Written answers

Wednesday, 24 June 2015

Department of Agriculture, Food and the Marine

Alternative Farm Enterprises

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Fianna Fail)
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149. To ask the Minister for Agriculture, Food and the Marine if he has considered the development of an indigenous willow growing industry located in the midlands, underpinned by long term supply contracts; if he has examined any incentive measure including grant aid or tax breaks with the Minister for Finance; and if he will make a statement on the matter. [25206/15]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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My Department has had a Bio-Energy Establishment Scheme in place since 2007, and this Scheme specifically provides support for the establishment of willow plantations. The Scheme has been variously funded at different times solely by the Exchequer or by a combination of national and EU funds. At present, the scheme is wholly Exchequer-funded. The 2015 Scheme focuses exclusively on the growing of willow and provides establishment grants to farmers of up to 40% of the crop establishment costs subject to a maximum grant of €1,040 per hectare. In the light of disappointing take-up in recent years, and in response to submissions from the sector, the eligible area for planting was increased substantially from 30 hectares to 50 hectares under the 2015 scheme. Despite this, interest in the scheme remains very low with just four applications this year for a total of 145 hectares of willow, much of which is not expected to proceed. In the circumstances, my Department is now reviewing its options for the future.

The following table shows planting levels under the Scheme since 2007.

Planting figures for the Bioenergy Scheme:

YearMiscanthusWillowTotal Area PlantedTotal Expenditure
(Hectares)(Hectares)(Hectares)€m
2007617646810.654
20087751289031.077
20097091688771.090
20101591853440.594
2011781302080.357
201264991630.258
20131262740.178
201401031030.087
Total241493933534.32

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Fianna Fail)
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150. To ask the Minister for Agriculture, Food and the Marine if he has considered the case for the development of an indigenous willow growing industry located in the midlands, underpinned by long-term supply contracts with Bord na Móna’s stations; and if he will make a statement on the matter. [25207/15]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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My Department has had a Bio-Energy Establishment Scheme in place since 2007, and this Scheme specifically provides support for the establishment of willow plantations. In fact, the 2015 Scheme focuses exclusively on the growing of willow and provides establishment grants to farmers of up to 40% of the crop establishment costs subject to a maximum grant of €1,040 per hectare. In the light of disappointing take-up in recent years, and in response to submissions from the sector, the eligible area for planting was increased substantially from 30 hectares to 50 hectares under the 2015 scheme.

Despite this, interest in the scheme remains very low with just four applications this year for a total of 145 hectares of willow, much of which is not expected to proceed. In the circumstances, my Department is now reviewing all options for the future, including the value of long-term supply contracts where feasible.

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