Written answers

Wednesday, 24 October 2007

Department of Agriculture and Food

Alternative Farm Enterprises

8:00 pm

Photo of Martin FerrisMartin Ferris (Kerry North, Sinn Fein)
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Question 219: To ask the Minister for Agriculture, Fisheries and Food the number of acres devoted to the growing of energy crops; and the projected growth for this sector over the next five years. [25731/07]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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The area of oilseed rape, which is used to produce liquid biofuel, increased from 12,350 acres in 2006 to 18,500 acres in 2007. A further 1,900 acres of willow and miscanthus were planted in 2007. The increase in area planted can be attributed to the developing Bioenergy market and the introduction of incentives at farm level to stimulate production of energy crops. The incentives include a new national energy crops payment of €80 per hectare. This will be paid as a top-up to the EU premium available under the EU Energy Crops Scheme, subject to certain conditions. Establishment grants of up to €1,450 per hectare are available under the new Bioenergy Scheme to encourage farmers to plant willow and miscanthus.

The future outlook for energy crops depends on a number of factors, not least profitability at farm level. In the short-term, the soaring world demand for grain is likely to lead to an increase in the area devoted to conventional cereal crops in Ireland and elsewhere in response to the current high grain prices. More long-term projections are difficult to forecast at this stage. Much will depend on the rate of development of production and consumption patterns for biofuels over the next number of years.

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