Dan Neville (Limerick West, Fine Gael)
Link to this: Individually | In context

Question 662: To ask the Minister for Agriculture, Fisheries and Food the position regarding grant assistance for the growing of miscanthus grass; and if she has plans to support development and growth of this alternative crop. [12229/08]

Mary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

In February 2007, I launched a new Bioenergy Scheme on a pilot basis to encourage farmers to plant miscanthus and willow for bioenergy purposes. The objectives of the Scheme are: to establish an agricultural sector involved in the growing of miscanthus and willow specifically to produce biomass suitable for use as a clean and renewable source of heat and energy; to increase the production of energy crops in Ireland and to encourage alternative land use options; to provide opportunities for farm diversification and downstream rural development and employment; to complement other Government measures in the area of renewable energy, such as those developed by the Department of Communications, Energy and Natural Resources.

The scheme provides establishment grants for up to 50% of the costs of establishment, subject to a maximum payment rate of €1,450 per hectare. Establishment grants are payments to cover part of the costs of establishing the crop. Eligible costs include ground preparation, fencing, herbicide control, purchase of planting stock, planting and first year cutback. The scheme was well received with some 700 hectares of miscanthus planted. The second phase of the Bioenergy Scheme was launched in December 2007 and I have provided sufficient funding to support the planting of a further 1,600 hectares of miscanthus and willow in 2008.

In addition to establishment grants, farmers who grow miscanthus also qualify for an EU premium of up to €45 per hectare under the EU Energy Crops Scheme and the National Energy Crop Premium of €80 per hectare. As a further support measure, areas planted with miscanthus also qualify for the Single Farm Payment. I have also extended the aid paid under the Rural Environment Protection Scheme (REPS) and the Disadvantaged Areas Scheme to areas planted with miscanthus, subject to some restrictions on the areas planted.