Bernard Durkan (Kildare North, Fine Gael)
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Question 322: To ask the Minister for Agriculture, Fisheries and Food the acreage currently devoted to biofuel crop production; and if she will make a statement on the matter. [27515/07]

Mary Coughlan (Donegal South West, Fianna Fail)
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The area of oilseed rape, which is used to produce liquid biofuel, increased from 5,000 hectares in 2006 to 7,500 hectares in 2007. A further 800 hectares 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.