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Friday, March 19, 2010
MUNSTER has the potential to be a market leader for the growth and production of miscanthus, it has been claimed.
Labour spokesman on agriculture, Seán Sherlock, TD, in a Dáil question, called for greater financial incentives for miscanthus production and for greater Government recognition of its potential to add value to the economy.
Mr Sherlock said an opportunity exists to phase out such fuels as coal and replace them with miscanthus. But he was being told by farmers the set-up costs are quite high.
"The Government needs to do a marketing job to encourage more farmers to diversify into this crop, given the level of expertise, particularly in east Cork and west Limerick."
Mr Sherlock said two companies in these areas are market leaders and are itching to get more farmers but they need a greater financial incentive.
Minister of State Tony Killeen said a bioenergy scheme was launched in 2007 on a pilot basis to encourage farmers to grow willow and miscanthus as a renewable energy source up to the end of 2009.
Member states were authorised by the European Commission to grant aid 50% of the costs of establishment. Farmers were paid a once-off capital grant of up to €1,450 per hectare.
The scheme generated considerable interest from farmers in growing miscanthus. Overall, 2,100 hectares of miscanthus were grant aided.
The department launched a new bioenergy scheme last month to grant aid miscanthus and willow planting to the end of 2012. A total of €1m is available to support the planting of a further 1,000 hectares in 2010.
The scheme will now be funded under the department’s revised rural development programme.
It will follow a similar format to the pilot scheme in terms of the application, pre-planting approval and payment process.
Approved costs will be grant aided up to 50%, subject to a maximum grant of €1,300 per hectare for both crops.
Areas planted with willow and miscanthus continue to qualify for the single farm payment and for payments under REPS and the disadvantaged areas scheme, subject to some restrictions on the areas planted.
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