Bernard Durkan (Kildare North, Fine Gael)
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Question 409: To ask the Minister for Agriculture, Fisheries and Food the steps he proposes to take to encourage the beet growing sector to diversify with particular reference to the need to maintain farm income; and if he will make a statement on the matter. [25979/08]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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As part of the EU sugar reform package diversification aid worth €44m approximately to Ireland was made available. The main objective of this aid was to provide funding towards the cost of establishing alternative farming enterprises by the former beet growers and thus assist these farmers to earn a replacement income and contribute to the viability of the wider rural economy of the former beet growing areas. The first tranche of 50% (€22m) was paid in September 2007 and the balance was paid in March 2008.

Following the reform of the Common Agriculture Policy in 2003, farmers now have the freedom to focus on new market opportunities including the area of purpose grown energy crops for use as a renewable source of energy in the heat, electricity and liquid bio-fuels markets. The market for energy crops is developing in response to the need to develop alternative renewable sources of energy. To improve the profitability of growing energy crops in Ireland, my Department introduced a number of support measures in 2007. The measures include a new National Energy Crop Premium of €80 per hectare to supplement the EU premium of €45 per hectare available under the EU Energy Crops Scheme. A new Bio-energy Scheme was also introduced to encourage farmers to grow miscanthus and willow for use in the production of heat and electricity. The Scheme provides farmers with establishment grants of up to 50% of the costs of establishment, subject to a maximum grant of €1,450 per hectare. As a further support measure, areas planted with energy crops also qualify for the Single Farm payment. I am confident that these measures will encourage farmers to consider energy crops as an alternative land use option.

Many farmers who previously grew sugar beet will have increased their cereals acreages this year as a result of the increase in cereals prices in recent times and following the decision of the EU Commission to set the obligatory set-aside rate at zero for the 2008 harvest.