 per hectare or €580 per acre. The minimum allowable area per applicant eligible for the establishment grant is 4 hectares and the maximum allowable area is 20 hectares. I have extended the deadline for receipt of applications for pre-planting approval to 30 March 2007 to provide every interested farmer with the opportunity to submit an application. All applications will be processed immediately when received in the Department to enable successful applicants commence planting without delay.

The aid will be paid in two instalments:

A maximum of 75% of the aid (€1,088 per hectare) will be paid when the crop is established.

The remaining 25% of the aid (€362 per hectare) will be paid one year after the payment of the 1st instalment grant, provided the applicant has adequately maintained and managed the crop, including the first year cut back.