New energy crop incentive for farmers
The new initiative will mean that up to half the establishment costs for the planting of multi-annual crops — mainly miscanthus and willow — will be co-financed by the European Union; the present €45 per hectare energy crop premium will stay in place.
Ms Fischer Boel said the European Commission proposed allowing member states to grant national aid of up to 50% of the costs of establishing multi-annual crops; she also announced that the Commission proposes to extend the energy crop premium to its eight new member states.
“We need to do all we can to encourage the production of the raw materials for biofuels,” said the Commissioner, who was visiting Donegal, accompanied by Agriculture and Food Minister Mary Coughlan.
The Commissioner and Minister visited the beef and sheep farm of brothers Seamus and Eamon Quinn, Laghey, who own 180 acres but farm a total of 300 acres.
The data on the development of bioethanol and biodiesel production show a dramatic increase in the demand for energy crops within the next few years.
Ms Fischer Boel said the aid for energy crops is an incentive for farmers to produce crops for energy, rather than food.






