Michael D'Arcy (Wexford, Fine Gael)
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Question 35: To ask the Minister for Agriculture, Fisheries and Food if she has considered an additional area-based payment for the biofuel industry, due to the competition from the cereal sector; and if she will make a statement on the matter. [28375/07]

Simon Coveney (Cork South Central, Fine Gael)
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Question 50: To ask the Minister for Agriculture, Fisheries and Food her views on the discontinuation of the State aid grant of €80 per acre of rape seed for seed that is due to be exported; and if she will make a statement on the matter. [28986/07]

Michael D'Arcy (Wexford, Fine Gael)
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Question 57: To ask the Minister for Agriculture, Fisheries and Food if she has considered an additional area-based payment for the biofuel industry due to the increased competition from the cereal sector as it has become more profitable and could negatively impact on biofuel production; and if she will make a statement on the matter. [29142/07]

Mary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 35, 50 and 57 together.

Earlier this year, I introduced a new National Energy Crops payment of €80 per hectare to help kick-start production of energy crops in Ireland. It is intended that the €80 payment will be available for 3 years. It is currently subject to a maximum ceiling of 37.5 hectares per producer over the 3-year period. EU State aid rules limit the amount of aid that may be paid to individual beneficiaries to €3,000 over any period of 3 years. My Department has been pursuing with the European Commission an increase in this ceiling.

The buoyant market for biofuels and the introduction of incentives at farm level, including the €80 premium contributed to an increase in the area devoted to energy crops in 2007. The area of oilseed rape, which is used to produce biofuels, increased from 5,000 hectares in 2006 to 7,500 hectares in 2007. As regards 2008, an increase in the area devoted to conventional cereal crops in Ireland and elsewhere is likely in response to the current high grain prices. However, it is expected that oilseed rape will continue to be a popular crop in 2008 as, in addition to the market demand and the incentives available, many farmers grow it as a "break" crop in tillage cropping situations to help fight crop diseases, improve soil structure and increase yields.

In a single market situation, biofuel feedstocks including oilseeds are traded freely within the European Union. The €80 payment is being paid as a top-up to the EU Premium available under the EU Energy Crops Scheme. Eligible applicants under this Scheme automatically qualify for the €80 National premium. The rules governing the EU Energy Crops Scheme provide that aid can only be granted in respect of areas where production is covered by a contract between the farmer and the processing industry, except where the farmer undertakes the processing himself. Furthermore applicants must deliver all raw materials harvested to a collector or first processor who will take delivery of them and ensure that an equivalent quantity of these raw materials is used within the European Community for the manufacture of energy products.

In 2007, a total of 550 farmers are potentially eligible for the National Energy Crop Premium. My Department has made initial payments to 437 farmers, which are worth approximately €341,000. Payments to the remaining applicants will continue as further cases are cleared.