Coughlan announces €8m package to encourage planting of energy crops

AN €8 MILLION grants package to encourage farmers to grow energy crops was announced yesterday by Agriculture and Food Minister Mary Coughlan.

Grants for the establishment of willow and miscanthus (elephant grass) zones and a top-up to the EU’s energy crops premium are being introduced.

The aim is to encourage the planting of crops for the production of biomass suitable for use as a renewable source of heat and energy.

A new bioenergy scheme will provide grants to farmers for up to 50% of the costs associated with establishing miscanthus and willow on set-aside land and on areas which have been subject to the EU premium of €45 per hectare.

Ms Coughlan said €8m is being allocated for the grant scheme from 2007-2009.

She said the scheme will allow up to 1,400 hectares of willow and miscanthus to be grant-aided in the first year. Under the programme, farmers can receive up to €1,450 per hectare towards establishment costs, with the balance to be invested by the farmer. The closing date for applications is February 28.

Ms Coughlan said: “The scheme will provide opportunities for farm diversification and encourage farmers to consider willow and miscanthus as an alternative land use option.”

She also announced that her department would introduce a top-up payment of €80 per hectare in 2007 to support the growing of energy crops. This will be in addition to the EU energy crops premium of €45 per hectare, bringing the overall payment to €125 per hectare. It is intended that the €80 payment will apply for three years and will be subject to a maximum ceiling per producer.

Ms Coughlan said the European Commission had also confirmed to her that land used for growing willow and miscanthus is eligible to benefit from the single farm payment.

IFA president Padraig Walshe said farmers are committed to producing energy crops, but the cost of establishment has been prohibitive and the return on investment negative.

IFA bio-energy project team leader JJ Kavanagh said Ireland’s reliance on energy imports is not a secure economic position, nor is it environmentally sustainable in the context of climate change and global warming.

“Government energy policy must focus on security of supply and sustainability. This can be achieved by offering a premium for energy produced from biomass crops,” he said.