Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 79: To ask the Minister for Agriculture and Food her plans to increase the rate of support provided to farmers under the energy crop scheme; and if she will make a statement on the matter. [8797/07]

Mary Coughlan (Donegal South West, Fianna Fail)
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As announced in Budget 2007, €14 million will be provided over the period 2007-2009 to incentivise farmers to grow energy crops.

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. My Department is pursing EU approval to increase this hectarage ceiling. €6 million has been allocated to this measure over the period 2007- 2009.

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 have also announced a new Bioenergy Scheme to encourage farmers to plant willow and miscanthus for use as 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. The maximum grant aid payable is €1,450 per hectare. €8 million is being allocated to this Scheme over the period 2007-2009.

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.

Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 80: To ask the Minister for Agriculture and Food if she will increase the rate of payment made to organic farmers; the last time this payment was increased; and if she will make a statement on the matter. [8814/07]

Mary Coughlan (Donegal South West, Fianna Fail)
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The current situation is that organic farmers in REPS with holdings of 3 hectares or more qualify for a supplementary organic payment of €181 per hectare on the first 55 hectares, and €30 per hectare over 55 hectares during the in-conversion period. The equivalent rates when full organic status is attained are €91 and €15 per hectare respectively. Organic farmers also qualify for basic REPS payments. Significant increases in the basic REPS payments were introduced in 2004; €200 per hectare for the first 20 hectares, €175 per hectare between 20 and 40 hectares, €75 per hectare between 40 and 55 hectares and €10 per hectare over 55 hectares.

Organic farmers in REPS with holdings of less than 3 hectares are eligible for payments of €242 per hectare during conversion and €121 with full organic status, on top of the basic REPS payment.

Subject to the approval of the European Commission, I am proposing to increase the payments to organic farmers under Ireland's new Rural Development Programme for the period 2007 to 2013. I am also proposing that the system of organic payments should be operated separately from REPS, though organic farmers will be able to join REPS as well.